MIRA INFORM REPORT

Report Date :

31.10.2014

IDENTIFICATION DETAILS

Name :	TIRUMALA COTTONS GINNING AND PRESSING MILLS

Registered Office :	Sy. No. 42/1/AA and 40/EE, Brahmanapally Village, Gundlapally Mandal, District Nalgonda – 508258, Telangana

Country :	India

Year of Establishment :	30.05.2014

Capital Investment :	Not Divulged

PAN No.: [Permanent Account No.]	AAJFT3065D

Legal Form :	Partnership Concern with an Unlimited Liability of the Partners

Line of Business :	Ginning and Pressing of Cottons.

No. of Employees :	2 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

RATING

STATUS

PROPOSED CREDIT LINE

New Business

Status :	New Concern

Payment Behaviour :	Unknown

Litigation :	Clear

Comments :	Subject is a new partnership concern incorporated on May 2014. Mr. Memant Reddy, Auditor has provided information to us and claimed that the concern will start its commercial operations from August 2015. Payments are reported to be 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

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 willfully 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.

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. Hemant Reddy
Designation :	Auditor
Contact No.:	91-9618866789
Date :	29.10.2014

LOCATIONS

Registered Office :	Sy. No. 42/1/AA and 40/EE, Brahmanapally Village, Gundlapally Mandal, District Nalgonda – 508258, Telangana, India
Tel. No.:	Not Available
Mobile No.:	91-9866633091 [Mr. E. Manipal Reddy] 91-8297650299 [Mr. C. Jaipal Reddy]
Fax No.:	Not Available
E-Mail :	manipalreddyetikala1@gmail.com bhreddy.ca@gmail.com
Location :	Owned

PARTNERS

Name :	Mr. Etikala Manipal Reddy
Designation :	Partner
Address :	H. No. 8-4-12/35, Sairam Nagar, Kharmanghat, Hyderabad, Andhra Pradesh, India
Date of Birth/Age :	53 Years
Profile :	Mr. E Mahipal Reddy, partner of the firm is doing business of oil merchants for last 25 years. He is very much successful in his business. He is having good relations with traders within the state and outside the state. He is having vast experience in the trading of oil and dealing with different merchants and dealers. His experience is more useful in having tie ups with farmers / millers / agents / dealers.

Name :	Mr. C. Jaipal Reddy
Designation :	Partner
Address :	H. No. 6-16, Charakonda Village, Vangoor (M), Mahabubnagar District, Telangana, India
Date of Birth/Age :	39 Years
Profile :	Mr. Ch. Jaipal Reddy, partner of the firm is a businessman doing trading business of seeds and fertilizers at Charakonda 3 km's away from the proposed mill. He is also doing cotton trading/commission agent. He is into this business for last 15 years and having good contracts with farmers and traders in this area. He is having business connections with almost 800 farmers in that location who are producing cotton. Further he hailed from local place and having good connections with surrounding villages of the proposed mill location.

KEY EXECUTIVES

Name :	Mr. Hemant Reddy
Designation :	Auditor

BUSINESS DETAILS

Line of Business :	Ginning and Pressing of Cottons.

Terms :
Selling :	Credit [30 Days]

Purchasing :	Credit [30 Days]

PRODUCTION DETAILS

Products	Installed Capacity

Cotton Ginning	12000 Bales

GENERAL INFORMATION

Customers :	Wholesalers and Retailers

No. of Employees :	2 (Approximately)

Bankers :	· Bank of India Secunderabad – 500003, Andhra Pradesh, India

Facilities :	TL = Rs. 42.500 Millions WC Applied = Rs. 7.500 Millions


Banking Relations :	--

Auditors :
Name :	SJS Associates Chartered Accountants
Address :	Dilsukhnagar, Hyderabad – 500060, Andhra Pradesh, India
Tel. No.:	91-9618866789

CAPITAL STRUCTURE

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

FINANCIAL DATA

[all figures are in Rupees Millions]

NEW BUSINESS

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	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	Yes
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

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

COST OF PROJECT

[RS. IN MILLIONS]

SR. NO.	PARTICULARS	AMOUNT IN MILLIONS

1	Land	0.763

2	Civil Works	25.434

3	Plant and Machinery	36.522

4	Interest to be capitalized	4.365

5	Working Capital Margin	2.500

	TOTAL	69.585

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

MEANS OF FINANCE

[RS. IN MILLIONS]

