MIRA INFORM REPORT

Report Date :

23.08.2014

IDENTIFICATION DETAILS

Name :	SHREEJI FABRICS
Registered Office :	Plot No. 107, Royal Industrial Estate, Opposite Shiv Shakti Estate, Amroli-Sayan Road, Delad, Olpad, Surat – 394130, Gujarat
Country :	India
Date of Establishment :	04.03.2014
Capital Investment :	Not Divulged
PAN No.: [Permanent Account No.]	ACNFS3499J
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer of Grey Fabrics.
No. of Employees :	9 (1 in Office, 8 in Factory) (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 and establishing itself gradually. Mr. Haresh Balar, Partner has provided all general information. Business is active. Payment terms are unknown. The concern can be considered for business dealings on a safe and secure 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 that 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. Hareshkumar Nanubhai Balar
Designation :	Partner
Contact No.:	91-9825771971
Date :	21.08.2014

LOCATIONS

Registered Office/ Factory :	Plot No. 107, Royal Industrial Estate, Opposite Shiv Shakti Estate, Amroli-Sayan Road, Delad, Olpad, Surat – 394130, Gujarat, India
Tel. No.:	Not Available
Mobile No.:	91-9825771971 [Mr. Hareshkumar Nanubhai Balar]
Fax No.:	Not Available
E-Mail :	royalnet1@rediffmail.com
Location :	Owned

PARTNERS

Name :	Mr. Hareshkumar Nanubhai Balar
Designation :	Partner
Address :	117/118 Keshav Park Society, Opposite Pandol Industries, Ved Road, Surat - 395004, Gujarat, India
Date of Birth/Age :	04.11.1984
Qualification :	B. Com
PAN No.:	AKHPB2841D
Name :	Mrs. Rakshitaben Hareshbhai Balar
Designation :	Partner
Address :	117/118 Keshav Park Society, Opposite Pandol Industries, Ved Road, Surat - 395004, Gujarat, India
Date of Birth/Age :	10.09.1987
PAN No.:	BXRPB2672L

BUSINESS DETAILS

Line of Business :	Manufacturer of Grey Fabrics.
Terms :
Selling :	Credit [30 Days]
Purchasing :	Credit [60 Days]

GENERAL INFORMATION

Suppliers :	· Shreeji Yarn Ind Private Limited Address: 2012 World Trade Center Surat, Gujarat, India Contact Person: Raju Bhai [91-9825015511] · Hanumant Creation Address: 163, P.T.M Market, Ring Road, Surat Contact Person: Ramesh Rathi [91-9328125576]
Customers :	Wholesalers
No. of Employees :	9 (1 in Office, 8 in Factory) (Approximately)
Bankers :	Not Available

Banking Relations :	--
Auditors :	Not Available
Associates/Subsidiaries :	· Shreeji Tex-Style Address: Plot No. 14/15, Hajari Industrial Estate, Delad, Sayan, Surat, Gujarat, India Line of Business: Manufacturing of Grey Cloth

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	No
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	Yes
15]	Capital in the business	No
16]	Details of sister concerns	No
17]	Major suppliers	Yes
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	No
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

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COST OF PROJECT

(RS. IN MILLIONS)

PARTICULARS	PROPOSED	TOTAL
1. Land and site development	0.225	0.225
2. Building	--	--
3. Plant and Machinery
- Imported	0.000	0.000
TUF	11.262	11.262
4. Electrification	0.050	0.050
5. Office Equipment’s	0.075	0.075
6. Computer	0.050	0.050
7. Vehicles	0.000	0.000
8. Other (Non-Current Assets)	0.000	0.000
9. Margin for Working Capital	2.505	2.505
TOTAL	14.167	14.167

MEANS OF FINANCE

(RS. IN MILLIONS)

PARTICULARS	PROPOSED	TOTAL
Loan From Financial Institutes
TUF	0.000	8.447
NON TUF	8.447
Unsecured Loan	2.021	2.021
Promoter Contribution	3.700	3.700
TOTAL	14.167	14.167

DEBT EQUITY RATIO

2.83

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D.S.C.R. ANALYSIS

(RS. IN MILLIONS)

