MIRA INFORM REPORT

Report Date :

24.11.2014

IDENTIFICATION DETAILS

Name :	PEARL FAB
Registered Office :	G-38, Diamond World, Mini Bazaar, Varachha Road, Surat – 395006, Gujarat
Country :	India
Date of Incorporation/ Year of Establishment :	27.06.2014
Capital Investment :	Not Divulged
IEC No.:	5214012781
PAN No.: [Permanent Account No.]	AAQFP0602B
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer of Art Silk Grey Cloth.
No. of Employees :	6 (Approximately) (In Factory)

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 incorporated during 27^th June, 2014 and establishing itself gradually. Mr. Shivlal U Rajani (Partner) has provided us with all information and he also confirmed that the concern has not yet started its business activity. Payment terms are reported to be 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

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

NOT AVAILABLE

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. Shivlal U Rajani
Designation :	Partner
Contact No.:	91-9925015923
Date :	21.11.2014

LOCATIONS

Registered Office :	G-38, Diamond World, Mini Bazaar, Varachha Road, Surat – 395006, Gujarat, India
Tel. No.:	Not Available
Mobile No.:	91-9925015923 [Mr. Shivlal U Rajani]
Fax No.:	Not Available
E-Mail :	pearlfab@hotmail.com
Area :	222 Sq. ft.
Location :	Owned
Factory :	Plot No. P-37, Sayan Textile Park, Nera RJD Park, SITP-3, Adajan Hazira Road, Ichhapore, Surat – 394510, Surat, Gujarat, India
Area :	3348.80 Sq. ft.
Location :	Owned

PARTNERS

Name :	Mr. Kishorbhai Padmabhai Nakrani
Designation :	Partner
Address :	161, S S Parvati Society, A.K. Road, Surat – 395006, Gujarat, India
Date of Birth/Age :	18.07.1978
Qualification :	10^th
Experience :	12 Years
Date of Appointment :	27.06.2014
PAN No.:	AARPN2042C
Name :	Mr. Kantibhai Manjibhai Gangani
Designation :	Partner
Address :	31, Surbhi Vihar, Opposite Renuka Bhavan, Puna Bombay Market Road, Surat – 395010, Gujarat, India
Date of Birth/Age :	06.06.1979
Qualification :	7^th
Experience :	7 Years
Date of Appointment :	27.06.2014
PAN No.:	AJYPG7981P
Name :	Mr. Shivlal Ukabhai Rajani
Designation :	Partner
Address :	5, Ekta Row House, Mota Varachha, Surat – 394110, Gujarat, India
Date of Birth/Age :	06.02.1981
Qualification :	10^th
Experience :	5 Years
Date of Appointment :	27.06.2014
PAN No.:	AHWPR6083P
Name :	Mr. Sharadbhai Bhikhabhai Bharodiya
Designation :	Partner
Address :	1303, Rushikesh Apartment, Nr. Sarthana Jakat Naka, Surat – 395006, Gujarat, India
Date of Birth/Age :	04.08.1976
Qualification :	9^th
Experience :	3 Years
Date of Appointment :	27.06.2014
PAN No.:	AKVPB6454A

BUSINESS DETAILS

Line of Business :	Manufacturer of Art Silk Grey Cloth.
Exports :	--
Imports :	--
Terms :
Selling :	Credit (30 Days and 60 Days)
Purchasing :	Credit (30 Days)

GENERAL INFORMATION

Suppliers :

Reference:	NOTE DIVULGED
Name of the Person (with Designation):
Contact Number:
Since How Long Known:
Experience :
Maximum Limit Dealt:

Customers :

Reference:	NOTE DIVULGED
Name of the Person (with Designation):
Contact Number:
Since How Long Known:
Experience:
Maximum Limit Dealt:

· Wholesalers

No. of Employees :

6 (Approximately) (In Factory)

Bankers :

Bank Name:	State Bank of India
Branch:	Varachha, Surat, Gujarat, India
Name of the Person (with Designation):	Mr. Chaganbhai Darji (Joint Manager)
Contact Number:	Tel. No.: 91-261-2550526 Mob. No.: 91-7600024386
Name of Account Holder:	Pearl Fab
Account Number:	33983505907
Account Since (Date/ Year of A/c Opening):	22.07.2014
Average Balance Maintained (Optional):	--
Credit Facilities Enjoyed (CC/OD/Term Loan):	NA
Account Operation:	--
Remarks: As claimed by Mr. Chaganbhai Darji (Joint Manager), the subject having satisfactory track record for banking transaction.

Auditors :

Name :

Jignesh Korat and Associates

Chartered Accountants

Address :

F-5, Shreyas Diamond Centre, Mini Bazar, Varachha Road, Surat, Gujarat, India

Mobile No.:

91-9375018202

E-Mail :

jjkorat@gmail.com

Sister Concerns:

Name :	Star Fashion
Proprietor Name:	Shivlal U Rajani
Address :	10, 2^nd Floor, Madhav Industries, Kapodara, Surat – 395006, Gujarat, India
Line of Business :	Embroidery Job Work
Name :	Shree Sai Impex
Address :	315, Bhagyoday Industries, Magob, Surat – 395010, Gujarat, India
Line of Business :	Embroidery Job Work

CAPITAL STRUCTURE

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

FINANCIAL DATA

[all figures are in Rupees Millions]

NEW CONCERN

Note: Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

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	Yes
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	Yes
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

(RS. IN MILLIONS)

PARTICULARS	EXISTING	PROPOSED	TOTAL
COST OF PROJECT
Plant and Machinery	--	9.188	9.188
Land and Building	--	1.750	1.750
Other Fixed Assets	--	--	--
Total Capital cost project	10.938	10.938	10.938
Working Capital Margin	5.153	5.153	5.153
TOTAL COST OF PROJECT	16.091	16.091	16.091

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

MEANS OF FINANCE

(RS. IN MILLIONS)

PARTICULARS	EXISTING	PROPOSED	TOTAL
Capital	--	4.000	4.000
Term Loan	--	6.891	6.891
Cash Credit	--	3.000	3.000
Unsecured Loans/ Deposits	--	2.200	2.200
TOTAL MEANS OF FINANCE	--	16.091	16.091

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

STATEMENT OF DEBT SERVICE COVERAGE RATIO

(RS. IN MILLIONS)

PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20
	PROJECTION
Net Profit after tax	0.030	0.468	0.541	0.591	0.622	0.631
Add: Partner Interest and Remuneration	0.411	1.774	2.176	2.583	2.994	3.405
Add: Depreciation written off	0.345	1.327	1.128	0.958	0.815	0.692
Add: Interest on T.L. – Proposed	0.411	1.271	1.068	0.862	0.655	0.457
Funds Available to Service	1.197	4.840	4.913	4.995	5.085	5.184
Add: Interest on T.L. – Proposed	0.411	1.271	1.068	0.862	0.655	0.457
Principal Repayment - Proposed	--	1.276	1.531	1.531	1.531	1.021
Total Instalment	0.411	2.547	2.600	2.393	2.186	1.478
DSCR	2.91	1.90	1.89	2.09	2.33	3.51
Average DSCR	2.26
Interest Coverage Ratio (No.)	2.91	3.81	4.60	5.80	7.77	11.35

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

STATEMENT SHOWING PROFITABILTTY AND NET CASH ACCRUALS

(RS. IN MILLIONS)

PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20
	PROJECTION
INCOME
Sales / Job Work	3.923	16.062	16.431	16.800	17.169	17.538
Other Income	--	--	--	--	--	--
TOTAL	3.923	16.062	16.431	16.800	17.169	17.538
EXPENDITURES
Raw Material Consumption	1.962	8.031	8.215	8.400	8.585	8.769
Power and Fuel	0.182	0.667	0.682	0.697	0.712	0.727
Salaries and Wages	0.351	1.432	1.461	1.490	1.520	1.550
Other Manufacturing Expenses	0.118	0.482	0.493	0.504	0.515	0.526
Factory Costs	2.612	10.612	10.851	11.091	11.331	11.572
Cost of Production	2.612	10.612	10.851	11.091	11.331	11.572
Gross Profit	1.311	5.449	5.580	5.709	5.838	5.966
Selling and General Administration Expenses	0.100	0.400	0.425	0.450	0.475	0.500
Profit Before Interest and Depreciation	1.211	5.049	5.155	5.259	5.363	5.466
Interest on Bank Loan	0.411	1.271	1.068	0.862	0.655	0.457
Depreciation written off	0.345	1.327	1.128	0.958	0.815	0.692
Operating Profit	0.455	2.452	2.959	3.439	3.894	4.317
Interest and Remuneration to Partners	0.411	1.774	2.176	2.583	2.994	3.405
Net Profit Before tax	0.044	0.678	0.782	0.856	0.900	0.913
Less: Tax	0.014	0.209	0.242	0.265	0.278	0.282
Profit After Tax	0.030	0.468	0.541	0.591	0.622	0.631
Add: Depreciation	0.345	1.327	1.128	0.958	0.815	0.62
Net Cash Accruals	0.375	1.795	1.668	1.550	1.436	1.323

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

STATEMENT SHOWING PROJECTED BALANCE SHEET

(RS. IN MILLIONS)

PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20
	PROJECTION
LIABILITIES
Capital	--	4.441	6.484	8.951	11.826	15.091
Add: Addition	4.000	--	--	--	--	--
Add: Partner Interest and Remuneration	0.411	1.774	2.176	2.583	2.994	3.405
Add: Net Profit/ (Net) Loss	0.030	0.468	0.541	0.591	0.622	0.631
Less: Withdrawals	--	0.200	0.250	0.300	0.350	0.400
Closing Capital (A)	4.441	6.484	8.951	11.826	15.091	18.727
Term Loan	5.615	4.084	2.552	1.021	--	--
Unsecured Loans	2.200	2.200	2.200	2.200	2.200	2.200
Total Term Liabilities (B)	7.815	6.284	4.752	3.221	2.200	2.200
Installment due within one year	1.276	1.531	1.531	1.531	1.021	--
Cash Credit	3.000	3.000	3.000	3.000	3.000	3.000
Provision for Expenses	0.105	0.103	0.106	0.108	0.111	0.114
Creditors	0.347	0.350	0.358	0.366	0.374	0.382
Total Current Liabilities (C)	4.728	4.984	4.995	5.006	4.506	3.496
TOTAL [A+B+C]	16.984	17.751	18.698	20.052	21.797	24.423
ASSETS
Fixed Assets (Gross Cost)	10.938	10.938	10.938	10.938	10.938	10.938
Depreciation to date	0.345	1.671	2.799	3.757	4.572	5.264
Net Fixed Assets [D]	10.593	9.267	8.139	7.181	6.366	5.674
Capital work-in-progress	--	--	--	--	--	--
Long Term Investments	--	1.800	3.700	5.800	8.100	11.200
Long Term Investments [E]	--	1.800	3.700	5.800	8.100	11.200
Receivables	3.269	3.300	3.376	3.452	3.528	3.604
Inventories	1.308	1.320	1.350	1.381	1.411	1.442
Other Current Assets	0.814	0.989	0.982	1.013	1.092	1.129
Cash and Bank Balances	1.000	1.075	1.150	1.225	1.300	1.375
Total Current Assets [F]	6.391	6.684	6.859	7.071	7.331	7.549
TOTAL [D+E+F]	16.984	17.751	18.698	20.052	21.797	24.423

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

STATEMENT SHOWING IMPORTANT FINANCIAL RATIOS

(RS. IN MILLIONS)

PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20
	PROJECTION
LIQUIDITY RATIOS
Current Assets	6.391	6.684	6.859	7.071	7.331	7.549
Current Liabilities	4.728	4.984	4.995	5.006	4.506	3.496
Net Current Assets	1.663	1.701	1.864	2.065	2.825	4.053
Current Ratio	1.35	1.34	1.37	1.41	1.63	2.16
SOLVENCY RATIOS
Tangible Worth i.e. Equity	4.441	6.484	8.951	11.826	15.091	18.727
Unsecured Loans	2.200	2.200	2.200	2.200	2.200	2.200
Other Term Liabilities	5.615	4.084	2.552	1.021	--	--
Total Outside Liabilities	12.543	11.267	9.747	8.227	6.706	5.696
TOL/Net Worth (No. of Times)	2.82	1.74	1.09	0.70	0.44	0.30
Debt Equity Ratio (No. of Times)
Unsecured Loans as Debt	1.76	0.97	0.53	0.27	0.15	0.12
Unsecured Loans as Equity	0.85	0.47	0.23	0.07	--	--
PROFIBILITY RATIOS
Sales/ Revenue	3.923	16.062	16.431	16.800	17.169	17.538
Gross Profit	1.311	5.449	5.580	5.709	5.838	5.966
Net Profit After Tax	0.030	0.468	0.541	0.591	0.622	0.631
Gross Profit Ratio	33.42	33.93	33.96	33.98	34.00	34.02
Net Profit Ratio	0.78	2.92	3.29	3.52	3.62	3.60
RETURN ON FUND EMPLOYED
Equity Fund	4.441	6.484	8.951	11.826	15.091	18.727
Capital Employed (Equity Fund + Term Liabilities)	12.256	12.768	13.703	15.047	17.291	20.927
Profit After Tax (PAT)	0.030	0.468	0.541	0.591	0.622	0.631
PAT + Interest on Term Liabilities	0.442	1.739	1.609	1.453	1.277	1.087
Return on Equity (ROE)	0.68%	7.22%	6.04%	5.00%	4.12%	3.37%
Return on Capital Employed (ROCE)	3.60%	13.62%	11.74%	9.66%	7.38%	5.20%
TURNOVER RATIO
Sales/ Revenue	3.923	16.062	16.431	16.800	17.169	17.538
Purchases	2.079	8.513	8.708	8.904	9.100	9.295
Debtors	3.269	3.300	3.376	3.452	3.528	3.604
Creditors	0.347	0.350	0.358	0.366	0.374	0.382
Material Consumption (In Qty)	--	--	--	--	--	--
Raw Material (In Qty)	--	--	--	--	--	--
WIP (In Qty)	--	--	--	--	--	--
Projected Production	56044	229451	234725	240000	245275	250549
Finished Goods (In Qty)	--	--	--	--	--	--
Debtors Credit Period (In Days)	75	75	75	75	75	75
Creditors Payment Period (In Days)	15	15	15	15	15	15
Inventory Holding Period (In Days)	60	60	60	60	60	60