SR. NO.	PARTICULARS	AMOUNT IN MILLIONS

1	Share Holders Funds
	- Promoters Contribution	22.585

	- Unsecured Loans from Family Members	4.500

2	Term Loans	42.500

	TOTAL	69.585

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

PROJECTED PROFITABILITY STATEMENT

(RS. IN MILLIONS)

PARTICULARS	2015-16	2016-17	2017-18	2018-19	2019-20
	Projected	Projected	Projected	Projected	Projected
INCOME
Sales
- Lint	75.211	78.971	82.920	87.066	91.419
- Seeds	13.500	14.175	14.884	15.628	16.409
- Job Work Charges	4.400	4.620	4.851	5.094	5.348

TOTAL	93.111	97.766	102.655	107.787	113.177

EXPENDITURE
Raw Materials	74.100	71.820	75.411	79.182	83.141
Power and Fuel Charges	2.857	3.000	3.150	3.308	3.473
Repairs and Maintenance	0.400	0.420	0.441	0.463	0.486
Wages	1.100	1.155	1.213	1.273	1.337
Salaries	1.992	2.092	2.196	2.306	2.421

TOTAL	80.449	78.487	82.411	86.531	90.858

Add: Opening Stock	--	6.500	6.825	7.166	7.525

Less: Closing Stock	6.500	6.825	7.166	7.525	7.901

TOTAL	73.949	78.162	82.070	86.173	90.482

Operating Profit	19.162	19.605	20.585	21.614	22.695

Operating Profit Margin (%)	21%	20%	20%	20%	20%

Selling and Admin Expenses	0.540	0.567	0.595	0.625	0.656

Depreciation	8.458	7.339	6.372	5.537	4.815

Preliminary expenses written off	--	--	--	--	--

TOTAL	8.998	7.906	6.967	6.162	5.471

Interest on
- Term Loan	5.970	5.008	3.981	2.954	1.928

- Working Capital Loan	1.050	1.050	1.050	1.050	1.050

TOTAL	7.020	6.058	5.031	4.004	2.978

Net Profit	3.143	5.642	8.587	11.448	14.246

Net Profit Margin (%)	3%	6%	8%	11%	13%

Income Tax	0.971	1.743	2.653	3.537	4.402

Net Profit after Tax	2.172	3.898	5.933	7.910	9.844

Net Profit after Tax Margin (%)	2%	4%	6%	7%	9%

Drawings	--	--	1.000	1.500	2.000

Retained Profit	2.172	3.898	4.933	6.410	7.844

Cash Accruals	10.630	11.237	12.305	13.447	14.659

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

PROJECTED BALANCE SHEET

(RS. IN MILLIONS)

PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20
	Projected	Projected	Projected	Projected	Projected	Projected

SOURCES OF FUNDS
Share Capital
- Promoters Capital	22.585	23.585	23.585	23.585	23.585	23.585

Reserves and Surplus
- Profit and Loss A/c	--	2.172	6.070	11.004	17.414	25.258

Unsecured Loan	4.500	4.500	4.500	4.500	4.500	4.500

Term Loans	42.500	37.190	30.110	23.030	15.950	8.870

Current Liabilities
- Overdraft	--	7.500	7.500	7.500	7.500	7.500

- Sundry Payables	--	0.530	1.968	2.066	2.169	2.278

TOTAL	69.585	75.477	73.733	71.685	71.118	71.991

APPLICATION OF FUNDS
Fixed Assets [Gross Block]	67.085	67.085	58.627	51.288	44.916	39.379

Less: Deprecation	--	8.458	7.339	6.372	5.537	4.815

Net Block	67.085	58.627	51.288	44.916	39.379	34.565

Add: Capital work in progress	--	--	--	--	--	--

CURRENT ASSETS
- Closing Stock	--	6.500	6.825	7.166	7.525	7.901

- Receivables	--	8.704	10.714	11.250	11.812	12.403

- Other Current Assets	--	--	1.000	2.000	3.000	4.000

- Cash and Bank Balance	2.500	1.646	3.906	6.352	9.402	13.122

Preliminary expenses	--	--	--	--	--	--

TOTAL	69.585	75.477	73.733	71.685	71.118	71.991

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

CASH FLOW STATEMENT

(RS. IN MILLIONS)