	DIVISION A	2015	2016	2017	2018	2019
1	Net Profit after taxation	0.901	2.140	2.424	2.656	2.908
2	Depreciation	0.620	1.240	1.240	1.240	1.240
3	Interest on Term Loans	0.565	0.970	0.730	0.490	0.250
	TOTAL	2.086	4.350	4.394	4.386	4.398
	DIVISION B
1	Interest on Term Loans	0.565	0.970	0.730	0.490	0.250
2	Term Loan installments [due within a year]	0.445	1.778	1.778	1.778	1.778
	TOTAL	1.010	2.748	2.508	2.268	2.028
	YEARLY D.S.C.R.	2.07	1.58	1.75	1.93	2.17
	AVERAGE D.S.C.R. OF FIRST YEAR	1.90

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CASH FLOW STATEMENT

(RS. IN MILLIONS)

SR. NO.	SOURCES OF FUNDS	2015	2016	2017	2018	2019
	Net profit before tax & int.	1.749	3.618	3.885	4.062	4.255
	Promoter's capital	0.000	0.000	0.000	0.000	0.000
	Depreciation	0.620	1.240	1.240	1.240	1.240
	Share Application Money
	preliminary expenses w/off	0.000	0.000	0.000	0.000	0.000
	Term loan from	0.000	0.000	0.000	0.000	0.000
	Bank borrowings	1.000	0.000	0.000	0.000	0.000
	Government cash subsidy	--	0.000	0.000	0.000	0.000
	TOTAL	3.369	4.858	5.125	5.302	5.495
	DISPOSITION OF FUNDS
	Preliminary & Preoperative expenses	0.000	0.000	0.000	0.000	0.000
	Fixed assets	0.000	0.000	0.000	0.000	0.000
	Increase in current assets	3.505	0.083	0.041	0.156	0.142
	M.T.L. repayments	0.445	1.778	1.778	1.778	1.778
	Funds for investments	0.500	1.000	1.500	1.700	2.000
	Interest on term loan on working capital	0.565	0.970	0.730	0.490	0.250
	Taxation	0.283	0.508	0.731	0.916	1.097
	Drawings	0.000	0.000	0.000	0.000	0.000
	TOTAL	5.298	4.339	4.780	5.040	5.267
	Opening balance	2.505	0.576	1.096	1.440	1.701
	Surplus/(Deficit)	(1.929)	0.519	0.345	0.261	0.228
	Closing balance	0.576	1.096	1.440	1.701	1.929

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WORKING CAPITAL ASSESSMENT

(RS. IN MILLIONS)

PARTICULARS	Year 1	Year 2	Year 3	Year 4	Year 5
Capacity %	75	78	80	83	85
Working capital required	3.505	3.588	3.629	3.786	3.928
Banking facility	1.000	1.000	1.000	1.000	1.000
Promoters' contribution	2.505	2.588	2.629	2.786	2.928

SR. NO.	PARTICULARS	2015	2016	2017	2018	2019
1	Raw Material-Indigenous	0.619	0.572	0.564	0.591	0.611
2	Work in progress	0.523	0.471	0.465	0.487	0.503
3	Finished goods	0.794	0.867	0.881	0.918	0.954
4	Debtors	1.985	2.037	2.069	2.157	2.240
5	Loans and Advances	0.175	0.182	0.187	0.194	0.198
6	Cash & Bank Balances	0.576	1.096	1.440	1.701	1.929
	TOTAL	4.671	5.225	5.606	6.048	6.436
	LESS :
7	T/L Inst. in 1 yr.	1.778	1.778	1.778	1.778	0.000
8	Creditors	0.523	0.471	0.465	0.487	0.503
9	Unpaid expenses	0.067	0.070	0.071	0.074	0.076
10	Cash Credit	1.000	1.000	1.000	1.000	1.000
	TOTAL.	3.368	3.319	3.314	3.339	1.579
	NET WORKING CAPITAL	1.303	1.905	2.291	2.709	4.857
	Current Ratio	1.39	1.57	1.69	1.81	4.08

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PROFITABILITY ANALYSIS

(RS. IN MILLIONS)