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

BREAK EVEN ANALYSIS

(RS. IN MILLIONS)

PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20
	PROJECTION
Installed Capacity	65934	263736	263736	263736	263736	263736
Sales/ Revenue	3.923	16.062	16.431	16.800	17.169	17.538
Variable Costs	3.435	13.657	14.096	14.536	14.980	15.433
Contribution	0.489	2.404	2.335	2.264	2.189	2.105
Total Fixed Costs	0.445	1.727	1.553	1.408	1.290	1.192
Cash Fixed Costs	0.100	0.400	0.425	0.450	0.475	0.500
Profit Volume Ratio	12.45%	14.97%	14.21%	13.48%	12.75%	12.00%
Cash Break Even Sales	0.803	2.672	2.991	3.339	3.725	4.166
Cash Margin of Safety	3.120	13.389	13.440	13.461	13.444	13.373
Break Even Sales	3.570	11.534	10.926	10.449	10.113	9.935
Margin of Safety	0.353	4.527	5.505	6.351	7.056	7.603
Cash Break Even (% of Inst.)	17.40%	14.47%	16.20%	18.08%	20.18%	22.57%
Break Even Sales (% of Inst.)	77.34%	62.48%	59.18%	56.60%	54.78%	53.82%

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

CASH FLOW STATEMENT

(RS. IN MILLIONS)

PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20
	PROJECTION
SOURCES
Cash from Operational Activities
Net Profits after tax	0.030	0.468	0.541	0.591	0.622	0.631
Partner Interest and Remuneration	0.411	1.774	2.176	2.583	2.994	3.405
Interest (treated Separately)	0.411	1.271	1.068	0.862	0.655	0.457
Depreciation	0.345	1.327	1.128	0.958	0.815	0.692
(Increase)/ Decrease in C.A. other than cash	(5.391)	(0.219)	(0.099)	(0.137)	(0.185)	(0.143)
Increase/ (Decrease) in C.L.	0.452	0.001	0.011	0.011	0.011	0.011
TOTAL (A)	(3.742)	4.622	4.824	4.868	4.911	5.052
Cash from Financial Activities
Capital Introduced	4.000	--	--	--	--	--
Term Loan Acquired	6.891	--	--	--	--	--
Unsecured Loan Acquired	2.200	--	--	--	--	--
Cash Credit	3.000	--	--	--	--	--
Capital Subsidy – MMS @15% Received (Existing)	--	--	--	--	--	--
TOTAL (B)	16.091	--	--	--	--	--
Cash from Investment activities
Fixed Assets Disposed off	--	--	--	--	--	--
Long term Invest. Disposed off	--	--	--	--	--	--
TOTAL (C)	--	--	--	--	--	--
TOTAL CASH FLOW (A+B+C)	12.349	4.622	4.824	4.868	4.911	5.052
APPLICATION
Outflow from Operational activities
Loss from Operation	--	--	--	--	--	--
TOTAL (C)	--	--	--	--	--	--
Outflow from Financial Activities
Withdrawals	--	0.200	0.250	0.300	0.350	0.400
Term Loan Repaid	--	1.276	1.531	1.531	1.531	1.021
Interest Paid on Term Loan	0.411	1.271	1.068	0.862	0.655	0.457
TOTAL (D)	0.411	2.747	2.850	2.693	2.536	1.878
Outflow from Investment Activities
Fixed Assets Purchased	10.938	--	--	--	--	--
Investment in Long term Sources	--	1.800	1.900	2.100	2.300	3.100
TOTAL (E)	10.938	1.800	1.900	2.100	2.300	3.100
TOTAL CASH OUTFLOW (C + D + E)	11.349	4.547	4.750	4.793	4.836	4.978
NET EFFECT
Cash Surplus/ (Deficit) [Inflow minus Outflow]	1.000	0.075	0.075	0.075	0.075	0.075
Add: Opening Cash and Bank	--	1.000	1.075	1.150	1.225	1.300
Closing Cash and Bank	1.000	1.075	1.150	1.225	1.300	1.375

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

ASSESSMENT OF WORKING CAPITAL REQUIREMENTS

OPERATING STATEMENT

(RS. IN MILLIONS)