PARTICULARS	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20
	Projected	Projected	Projected	Projected	Projected	Projected

CASH INFLOW
Increase in Promoters Capital	22.585	1.000	--	--	--	--

Net Profit after Tax	--	2.172	3.898	5.933	7.910	9.844

Depreciation	--	8.458	7.339	6.372	5.537	4.815

Increase in USL	4.500	--	--	--	--	--

Increase Term Loans	42.500	--	--	--	--	--

Working Capital	--	7.500	--	--	--	--

Increase in Current Liabilities	--	0.530	1.438	0.098	0.103	0.108

TOTAL	69.585	19.660	12.674	12.404	13.551	14.767

CASH OUTFLOW
Increase in Fixed Assets	67.085	--	--	--	--	--

Repayment of Term Loan	--	5.310	7.080	7.080	7.080	7.080

Increase in Investments	--	--	--	--	--	--

Increase in Closing Stock	--	6.500	0.325	0.341	0.358	0.376

Increase in Receivables	--	8.704	2.010	0.536	0.562	0.591

Increase in other current assets	--	--	1.000	1.000	1.000	1.000

Drawings	--	--	--	1.000	1.500	2.000

TOTAL	67.085	20.514	10.415	9.957	10.501	11.047

Opening Balance	--	2.500	1.646	3.906	6.352	9.402

Surplus / (Deficit)	2.500	(0.854)	2.259	2.447	3.050	3.720

Closing Balance	2.500	1.646	3.906	6.352	9.402	13.122

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

DEBT SERVICE COVERAGE RATIO

(RS. IN MILLIONS)

PARTICULARS	2015-16	2016-17	2017-18	2018-19	2019-20
	Projected	Projected	Projected	Projected	Projected

Net Profit after Tax	2.172	3.898	5.933	7.910	9.844

Add:
- Depreciation	8.458	7.339	6.372	5.537	4.815

- Interest Term Loan	7.020	6.058	5.031	4.004	2.978

- Preliminary expenses w/o	--	--	--	--	--

TOTAL	17.650	17.294	17.336	17.452	17.636

DEBT
- Interest Term Loan	7.020	6.058	5.031	4.004	2.978

- Principal repayment of TL	5.310	7.080	7.080	7.080	7.080

TOTAL	12.330	13.138	12.111	11.084	10.058

DSCR	1.43	1.32	1.43	1.57	1.75

Average DSCR	1.75

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

ASSESSMENT OF WORKING CAPITAL REQUIREMENTS

OPERATING STATEMENT

(RS. IN MILLIONS)

SR. NO.	PARTICULARS	31.03.2016	31.03.2017	31.03.2018	31.03.2019	31.03.2020
		Projected	Projected	Projected	Projected	Projected
1	Gross Sales
	Domestic Sales	93.111	97.766	102.655	107.787	113.177

	Export Sales	--	--	--	--	--

	Discount and Incentives received	--	--	--	--	--

	Total Sales	93.111	97.766	102.655	107.787	113.177

2	Less: Excise Duty, VAT	--	--	--	--	--

3	Net Sales [1-2]	93.111	97.766	102.655	107.787	113.177

4	% rise [+] or fall [-] in sales	--	5.00%	5.00%	5.00%	5.00%

5	Cost of Sales
	Purchases [Including stores and spares and other items used in the process of manufacture]	74.100	71.820	75.411	79.182	83.141
	- Imported	--	--	--	--	--
	- Indigenous	74.100	71.820	75.411	79.182	83.141