SR. NO.	PARTICULARS	2015	2016	2017	2018	2019
I	Efficiency Percentages (%)	75	78	80	83	85
II	SALES	8.845	19.318	19.625	20.458	21.252
	TOTAL	8.845	19.318	19.625	20.458	21.252
III	COST OF PRODUCTION
1	Consum. of Raw Materials	5.825	10.504	10.359	10.850	11.217
2	Job Charges	0.000	0.000	0.000	0.000	0.000
3	Power and Fuel	0.552	1.205	1.224	1.276	1.326
4	Direct Labour and Wages	0.702	1.474	1.548	1.625	1.707
5	Consumable Stores	0.225	0.450	0.473	0.497	0.521
6	Repairs and Maintenance	0.052	0.113	0.125	0.137	0.151
7	Other Manufacturing Expenses	0.074	0.178	0.196	0.215	0.237
8	Depreciation	0.620	1.240	1.240	1.240	1.240
9	Rental Charges	--	0.000	0.000	0.000	0.000
	ADD: Opening stock of work in process	--	0.523	0.471	0.465	0.487
	LESS: Closing stock of work in process	0.523	0.471	0.465	0.487	0.503
IV	TOTAL COST OF PRODUCTION	7.527	15.217	15.172	15.819	16.382
	ADD: Opening stock of Finished goods	0.000	0.794	0.867	0.881	0.918
	LESS: Closing stock of Finished goods	0.794	0.867	0.881	0.918	0.954
V	COST OF SALES	6.733	15.144	15.158	15.782	16.346
	GROSS PROFIT	2.112	4.174	4.467	4.677	4.906
VI	FINANCIAL CHARGES
	i) Bank Interest	0.565	0.970	0.730	0.490	0.250
	ii) Other Interest on Working Capital	0.068	0.135	0.135	0.135	0.135
VII	ADMINISTRTION & SELLING EXP	0.295	0.421	0.447	0.480	0.516
	OTHER INCOME	--	--	--	--	--
	OTHER EXPENSE	0.000	0.000	0.000	0.000	0.000
	NET	0.000	0.000	0.000	0.000	0.000
IX	PRELIMINARY EXPENSES	0.000	0.000	0.000	0.000	0.000
X	PROFIT BEFORE TAXATION	1.184	2.648	3.155	3.571	4.005
XI	PROVISION FOR TAXES	0.283	0.508	0.731	0.916	1.097
XII	NET PROFIT	0.901	2.140	2.424	2.656	2.908
XIII	LESS : DRAWINGS	0.000	0.000	0.000	0.000	0.000
XIV	RETAINED PROFIT	0.901	2.140	2.424	2.656	2.908
XV	ADD: DEPRECIATION	0.620	1.240	1.240	1.240	1.240
	P & P EXPS	0.000	0.000	0.000	0.000	0.000
XVI	NET YEARLY CASH GENERATION	1.521	3.380	3.664	3.896	4.148
		17.19	17.50	18.67	19.04	19.52

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ANALYSIS OF BALANCE SHEET

(RS. IN MILLIONS)

	LIABILITIES	2015	2016	2017	2018	2019
1	Promoter's Contribution	3.700	3.700	3.700	3.700	3.700
2	Reserves & Surplus
	i) Share Application Money	0.000	0.000	0.000	0.000	0.000
	ii) Profit & loss A/C (Bal.)	0.901	3.041	5.466	8.121	11.029
	NET WORTH	4.601	6.741	9.165	11.821	14.729
3	Secured Loans
	Term Loan From Bank (Excluding T/L inst. due in 1 year)	6.224	4.446	2.667	0.889	0.889
4	Unsecured Loans	2.021	2.021	2.021	2.021	2.021
5	Deferred Tax Liability	0.000	0.000	0.000	0.000	0.000
	TOTAL	8.245	6.467	4.688	2.910	2.910
	CURRENT LIABILITIES
6	T/L Inst. Due in 1 Year	1.778	1.778	1.778	1.778	0.000
7	Creditors	0.523	0.471	0.465	0.487	0.503
8	Unpaid expenses	0.067	0.070	0.071	0.074	0.076
9	Cash Credit	1.000	1.000	1.000	1.000	1.000
	TOTAL	3.368	3.319	3.314	3.339	1.579
	TOTAL LIABILITIES	16.213	16.527	17.168	18.070	19.218
	ASSETS
1	Fixed Assets	11.042	9.802	8.562	7.322	6.082
2	New Investments	0.500	1.500	3.000	4.700	6.700
	TOTAL	11.542	11.302	11.562	12.022	12.782
	CURRENT ASSETS
1	Raw Material-Indigenous	0.619	0.572	0.564	0.591	0.611
2	Work in progress	0.523	0.471	0.465	0.487	0.503
3	Finished goods	0.794	0.864	0.881	0.918	0.954
	TOTAL	1.935	1.911	1.910	1.996	2.068
4	Debtors	1.985	2.037	2.069	2.157	2.240
5	Expenses	0.175	0.182	0.187	0.194	0.198
6	Cash & Bank Balances	0.576	1.096	1.440	1.701	1.929
7	Preliminary Expenses	0.000	0.000	0.000	0.000	0.000
	TOTAL	2.736	3.314	3.696	4.052	4.368
	TOTAL ASSETS	16.213	16.527	17.168	18.070	19.218