SR. NO.	PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19
		Estimated	Projected	Projected	Projected	Projected
	Operating Statement
	i. Domestic Sale	3.923	16.062	16.431	16.800	17.169
	ii. Export Sale	--	--	--	--	--
1	Total Gross Sales	3.923	16.062	16.431	16.800	17.169
2	Less: Excise Duty	--	--	--	--	--
3	Net Sales (1-2)	3.923	16.062	16.431	16.800	17.169
4	Growth in Sales	0%	309%	2%	2%	2%
	Cost of Sales
5	a. Raw Material (Imported)	--	--	--	--	--
	b. Raw Material (Indigenous)	1.962	8.031	8.215	8.400	8.585
	c. Packing Material	--	--	--	--	--
5.a.	Job Work	--	--	--	--	--
6.	Power and Fuel	0.182	0.667	0.682	0.697	0.712
7.	Wages and Salary (Out Side manuf. Expenses)	0.351	1.432	1.461	1.490	1.520
8.	Other Manufacturing Expenses	0.118	0.482	0.493	0.504	0.515
9.	Office Expenses	--	--	--	--	--
10.	Depreciation	0.345	1.327	1.128	0.958	0.815
	Sub Total	2.957	11.939	11.979	12.049	12.146
11.	Add: Opening Stock	--	--	--	--	--
	Sub Total	2.957	11.939	11.979	12.049	12.146
12.	Deduct: Closing Stock	--	--	--	--	--
	Cost of Production	2.957	11.939	11.979	12.049	12.146
13.	Add: Opening Stock of Goods	--	--	--	--	--
	Sub Total	2.957	11.939	11.979	12.049	12.146
14.	Deduct: Closing Stock of Goods	--	--	--	--	--
	Sub Total (Total Cost of Sales)	2.957	11.939	11.979	12.049	12.146
15.	Gross Profit	1.311	5.449	5.580	5.709	5.838
	Gross Profit/ Sales	33%	34%	34%	34%	34%
16.	Selling and Admn. Expenses (interest on Remuneration to Partners)	0.411	1.774	2.176	2.583	2.994
17.	Administrative Expenses	0.100	0.400	0.425	0.450	0.475
	Sub Total	3.468	14.113	14.580	15.082	15.615
18.	Operating Profit Before Interest	0.455	1.948	1.851	1.718	1.555
	a. Interest on CC	0.101	0.405	0.405	0.405	0.405
	b. Interest on TL	0.310	0.866	0.663	0.457	0.250
	c. Other Interests	--	--	--	--	--
19.	Total Interest	0.411	1.271	1.068	0.862	0.655
20.	Operating Profit after Interest	0.044	0.678	0.782	0.856	0.900
21.	Add: Other Non-Operating Income
	a. Interest/ Dividend/ Royalties, etc.	--	--	--	--	--
	b. Other Income	--	--	--	--	--
	Sub Total	--	--	--	--	--
22	Deduct other Non-Operating Expenses
	a. Interest/ Dividend/ Royalties, etc.	--	--	--	--	--
	b. Other Expenses	--	--	--	--	--
	c. Intangibles written off - 1	--	--	--	--	--
	Sub Total	--	--	--	--	--
23.	Net of Other Non-Operating Income/ Expenses	--	--	--	--	--
24.	Profit/ (Loss) Before Tax (PBT)	0.044	0.678	0.782	0.856	0.900
25.	Provision for Taxes	0.014	0.209	0.242	0.265	0.278
26.	Profit/ (Loss) After Tax (PAT)	0.030	0.468	0.541	0.591	0.622
27.	Cash Accruals	0.375	1.795	1.668	1.550	1.436
28.	Drawing/ Dividend	--	--	--	--	--
29.	Retained Profit	0.030	0.468	0.541	0.591	0.622
30.	Retained Cash Profits	0.375	1.795	1.668	1.550	1.436
31.	RM Content in Sales	50%	50%	50%	50%	50%
32.	PBDIT/ Sales	20.39%	20.39%	18.12%	15.93%	13.80%
33.	Operating Profit/ Sales	1.12%	4.22%	4.76%	5.10%	5.24%
34.	PBT/ Sales	1.12%	4.22%	4.76%	5.10%	5.24%
35.	PAT/ Sales	0.78%	2.92%	3.29%	3.52%	3.62%
36.	Cash Accruals/ Sales	9.56%	11.17%	10.15%	9.23%	8.37%

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

ANALYSIS OF BALANCE SHEET

(RS. IN MILLIONS)

	PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19
		Estimated	Projected	Projected	Projected	Projected
	LIABILITIES
	CURRENT LIABILITIES
1	Short term loans from applicant bank including BP and BD	3.000	3.000	3.000	3.000	3.000
	Short term loans from banks including BP and BD	--	--	--	--	--
	Sub Total (A)	3.000	3.000	3.000	3.000	3.000
2.	Short term borrowings from others	--	--	--	--	--
3.	Sundry Creditor (Trade)	0.347	0.350	0.358	0.366	0.375
4.	Advance payment from customers	--	--	--	--	--
5.	Provision for Expenses	0.105	0.103	0.106	0.108	0.111
6.	Dividend Payable	--	--	--	--	--
7.	Other Statutory Liabilities (Due within one year)	--	--	--	--	--
8.	Overdue Term Liabilities	--	--	--	--	--
9.	Instalments of Term Loan/ DPGs/ Deposits/ Debentures Due within next year	1.276	1.531	1.531	1.531	1.531
10.	Other Current Liabilities and Provisions (Due within one year)	--	--	--	--	--
11.	Sub Total (B)	1.728	1.984	1.995	2.006	1.506
12.	TOTAL CURRENT LIABILITIES	4.728	4.984	4.995	5.006	4.506
	TERM LIABILTIES
13.	Debentures (Not maturing within one year)	--	--	--	--	--
14.	Tern Loan from Bank (less next year instalments)	5.615	4.084	2.552	1.021	--
15.	Term Loan from Other Banks/ Inst. (Excluding Instalment due next year)	--	--	--	--	--
16	Deferred Payments (Excluding Instalment due next year)	--	--	--	--	--
17.	Term Deposits (Excluding Instalment due next year)	--	--	--	--	--
18.	Other Term Liabilities	2.200	2.200	2.200	2.200	2.200
19.	TOTAL TERM LIABILITIES	7.815	6.284	4.752	3.221	2.200
20.	TOTAL OF OUTSIDE LIABILITIES	12.543	11.267	9.747	8.227	6.706
	NET WORTH
21.	Capital	--	4.441	6.484	8.951	11.826
22.	General Reserve	--	--	--	--	--
23.	Revaluation Reserve	--	--	--	--	--
24.	Net Surplus	0.441	2.243	2.717	3.175	3.616
25.	Drawing/ Addition	4.000	(0.200)	(0.250)	(0.300)	(0.350)
26.	NET WORTH	4.441	6.484	8.951	11.826	15.091
27.	TOTAL LIABILITIES	16.984	17.752	18.698	20.052	21.797
	ASSETS
	CURRENT ASSETS
28	Cash and Bank Balance	1.000	1.075	1.150	1.225	1.300
29	Government and Other Trustee Securities	--	--	--	--	--
30	Fixed Deposits with Banks and Investment	--	--	--	--	--
31	Domestic Receivables including BP/BD	3.269	3.300	3.376	3.452	3.528
32	Export Receivables including BP/BD	--	--	--	--	--
33	Deferred Receivables (Due within one year)	--	--	--	--	--
34	Imported Raw Material	--	--	--	--	--
35	Indigenous Raw Material	--	--	--	--	--
36	Stock in Process	1.308	1.320	1.350	1.381	1.411
37	Finished Goods	--	--	--	--	--
38	Imported Consumables	--	--	--	--	--
39	Indigenous Consumables	--	--	--	--	--
40	Advances to Suppliers	--	--	--	--	--
41	Net Advance Payment of Taxes (If Positive)	--	--	--	--	--
42	Other Current Assets	0.814	0.989	0.982	1.013	1.092
43	TOTAL CURRENT ASSETS	6.391	6.684	6.859	7.071	7.331
	FIXED ASSETS
44	Gross Block (Land and Building, Machinery)	10.938	10.938	10.938	10.938	10.938
45	Add: Capital Expenditure in Work-in-Process	--	--	--	--	--
46	Depreciation to Date	0.345	1.671	2.799	3.757	4.572
47	Net Block	10.593	9.267	8.139	7.181	6.366
48	OTHER NON CURRENT ASSETS
	a. Investments in Sub. Cos./ Affiliates	--	--	--	--	--
	b. Investment in Others	--	1.800	3.700	5.800	8.100
	c. Advance to Suppliers of Capital d. Goods and Contractors	--	--	--	--	--
	d. Deferred Receivables (Maturing after a year)	--	--	--	--	--
	e. Other Non-Current Investments	--	--	--	--	--
	f. Non Consumable Stores and Spares	--	--	--	--	--
	TOTAL OTHER NON CURRENT ASSETS	--	1.800	3.700	5.800	8.100
49	Intangible Assets
	a. Preliminary Expenses	--	--	--	--	--
	b. Deffered Revenue Expenditures	--	--	--	--	--
	c. Other Intangibles (Patents, Goodwill, etc.)	--	--	--	--	--
	Total Intangible Assets	--	--	--	--	--
50	TOTAL ASSETS	16.984	17.751	18.698	20.052	21.797
51	TANGIBLE NET WORTH (TNW)	4.441	6.484	8.951	11.826	15.091
52	NET WORKING CAPITAL (NWC)	1.663	1.701	1.864	2.065	2.825
	Movement of TNW
	Opening TNW	--	4.441	6.484	8.951	11.826
	Plough bank of Profit	0.030	0.468	0.541	0.591	0.622
	Increase in Capital/ Reserves	4.411	1.574	1.926	2.283	2.644
	Intangibles written off	--	--	--	--	--
	Less Increase in Revaluation Reserve	--	--	--	--	--
	Closing TNW	4.441	6.484	8.951	11.826	15.091
	Current Ratio
	Debt/ Equity	1.35	1.34	1.37	1.41	1.63
	TOL/ Equity	1.76	0.97	0.53	0.27	0.15
	Current Assets/ Tangible Assets	0.38	0.38	0.37	0.35	0.34
	ROCE (PBDIT incl. other Income/ TTA)	0.05	0.18	0.16	0.13	0.11
	Inventory + Receivables as days of net sales	426	105	50	105	105