	Consumables
	- Imported	--	--	--	--	--
	- Indigenous	--	--	--	--	--

	Power and Fuel	2.857	3.000	3.150	3.308	3.473

	Other expenses	3.492	3.667	3.850	4.042	4.245

	Depreciation	8.458	7.339	6.372	5.537	4.815

	Sub-total	88.907	85.825	88.783	92.068	95.673

	Add: Opening stock in process	--	--	--	--	--

	Sub-total	88.907	85.825	88.783	92.068	95.673

	Deduct: Closing stock in process	--	--	--	--	--

	Cost of Production	88.907	85.825	88.783	92.068	95.673

	Add: Opening Stock finished Goods	--	6.500	6.825	7.166	7.525

	Sub-total	88.907	92.325	95.608	99.234	103.197

	Deduct: Closing Stock finished Goods	6.500	6.825	7.166	7.525	7.901

	Total cost of sales	82.407	85.500	88.442	91.710	95.297

6	Selling, General & Administrative Expenses	0.540	0.567	0.595	0.625	0.656

7	Sub-total	82.947	86.067	89.037	92.335	95.953

8	Operating profit before interest [3-7]	10.163	11.699	13.618	15.452	17.224

9	Interest and finance charges	7.020	6.058	5.031	4.004	2.978

10	Operating profit after interest [8-9]	3.143	5.642	8.587	11.448	14.246

11	Other non-operating income
	(a) Miscellaneous Income	--	--	--	--	--
	(b)	--	--	--	--	--
	(c)	--	--	--	--	--
	(d)	--	--	--	--	--

	Sub-total [Income]	--	--	--	--	--

12	Deduct: Other non-operating expense	--	--	--	--	--
	(b)	--	--	--	--	--

	Sub-total [Expenses]	--	--	--	--	--

13	Net of other non-operating incomes/ expenses [11-12]	--	--	--	--	--

14	Profit before Tax/Loss [10+13]	3.143	5.642	8.587	11.448	14.246

15	Provision for taxes
	(a) Current Tax	0.971	1.743	2.653	3.537	4.402
	(b) Deferred Tax	--	--	--	--	--

	Sub-total	0.971	1.743	2.653	3.537	4.402

16	Net Profit / (Loss) after tax [14-15]	2.172	3.898	5.933	7.910	9.844

17	Drawings	--	--	1.000	1.500	2.000

18	Retained Profit	2.172	3.898	4.933	6.410	7.844

19	Retained Profit / Net Profit (%)	100%	100%	83%	81%	80%

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

ANALYSIS OF BALANCE SHEET

(RS. IN MILLIONS)

SR. NO.	PARTICULARS	31.03.2015	31.03.2016	31.03.2017	31.03.2018	31.03.2019	31.03.2020
		Projected	Projected	Projected	Projected	Projected	Projected
	CURRENT LIABILITIES
1	Short term borrowings from bank (incl. Bills purchased, discounted and excess borrowings placed on repayment basis)
	(i) From Applicant bank	--	7.500	7.500	7.500	7.500	7.500
	(ii) From other banks	--	--	--	--	--	--
	(iii) of which BP & BD	--	--	--	--	--	--