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VALUATION REPORT

PART – A

GENERAL DETAILS:

Purpose for which valuation is made

To determine open present Fair Market Value

Date as on which valuation is made

01st August, 2014

Name of the Owner/owners

1) Hareshbhai Nanubhai Balar

2) Rakshitaben Hareshbhai Balar

if the property is under joint ownership /co-ownership, share of each such owner. Are the shares undivided?

Property is under joint ownership with undivided equal share

Brief Description of the Property

An industrial shed with big hall

Location, Street, Ward no.

Shed on Plot No. 107, Royal Industrial Estate, Amroli-Sayan Road, Moje-Village Delad, Sub District Olpad, District Surat

Survey / Plot No. of Land

Block No. 172, Moje-Village Delad, Sub District Olpad, Dist. Surat

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

Industrial Area

Classification of locality high class / middle class / poor class

Middle Class

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

Civic amenities are at moderate distance

Means and Proximity to surface communication by the locality is served

Private vehicles

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

Area of land : 126.39 sq.mts.

Shape : Regular

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 leasehold, the name of lessor/lessee, nature of lease, dates of commencement and termination of lease and terms of renewal of lease;

It is Freehold Land.

(i) Initial premium

Not applicable

(ii) Ground rent payable per annum

Not applicable

(iii) Unearned increase payable to the lessor in the event of sale or transfer

Not applicable

Is there any restrictive convenant in regard to use of land? If so, attach a copy of the convenant

Yes, it is to be used as per zoning regulations of concerned authority

Area there any agreements of easements? If so, attach copies

No

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

No

Has any contribution been made towards development or is any contribution been made towards development or is any demand for such contribution still outstanding?

Not explored

Has the whole or part of land been notified for acquisition by Government or any statutory body? Give date of the notification

No

Attach a dimensioned site plan

Layout plan is attached

Attached plans and elevations of all structures standing on the land a layout plan

Plan showing details of building like elevation, section etc. is attached

Furnish technical details of the building on a separate sheet (The Annexure to this Form may be used)

Furnished in part II

It the building owner-occupied/tenanted/both?

Property is owner occupied

If partly owner-occupied, specify portion and extent of area under owner-occupation

Not applicable

What is the Floor Space Index permissible and percentage actually utilized?

Permissible F.S.I :1

F.S.I. utilized : 0.98

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

Property is transferred with consideration of Jantri (Annual Statement of Rates) only

Land rate adopted in this valuation

Rs.13500/- per sq.mt.

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

Through local inquiry with prestigious real estate consultants and guide line rate (Jantri) with correction factors

Year of commencement of construction and year of completion

Not applicable

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

Not applicable

For items of work done on contract, produce copies of agreements

Not applicable

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

Not applicable

TECHNICAL DETAILS

PART – II

No of floors and its height of building

Ground floor : 4.27 mt.

Plinth area floor-wise

(As per IS : 3861-2002)

· Ground floor : 108.834 sq. mts.

Mezzanine floor : 15.00 sq. mts.