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

WORKING CAPITAL / BANK BORROWING ASSESSMENTS

(RS. IN MILLIONS)

PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19
	Estimated	Projected	Projected	Projected	Projected
WORKING CAPITAL ASSESSMENT
Stock of Imported RM – Days Consumption	--	--	--	--	--
Stock of Indigenous RM – Days Consumption	--	--	--	--	--
Imported Consumables – Days Consumption	--	--	--	--	--
Indigenous Consumables – Days Consumption	--	--	--	--	--
Stock-in-Process – Days of Cost of Production	161.00	40.00	41.00	42.00	42.00
Finished Goods – Days Cost of Sales	--	--	--	--	--
Total Inventory	1.308	1.320	1.350	1.381	1.411
Total Inventory/ Sales (Days)	30	30	30	30	30
Domestic Receivables (Days Gross Dom Sales)	75	75	75	75	75
Export Receivables (Days Exports)	--	--	--	--	--
Total Receivables	3.269	3.300	3.376	3.452	3.528
Total Receivables/ Gross Sales (Days)	75	75	75	75	75
Creditors – Days Consumption	16	16	16	16	16
Total Current Assets	6.391	6.684	6.859	7.071	7.331
Financed by
Sundry Creditor % of Current Assets	5.42%	5.23%	5.22%	5.17%	5.10%
Other Current Liabilities % of Current Assets	21.62%	24.45%	23.87%	23.19%	15.44%
Bank Finance % of Current Assets	46.94%	44.88%	43.74%	42.43%	40.92%
NWC % to Current Assets	26.02%	25.44%	27.18%	29.21%	38.53%
By MPBS Method
Total Current Assets	6.391	6.684	6.859	7.071	7.331
Other Current Liabilities	1.726	1.984	1.995	2.006	1.506
Working Capital Gap	4.663	4.701	4.864	5.065	5.825
Net Working Capital	1.663	1.701	1.864	2.065	2.825
25% Margin over Current Assets	1.600	1.700	1.700	1.800	1.800
ITEM 3-5	3.100	3.000	3.100	3.300	4.000
Bank Finance	3.000	3.000	3.000	3.000	3.000

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

FUND FLOW ANALYSIS

(RS. IN MILLIONS)

SR. NO.	PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19
		Estimated	Projected	Projected	Projected	Projected
1.	LONG TERM SOURCES
	Profit after tax	0.030	0.468	0.541	0.591	0.622
	Depreciation	0.345	1.327	1.128	0.958	0.815
	Intangibles written off	--	--	--	--	--
	Increase in capital and reserves	4.411	1.574	1.926	2.283	2.644
	Increase in term liability	7.815	--	0.000	0.000	0.510
	Decrease in fixed assets	--	--	--	--	--
	Decrease in other non current assets	--	--	--	--	--
		12.601	3.369	3.595	3.833	4.591
2.	LONG TERM USES
	Net loss	--	--	--	--	--
	Increase in intangibles	--	--	--	--	--
	Decrease in capital and reserves/ Share buyback	--	--	--	--	--
	Term loan repayments	0.000	1.276	1.531	1.531	1.531
	Unsecured loan repayment	--	--	--	--	--
	Increase in fixed assets	10.938	--	--	--	--
	Increase in non-current assets	--	1.800	1.900	2.100	2.300
	Increase in intangibles	--	--	--	--	--
	Dividend paid/ Drawing	--	--	--	--	--
		10.938	3.076	3.431	3.631	3.831
	Surplus / Deficit	1.663	0.293	0.163	0.202	0.759
1	SHORT TERM SOURCES
	Increase in bank borrowings	3.000	--	--	--	--
	Increase in other current liability	1.728	0.001	0.011	0.011	--
	Decrease in receivables	--	--	--	--	--
	Decrease in Cash/ Deposits/ Govt. Sec.	--	--	--	--	--
	Decrease in other current assets	--	--	0.007	--	--
		4.728	0.001	0.018	0.011	--
2	SHORT TERM USES
	Increase in inventory	1.308	0.012	0.030	0.030	0.030
	Increase in receivables	3.269	0.031	0.076	0.076	0.076
	Increase in Cash/ Deposits/ Govt. Sec.	1.000	0.075	0.075	0.075	0.075
	Increase in other current liabilities	0.814	0.175	--	0.031	0.079
	Decrease in bank borrowings	--	--	--	--	--
		6.391	0.294	0.181	0.212	0.760
	Summary of Fund Flow Analysis
	i) Long term sources	12.601	3.369	3.595	3.833	4.591
	ii) Long term uses	10.938	3.076	3.431	3.631	3.831
	Surplus/ Deficit (i-ii)	1.663	0.293	0.163	0.202	0.759
	iii) Short term sources	4.728	0.001	0.018	0.011	--
	iv) Short term uses	6.391	0.294	0.181	0.212	0.760
	Surplus/ Deficit (iii-iv)	(1.663)	(0.293)	(0.163)	(0.201)	(0.760)