	SUB-TOTAL (A)	--	7.500	7.500	7.500	7.500	7.500

2	Short term borrowings from others	--	--	--	--	--	--

3	Sundry Creditors [Trade]	--	0.530	1.968	2.066	2.169	2.278

4	Advance payments from customers/deposits from dealers	--	--	--	--	--	--

5	Provision for Taxation	--	--	--	--	--	--

6	Dividend Payable	--	--	--	--	--	--

7	Other statutory liabilities (due within one year)	--	--	--	--	--	--

8	Deposits/Instalments of term loan/ DPGs/ Debentures etc. (due within one year)	5.310	7.080	7.080	7.080	7.080	7.080

9	Other current liabilities & Provisions (due within one year) (Specify major items)	--	--	--	--	--	--

	SUB-TOTAL (B)	5.310	7.610	9.048	9.146	9.249	9.358

10	TOTAL CURRENT LIABILITIES	5.310	15.110	16.548	16.646	16.749	16.858

	TERM LIABILITIES
11	Debentures [Not maturing within one year]	--	--	--	--	--	--

12	Preference Shares [redeemable after one year]	--	--	--	--	--	--

13	Term loans [excluding installments payable within one year]	37.190	30.110	23.030	15.950	8.870	1.790

14	Deferred payments credits [excluding installments due within one year]	--	--	--	--	--	--

15	Term Deposits [repayable after one year]	--	--	--	--	--	--

16	Other term liabilities	4.500	4.500	4.500	4.500	4.500	4.500

17	TOTAL TERM LIABILITIES	41.690	34.610	27.530	20.450	13.370	6.290

18	TOTAL OUTSIDE LIABILITIES	47.000	49.720	44.078	37.096	30.119	23.148

	NET WORTH
19	Capital	22.585	23.585	23.585	23.585	23.585	23.585

20	Surplus (+) or deficit (-) in Profit & Loss Account	--	2.172	6.070	11.004	17.414	25.258

21	(a) Others [Specify]	--	--	--	--	--	--

22	NETWORTH	22.585	25.757	29.655	34.588	40.999	48.843

23	TOTAL LIABILITIES	69.585	75.477	73.733	71.685	71.118	71.991

	CURRENT ASSETS
24	Cash & Bank balances	2.500	1.646	3.906	6.352	9.402	13.122

25	Investments [Other than long term investments]
	(i) Government and Other Trustee securities	--	--	--	--	--	--

	(ii) Fixed Deposits with banks	--	--	--	--	--	--

26	(i) Receivables other than deferred and exports [including bills purchased/ discounted by banks]	--	8.704	10.714	11.250	11.812	12.403

	(ii) Export receivables [including bills purchased/ discounted by banks]	--	--	--	--	--	--

27	Installments of deferred receivable [due within 1 year]	--	--	--	--	--	--

28	Inventory
	(i) Raw materials (including stores and other items in process of manufacture)
	- Imported	--	--	--	--	--	--
	- Indigenous	--	--	--	--	--	--

	(ii) Stock-in-process	--	--	--	--	--	--

	(iii) Finished Goods	--	6.500	6.825	7.166	7.525	7.901

	(iv) Other Consumable Spares
	- Imported	--	--	--	--	--	--
	- Indigenous	--	--	--	--	--	--

29	Advances to suppliers of Raw Materials and Stores and Spares	--	--	--	--	--	--

30	Advance payment of Taxes	--	--	--	--	--	--

31	Other current assets [Specify major items]	--	--	--	--	--	--

32	TOTAL CURRENT ASSETS	2.500	16.850	21.445	24.768	28.739	33.426

	FIXED ASSETS
33	Gross Block	67.085	67.085	58.627	51.288	44.916	39.379

34	Less: Depreciation to date	--	8.458	7.339	6.372	5.537	4.815

35	NET BLOCK	67.085	58.627	51.288	44.916	39.379	34.565

	Capital work in progress	--	--	--	--	--	--

	OTHER NON-CURRENT ASSETS
36	Investments/book debts /advances deposits which are not current assets	--	--	1.000	2.000	3.000	4.000
	(i) Investments in subsidiary companies/ affiliates	--	--	--	--	--	--
	(ii) Other investments	--	--	1.000	2.000	3.000	4.000
	(iii) Advances to suppliers of capital goods and contractors	--	--	--	--	--	--
	(iv) Deferred receivables [Maturity exceeding one year]	--	--	--	--	--	--
	(v) Others
	- Debtors more than 6 months	--	--	--	--	--	--
	- Security Deposits	--	--	--	--	--	--
	- Others	--	--	--	--	--	--

37	Non Consumable Stores and Spares	--	--	--	--	--	--

38	Other non-current assets	--	--	--	--	--	--

39	TOTAL OTHER NON-CURRENT ASSETS	--	--	1.000	2.000	3.000	4.000

40	Intangible Assets	--	--	--	--	--	--

41	TOTAL ASSETS	69.585	75.477	73.733	71.685	71.118	71.991

42	Investments in Associates	--	--	--	--	--	--

43	Net working capital	(2.810)	1.740	4.897	8.122	11.989	16.568

44	Current Ratio	0.47	1.12	1.30	1.49	1.72	1.98

45	TNW	22.585	25.757	29.655	34.588	40.999	48.843

46	TOL / TNW	2.08	1.93	1.49	1.07	0.73	0.28

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COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

[1ST METHOD]

(RS. IN MILLIONS)

SR. NO.	PARTICULARS	31.03.2016	31.03.2017	31.03.2018	31.03.2019	31.03.2020
		Projected	Projected	Projected	Projected	Projected

1	Gross Sales [Annualised]	93.111	97.766	102.655	107.787	113.177

2	25% of Gross Sales	23.278	24.442	25.664	26.947	28.294

3	Margin required – 5% of Gross Sales	4.656	4.888	5.133	5.389	5.659

4	Eligible Bank Financial [2-3]	18.622	19.553	20.531	21.557	22.635

5	Permissible Bank Finance [Lower of 6 and 7]	18.622	19.553	20.531	21.557	22.635

6	Excess Borrowings	--	--	--	--	--

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

COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

[2ND METHOD]