Year of construction

1993 onwards

Estimated future life

40 years in normal condition with regular and preventive maintenance

Type of construction----load bearing walls/RCC frame/steel frame

R.C.C. frame structure

Type of foundations

Not explored

Walls

(a) Basement and plinth

(b) Ground floor

(c) Superstructure above ground floor

23 cm. thick brick walls in cement mortar

23 cm. thick brick walls in cement mortar

---

Partitions

12 cm. thick brick walls in cement mortar

Doors and windows

M.S. sliding gate and M.S. windows

Flooring

Rough stone

Finishing

Smooth cement plaster coated with white wash

Roofing and terracing

R.C.C. slab on top floor

Special architectural or decorative features, if any

Not provided

(i) Internal wiring---surface or conduit

(ii) Class of fittings: superior/ ordinary /poor

Open wiring

Ordinary

Sanitary installations:

(a)

(i) No. of Indian W.C.

(ii) No. of E.W.C.

(iii) No. of urinals

(iv) No. of sinks

(v) No. of bath tub

(vi) No. of bidets

(vii) No. of geysers

Not provided

(b) Class of fittings: Superior/ Coloured/superior/white ordinary

Not applicable

Compound walls :

(i) Height and length

(ii) Type of construction

Not provided

No. of lifts and capacity

Not provided

Underground sump----capacity and type of construction

Not explored

Overhead tank:

(i) Where located

(ii) Capacity

(iii) Type of construction

Not provided

Pumps--- no. and their horse power

Not applicable

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

Not provided

Sewage. If septic tanks provided, no. and capacity

--

Boundaries of the property

North : Plot no. 89

South : Internal society road

East : Margin land

West : Plot no. 108

PART B : Factors considered for Valuation:

(1) Situation, size, frontage, potentiality…etc. of the property:

The property under valuation is situated within limit of Delad village, which is at short distance from Sayan. The property is about 12-15 kms away from limit of Surat city. Day to day basic civic amenities like shops, schools, banks, dispensary, hospital, bus-rickshaw pick up stand etc. are at moderate distance. Infrastructure facilities like roads, electricity, water supply, drainage, telephone etc. are available in this area. Surrounding area is developed by industrial units.

Royal Industrial estate is located on Amroli-Sayan road at Delad. Surat is mainly known for two businesses i.e. textile and diamond. Development of the Surat and surrounding area has built a new horizon. There is a shortage of land in core of Surat city for expanding a business, entrepreneurs have started to establish their setup in outskirt of Surat. They are activated in Sayan and surrounding area like Delad, Gothan etc., reasons are; availability of labour at cheaper rate, more F.S.I. available, ease connectivity with National Highway and state highway etc. This has resulted in upward revision in the prices of land rate in this area.

PART C : Value of the Property :

After considering various factors like situation of the property, age and condition of the building, nature of development of surrounding area, etc. I determine value of the property as under;

(i) Cost price of the property :

As per documents produced to me;

Sale Deed	Registration No. 6999 Dated 23-05-2014
Consideration (excluding stamp duty, registration, miscellaneous charge etc)	Rs. 0.700 Million (i)

(ii) Open Fair Market Value of the property:

Market value is defined as the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing where in the parties had each acted knowledgeably, prudently and without compulsion. Market Value is not a intrinsic and conclusive test of a real value, market value always fluctuates with so many factors like economic and market conditions, profitability, government policies, political stability, physical and legal condition of the property and its surroundings, cost price index revision...etc. value will very over time and from place to place.

Surat, is branded as commercial capital of Gujarat by all standards, has advanced ahead in terms of economic development. Surat has grown at a decadal average growth rate of 60% during last four decades which is phenomenal in across the Globe, when it is compared with identical cities of the world. The city is also rated as the 4th fastest growing city of the world. Surat has extended as compact city with wider roads, flyovers and bridges. City is also planned under town planning schemes which covers 177 sq. km. network of wide roads, plots for social and basic amenities, infrastructures like water, drainage, storm water drainage, street lights, footpaths, dividers…etc. Surat Municipal Corporation has set an example of good governance by its efficient and result oriented functioning. SMC has made the city worth living. This has resulted in migration of people either for employment of enter price from other states. In view of this, prices of land and building have increased in many folds.