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

RATIO ANALYSIS

(RS. IN MILLIONS)

SR. NO.	PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19
		Estimated	Projected	Projected	Projected	Projected
	RATIOS
1	Growth in sales	0%	309%	2%	2%	2%
2	Gross profit ratio	33%	34%	34%	34%	34%
3	PBDIT/ Sales	1.12%	4.22%	4.76%	5.10%	5.24%
4	Operating profits/ Sales	1.12%	4.22%	4.76%	5.10%	5.24%
5	PBT/ Sales	1.12%	4.22%	4.76%	5.10%	5.24%
6	PAT/ Sales	0.78%	2.92%	3.29%	3.52%	3.62%
7	Cash Accruals/ Sales	9.56%	11.17%	10.15%	9.23%	8.37%
8	Sales/ Equity	0.88	2.48	1.84	1.42	1.14
9	Sales/ TTA	0.23	0.90	0.88	0.84	0.79
10	Interest Coverage (Interest/ PBDIT)	51.42%	38.80%	35.87%	32.20%	27.64%
11	PBDIT/ Interest (Times)	1.94	2.58	2.79	3.11	3.62
12	Deferred Debt/ Equity	1.76	0.97	0.53	0.27	0.15
13	TOL/ Equity	2.82	1.74	1.09	0.70	0.44
14	Current Ratio (CA/ CL)	1.35	1.34	1.37	1.41	1.63
15	Current Ratio excluding TL Instalments	1.85	1.94	1.98	2.04	2.10
16	CA/ TTA (%)	37.63%	37.66%	36.68%	35.26%	33.63%
17	Inventory + Receivables as days of net sales	426	105	105	105	105
18	Bank Borrowings/ Current Assets	46.94%	44.88%	43.74%	42.43%	40.92%
19	RM content in Sales	50.00%	50.00%	50.00%	50.00%	50.00%
20	ROCE (PBDIT incl. Other Income/ TTA)	0.05	0.18	0.16	0.13	0.11
21	Debt Service Coverage Ratio Calculations
	Cash Accruals	0.375	1.795	1.668	1.550	1.436
	Interest on TL/ Deffered Loans	0.411	1.271	1.068	0.862	0.655
	Repayment Obligations of TL	--	1.276	1.531	1.531	1.531
	Repayment of other deferred Loans	--	--	--	--	--
	Total Repayment	0.411	2.547	2.600	2.393	2.186
	Net Debt Service Coverage Ratio (DSCR)	--	1.41	1.09	1.01	0.94
	Gross Debt Service Coverage Raito (DSCR)	1.91	1.20	1.05	1.01	0.96
22	Security Coverage Ratio
	Net Block	10.593	9.267	8.139	7.181	6.366
	Term Loan outstanding (Including Instalments)	6.891	5.615	4.084	2.552	1.021
	Security Cover Available (NB-TL/NB)	35%	39%	50%	64%	84%
23	Security Cover including Collateral Security
	Security Cover Available (NB + Collateral + TL)/NB	35%	39%	50%	64%	84%

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

KEY INDICATORS

(RS. IN MILLIONS)

PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19
	Estimated	Projected	Projected	Projected	Projected
Net Sales	3.923	16.062	16.431	16.800	17.169
Operating Profit	0.044	0.678	0.782	0.856	0.900
(Net) Other Income	--	--	--	--	--
PBDIT/ Sales	1.12%	4.22%	4.76%	5.10%	5.24%
PBT/ Sales	1.12%	4.22%	4.76%	5.10%	5.24%
PAT	0.030	0.468	0.541	0.591	0.622
PAT/ Net Sales	0.78%	2.92%	3.29%	3.52%	3.62%
Cash Accruals	0.375	1.795	1.668	1.550	1.436
Cash Accruals/ Sales	9.56%	11.17%	10.15%	9.23%	8.37%
Paid up Capital	--	4.441	6.484	8.951	11.826
TNW	4.441	6.484	8.951	11.826	15.091
TOL/ TNW	2.82	1.74	1.09	0.70	0.44
C/R	1.35	1.34	1.37	1.41	1.63
C/R excluding T/L Instalments due in 1 year	1.85	1.94	1.98	2.04	2.10
Net Sales/ TTA (Times)	0.23	0.90	0.88	0.84	0.79
PBT/TTA (%)	0.26%	3.82%	4.18%	4.27%	4.13%
Operating Costs/ Sales (%)	98.88%	95.78%	95.24%	94.90%	94.76%
Bank Finance/ Current Assets (%)	46.94%	44.88%	43.74%	42.43%	40.92%
Inv + Rec./ N.S. (Days)	426	105	105	105	105
NWC/ CA (%)	26.02%	25.44%	27.18%	29.21%	38.53%

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

PROJECT REPORT

INTRODUCTION

Subject is a partnership firm. The firm has four partners Kishorbhai Padmabhai Nakrani, Kantibhai Manjibhai Gangani, Shivlal Ukabhai Rajani, Sharadbhai Bhikhabhai Bharodiya. They are doing same business line since more than 3 years and their relatives are also engaged in same business. Promoters are having good financial background as well as good contact in the textile market. Hence promoter is having environment and experience to expansion own unit. And now he is interested to expansion their business with installation of eight china made imported Rapier Loom Machines.

Surat is a hub of textile industries. The textile industries having developed in Surat since last 100 years. The stepwise development in textile industries earns lots of profit to Surat based textile industrialist. Surat having a typical characteristic for the development of textile industries. 24 hours continuous production for all the years is a main and prime factor for the development of the Surat textile industries. The industries having a base with more than 100 years. Hence Surat Textile sector have been shown various ups and down in this industries in a crucial time. Surat textile sector having characteristic is to change/ modify/ upgrade their technical skill time to time and as per the requirements. They added step-by-step value addition in this sector and developed themselves for long run. Initially manually operated looms were installed at Surat. Now a day’s power looms, automatic rapier looms, Air-Jet, Water-Jet Looms have taken the place of manually operated looms. At the same time Two-for-one (TFO) machines, texturizing machines, crimping machines have also take the place of old designed Twisting Machines, from the raw yarn, Surat based textile sector producing high quality silk sarees and dress material in Surat.

Surat’s textile sector always thinks for innovation and creativity and adopted various new production techniques/ installing new machine for value addition.

Now a days Surat based textile sector is preparing for a technical up gradation to meet with challenges after opening of GATE karar. The GATE will open for entire global market from 31 December, 2005. Hence the export quota system will be denied. On the opening of entire global gate after the effect of GATE karar. There are huge chances for weaving value added product in the international market.

To meet wit the challenges of international market the promoters of the project have decided to produce some weaving value added product in textile sector this will be possible after installation of imported rapier loom machines for this project. This rapier loom machine added the quality of weaving the product by more than 100%, hence there is a good scope of weaving-based project in Surat.

Partners are having adequate experience of the textile business. Looking to the rich experience and contacts of the promoters it is presume that unit will run very smoothly.

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

NETWORTH STATEMENT

MR. KISHORBHAI PADMABHAI NAKRANI

(RS. IN MILLIONS)

(AS ON 03.11.2014)

TOTAL VALUE OF IMMOVABLE PROPERTY

NATURE OF PROPERTY	BOOK VALUE	MARKET VALUE
161, Shiv Shankar parvati Society	2.000	9.000
TOTAL (A)		9.000

TOTAL VALUE OF OTHER ASSETS

NATURE OF ASSET	BOOK VALUE	MARKET VALUE
Motor Cycle	0.017	0.017
Investment	0.726	0.726
TOTAL (B)		0.743

TOTAL LIABILITIES

BORROWED FROM	AMOUNT	SECURITIES OFFERED	PURPOSE	O/S AS ON DATE
The Varachha Co-operative Bank Limited	1.950	house	House Purchase	1.293
TOTAL (C)				1.293

NETWORTH [A+B-C]

RS. 8.450 MILLIONS

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

NETWORTH STATEMENT

MR. KANTIBHAI MANJIBHAI GANGANI

(RS. IN MILLIONS)

(AS ON 03.11.2014)

TOTAL VALUE OF IMMOVABLE PROPERTY

NATURE OF PROPERTY	BOOK VALUE	MARKET VALUE
19, Sarita Vihar Society (53.33 Sq. Yard)	0.450	4.000
31, Surbhai Soc, Surat (56 Sq. Yard)	1.800	4.500
G-38, Diamond World, Mini Bazar, Surat (222 Sq.ft.)	0.354	1.900
5, Ekta Row House, Surat (76 Sq. Yard)	2.600	6.000
Plant and Machinery	0.600	0.600
TOTAL (A)		17.000

TOTAL VALUE OF OTHER ASSETS

NATURE OF ASSET	BOOK VALUE	MARKET VALUE
Gold Ornaments	0.196	0.196
Motor Car and Vehicle	0.491	0.491
Investment	0.008	0.008
TOTAL (B)		0.695

TOTAL LIABILITIES

BORROWED FROM	AMOUNT	SECURITIES OFFERED	PURPOSE	O/S AS ON DATE
ICICI Bank Limited	0.450	Car	Car Purchase	0.321
HDB Finance	1.690	Property	Business	1.476
L & T Finance	4.800	Property	House Purchase	4.741
HDB	0.124	Gold	--	0.099
TOTAL (C)				6.637

NETWORTH [A+B-C]

RS. 11.058 MILLIONS

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NETWORTH STATEMENT

MR. SHIVLAL UKABHAI RAJANI

(RS. IN MILLIONS)

(AS ON 03.11.2014)

TOTAL VALUE OF IMMOVABLE PROPERTY

NATURE OF PROPERTY	BOOK VALUE	MARKET VALUE
Flat at B-7, 108 Vrajbhumi Sector-1, Sarthana Jakatnaka, Surat (815 Sq.ft.)	0.663	2.500
356, RJD Textile Park, Surat (249 Sq. Yard, G+1)	2.049	7.000
Plant and Machinery at Surat	1.931	1.931
TOTAL (A)		11.431

TOTAL VALUE OF OTHER ASSETS

NATURE OF ASSET	BOOK VALUE	MARKET VALUE
Motor Car	0.534	0.534
TOTAL (B)		0.534

TOTAL LIABILITIES

BORROWED FROM	AMOUNT	Purpose	Book Value as on 31.03.2014	O/S AS ON DATE
Bank of Baroda	Car		Car Purchase	0.341
TOTAL (C)				0.341

NETWORTH [A+B-C]

RS. 11.624 MILLIONS

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NETWORTH STATEMENT

MR. SHARADBHAI B. BHARODIYA

(RS. IN MILLIONS)

(AS ON 03.11.2014)

TOTAL VALUE OF IMMOVABLE PROPERTY

NATURE OF PROPERTY	BOOK VALUE	MARKET VALUE
E-1303 Rushikesh Apartment, Surat (1300 Sq.ft.)	0.734	4.700
Plant and Machinery	0.200	0.200
TOTAL (A)		4.900

TOTAL VALUE OF OTHER ASSETS

NATURE OF ASSET	BOOK VALUE	MARKET VALUE
Nil	0.000	0.000
TOTAL (B)		0.000

TOTAL LIABILITIES

BORROWED FROM	AMOUNT AND SECURITIES	PURPOSE	O/S AS ON DATE
--	--	--	Nil
TOTAL			Nil

NETWORTH [A+B-C]

Rs. 4.900 Millions

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VALUATION REPORT

GENERAL DETAILS

Purpose for which valuation is made

To Asses fair market value of Bank of India, Gopipura Branch, Surat

Date as on which valuation is made

05/11/2014

Name of the Allote

Pearl Fab. Partner

Kishorebhai Padmabhai Nakrani

If the property is under ownership/ co-owners, share of each such owner are the undivided?

Individual

Brief description of the property

Industrial land with shade type property

Location, Street, Ward No.

Plot No. P/37, Sayan Textile Park, Nera RJD Park, Surat Hazira Road, Ichchapore, Surat, Gujarat, India

Survey/ Plot No. of land

R. S. No. 55 Paikee, 56, 60/1, 60/2, 59, 61, 62, 63, 64, 65 paikee, 66 paikee, 67, 69 paikee, 70 paikee, 71 + 69, 71 + 69/4, 72 + 73 + 74 + 75 paikee, 96 paikee, 97 paikee, 98 paikee, 99 + 100 + 101 + 102, 103, 106, 104 + 105 paikee, 170 paikee, 112 paikee, 113 paikee, 114, 115/1, 115/2, 116, 117 + 118 + 119 paikee, 127 paikee, 128 paikee, 126 paikee, 149 + 150/1, 147 + 148 + 146/1/paikee, 151 paikee, Moje-Ichchapore, Hazira-Adajan Road, Tal-Choryasi, Surat, Gujarat, India.