(A) Valuation of Land:

Land rate for this property is adopted on the basis of Jantri rate with correction factors, local inquiry from the neighbors, real estate consultants and brokers. The marketability, utility, demand and supply of residential and commercial land is also considered. Waitage is given on shape, size, prominence and location of the land. Recent development in the vicinity of the property has a vital roll in the upward revision of the land rate in this area.

Prevailing market rate of land in this area	Rs.13000/- to Rs.14000/- per sq.mt.
Guide line rate as per Jantri;	Rs.890/- per sq.mt.

Area of Land	126.39 sq. mts.
Land rate adopted	Rs.13500/- per sq.mt.
Value of Land	126.39 sq. mts. x Rs.13500/-
	Rs. 1.706 Millions [A]

(B) Value of Structures:

Value of building is assessed on the basis of type of construction, age and physical condition of building, quality of specifications of input building material, finishing, workmanship, reproduction cost of the building and allowing appropriate depreciation by straight line method assuming a salvage value of 10%.

My inspection reveals that the building is not in use. There is a common entrance provided for plot no. 107 and 108. Access to the mezzanine floor is provided from plot no. 108.

Year of construction (as reported by owner)	1993 onwards
Estimated future life of the building	40 years in normal condition with regular and preventive maintenance

Built up area Ground floor	108.834 sq. mts.
Mezzanine floor	15.000 sq. mts.
	123.834 sq. mts.
Depreciated built up area rate adopted	Rs.7500/- per sq.mt.
Present value of the property	123.834 sq. mts. x Rs.7500/-
	Rs. 0.929 Million [B]

Total value of the property	(A) + (B)
	Rs. 1.706 Millions + Rs. 0.929 Million
	Rs. 2.635 Millions (ii)

(iii) Distress Value of the property:

The transaction without restriction or force under any circumstances will command fair or reasonable price of the property, on the other hand, if the sale of the property is under pressure, force or compulsion, it may not fetch the optimum price or fair Value of the property.

It is common that distress value will fetch lesser value than the fair market value. The percentage of lesser value varies according to the economic conditions, physical and legal status of the property…etc. at the time of sale under pressure.

After considering various factors prevailing at the time of valuation like present economic condition, existing market condition, condition of the property, location of the property under valuation etc., I allow 15% discount on Fair Market Value to arrive at the present distress value of the property.

Distress Value of the Property	85/100 x Rs. 2.635 Millions
	Rs. 2.240 Millions (iii)

(iv) Registration Value for similar property with sub registrar as on date of valuation:

Sale instances for the identical property proximous to the property under valuation are not available with the office of the sub registrar. However in order to ascertain the market value, section 32(A) of Bombay Stamp Act, 1958 is introduced. Under this section, Ready Reckoner-Jantri, showing guidelines for stamp duty valuation is prepared in the year 1984, which was revised in 1992 by adding certain percentage in the rates of the year 1984. Again revision is made in Jantri on adhoc basis and implemented till 1999. Same Janrti is extended, modified and revised in 2008, subsequently Revenue Department of Government of Gujarat has passed resolution for new Jantri which is implemented from 18-04-2011.

Value of the property as per present Jantri; (Annual Statement of Rates);
Value of the land	126.39 sq. mts. x Rs. 890/- Rs. 0.112 Million
Value of structure	Rs. 0.929 Million
	Rs. 1.041 Millions (iv)

Jantri rate is on too much lower side. This value does not include many factors some of them are exact location, quality of development of surrounding area, quantum and quality of internal and external infrastructure facilities.

PART D : Value for Insurance Purpose:

If the property is to be insured for natural calamity like earthquake, fire etc., It is to be insured for reinstatement cost i.e. compensation amount to be recovered from insurance company.

Value for Insurance Purpose

Rs. 0.900 Million

PART E : Summary of Valuation of the property;

(i) Cost price	Rs. 0.700 Million
(ii) Open present fair market value	Rs. 2.635 Millions
(iii) Distress value	Rs. 2.240 Millions
(iv) Registration value for similar properties with sub registrar office (value as per Annual Statement of Rates: Jantri):	Rs. 1.041 Millions

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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. 60.77
UK Pound	1	Rs. 100.72
Euro	1	Rs. 80.56

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	SUM
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.