Is the property situated in the Residential/ Commercial/ Mixed Area/ Indus trial area?

Industrial Area

Classification of Locality – High class/ Middle class/ Poor class

Industrial Class

Proximity to civic amenities like School, Hospital, offices, markets, cinema etc

All amenties are available at distance

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

By Road Transportation

LAND

Area of land supported by documentary proof, dimensions and physical features

Land Area: 189.04 Smt. Or 226 Sq. Yds.

Roads, streets of lanes on which the land is abutting

Plot No. P/37, Sayan Textile Park, Nera RJD Park, Surat Hazira Road, Ichchapore, Surat, Gujarat, India

If leasehold, the surname of lessor/ lessee, nature of lease, dates of commencement and termination of lease and terms of renewal of lease

(i) Initial Premium

(ii) Ground rent payable per annum

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

As per lease deed

Is there any restrictive covenant in regard to use of land?

As per lease deed

Are there any agreements of easements?

As per lease deed

Does the land fall in an area included in any town planning plan of govt. or any statutory body?

As per lease deed

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

As per lease deed

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

As per lease deed

IMPROVEMENTS

Furnish technical details of the building on a separate sheet

As per technical details

(a) Is the building owner – occupied / tenanted/ both?

(b) If party owner-occupied, specify portion and extent of area under owner occupation

Occupied by Allote

N.A.

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

N.A.

RENTS

(i) Names of tenant/ lessees/ licensees, etc.

(ii) Portion in their occupation

(iii) Monthly or annual rent/ compensation/ licence fee, etc. paid by each

(iv) Gross amount received for the whole property

Not Applicable

Are any of the occupants related to, or close business associates, of the owner?

N.A.

Is separate amount being recovered for the use of fixtures, like fans, geysers, refrigeration’s, cooking ranges, built-in wardrobes, etc. or for service charges? If so, give details

N.A.

Give details of water and electricity charges, if any, to be borne by the owner

N.A.

Has the tenant to bear the whole or part of the cost of repairs and maintenance? Give Particulars

N.A.

If a lift is installed, who has to bear the cost of maintenance and operation owner or tenant?

N.A.

If a pump is installed, who has to bear the cost of maintenance and operation - owner or tenant?

N.A.

Who has to bear the cost of electricity charges for lighting of common space like entrance hall, stairs, passages, compound, etc. – owner or tenant?

N.A.

What is the amount of property tax? Who is to bear it? Give details with documentary proof

N.A.

Is the building insured? If so, give the policy no., amount for which it is insured and the annual premium

N.A.

Is there any dispute between landlord and tenant regarding rent pending in a court of law

N.A.

Has any standard rent been fixed for the permission under any law relating to the control or rent

N.A.

SALES

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

Considering the location of the property its industrial utility, potential demand factors affecting the value and current prevailing Market rates, I estimate the Rates as Rs. 20,000/- Per Sq. yds. After local enquiry

Land rate adopted in this valuation

Considering the location of the property its industrial utility, potential demand factors affecting the value and current prevailing Market rates, I estimate the Rates as Rs. 20,000/- Per Sq. yds. After local enquiry

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

Considering the location of the property its industrial utility, potential demand factors affecting the value and current prevailing Market rates, I estimate the Rates as Rs. 20,000/- Per Sq. yds. After local enquiry

COST OF CONSTRUCTION

Year of commencement of construction and year of completion

2014

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

By employing labours directly

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

N.A.

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

Labour directly

VALUATION :

The property under consideration for valuation is an Industrial land with shed type property bearing Plot No. P/37, Sayan Textile Park, Nera RJD Park, Surat Hazira Road, Ichchapore, Surat. It is having CC flooring, steel shutter and aluminium section window with glass. Considering the location, locality factors affecting the Market value of the property.

Value of the property as under :

Land area and Its Value:	Rs. in Millions
226 Sq. Yds. @ Rs. 20,000/- Sq. Yds.	Rs. 4.520 Millions
Built up area and Its Value
3276 Sft. @ Rs. 800/- Sft.	Rs. 2.621 Millions
Total value of the property	Rs. 7.141 Millions
Say	Rs. 7.141 Millions
Thus Fair Market Value	Rs. 7.141 Millions
Realizable Value	Rs. 6.427 Millions
Distress Sale Value	Rs. 5.712 Millions
Jantri Value (L.A. 189.04 Smt. x Rs. 3500/-) + (B.A)	Rs. 3.282 Millions
Insurable Value	Rs. 2.621 Millions

TECHNICAL DETAILS

No of floors and height of floor

Ground + 1 Floors

Plinth area floor-wise (As per IS: 3861-1966)

As per Valuation

Year of Construction

2014

Estimated future life

50 years approx., depending upon maintenance of the building in future

Type of construction – load bearing walls/ RCC frame/ Steel Frame

RCC Structure

Type of foundations

RCC Footing

Walls :

(a) Ground Floor

(b) Basement and Plinth

(c) Super Structure above Ground Floor

Brick Masonry in Cement Mortar

Partitions

Brick Masonry in Cement Mortar

Door and Windows (Floor Wise)

Steel Shutter and Aluminum section windows with glass

Flooring

CC Flooring

Finishing

Cement Plaster with Lapi

Roofing and Terracing

RCC Roofing

Special architectural or decorative features, if any

N.A.

(i) Internal Wiring – Surface or Concealed

(ii) Class of fitting – Superior/ Ordinary/ Poor

Open Wiring

Ordinary

Compound Wall

(i) Height

(ii) Length

(iii) Type of Construction

Existing

No. of Lifts and Capacity

N.A.

Underground Pump – Capacity and Type of Construction

N.A

Over-head Tank

N.A.

Pumps No. and their horse power

N.A.

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

CC Road

Sewage disposal – Where connected to public sewers. If septic tanks provided No. and Capacity

Drainage System Available

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TRADE REFERENCES

· Dhara Textiles

Address: 1, 2^nd Floor, Hira Panna, Varachha Road, Surat – 395006, Gujarat, India

Contact Person: Paresh Rakholiya

Contact No.: 9825600083

B Dobariya and Company

Address: B609, Diamond World, Mini Bazaar, Varachha Road, Surat – 395006, Gujarat, India

Contact Person: Bhavesh Dobariya

Contact No.: 9825331103

Hari Krishna Fabrics

Address: 21, Jay Industries, Anjana Farm, Surat – 395010, Gujarat, India

Contact Person: Girish Korat

Contact No.: 9376011869

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 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.61.78
UK Pound	1	Rs.96.78
Euro	1	Rs.76.59

INFORMATION DETAILS

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

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.