(RS. IN MILLIONS)

SR. NO.	PARTICULARS	31.03.2016	31.03.2017	31.03.2018	31.03.2019	31.03.2020
		Projected	Projected	Projected	Projected	Projected

1	Total Current Assets	16.850	21.445	24.768	28.739	33.426

2	Total Current Liabilities [CL] [Except Bank Borrowings and TL Installments due within one year]	0.530	1.968	2.066	2.169	2.278

3	Working Capital Gap	16.320	19.477	22.702	26.569	31.148

4	Minimum stipulated Net Working Capital [25% of Total Current Assets excluding Export Receivables]	4.213	5.361	6.192	7.185	8.356

5	Actual / Projected NWC	8.820	11.977	15.202	19.069	23.648

6	Item 3 - 4	12.108	14.116	16.510	19.385	22.792

7	Item 3 - 5	7.500	7.500	7.500	7.500	7.500

8	Maximum Permissible Bank Finance [Lower of 6 and 7]	7.500	7.500	7.500	7.500	7.500

9	Excess Borrowings representing shortfall in NWC	0.000	0.000	0.000	0.000	0.000

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

PERFORMANCE AND FINANCIAL INDICATORS

(RS. IN MILLIONS)

PARTICULARS	31.03.2016	31.03.2017	31.03.2018	31.03.2019	31.03.2020
	Projected	Projected	Projected	Projected	Projected

Domestic Sales [Gross]	93.111	97.766	102.655	107.787	113.177

Export Sales	--	--	--	--	--

Net Sales	93.111	97.766	102.655	107.787	113.177

% rise/fall in net sales	--	5.00%	5.00%	5.00%	5.00%

PBDIT	13.655	15.366	17.468	19.495	21.468

Operating Profits [PBIT]	10.163	11.699	13.618	15.452	17.224

Profit before tax [PBT]	3.143	5.642	8.587	11.448	14.246

PBT / Net Sales	3.38%	5.77%	8.36%	10.62%	12.59%

Profit after tax [PAT]	2.172	3.898	5.933	7.910	9.844

Cash Accrual [after dividend]	10.630	11.237	12.305	13.447	14.659

Total Tangible Assets [TTA]	75.477	73.733	71.685	71.118	71.991

Total Outside Liabilities	49.720	44.078	37.096	30.119	23.148

Paid up Capital	23.585	23.585	23.585	23.585	23.585

TNW	25.757	29.655	34.588	40.999	48.843

TOL / TNW [Times]	1.93	1.49	1.07	0.73	0.47

Debt Equity Ratio [Times]	1.91	1.42	1.01	0.68	0.43

NWC	1.740	4.897	8.122	11.989	16.568

Current Ratio	1.12	1.30	1.49	1.72	1.98

Quick Ratio	0.68	0.88	1.06	1.27	1.51

Adjusted TNW	25.757	29.655	34.588	40.999	48.843

Adjusted TOL / TNW	1.93	1.49	1.07	0.73	0.47

OTHER RATIOS
Operating Cost / Net Sales [%]	89.08%	88.03%	86.73%	85.66%	84.78%

Net Sales / TTA [Times]	1.23	1.33	1.43	1.52	1.57

PBDIT	13.655	15.366	17.468	19.495	21.468

EFFICIENCY RATIOS
Net Sales / Total Tangible Assets	1.23	1.33	1.43	1.52	1.57

PBT / Total Tangible Assets [%]	4.16%	7.65%	11.98%	16.10%	19.79%

Bank Finance / Current Assets [%]	44.51%	34.97%	30.28%	26.10%	22.44%

Inventory + Receivables to Net Sales	59.60	65.48	65.48	65.48	65.48

RISK RATING RELATED RATIOS
Current Ratio	1.12	1.30	1.49	1.72	1.98

TOL / TNW [Times]	1.93	1.49	1.07	0.73	0.47

PBDIT / Interest [Times]	1.95	2.54	3.47	4.87	7.21

PAT / Net Sales [%]	2.33%	3.99%	5.78%	7.34%	8.70%

ROCE [%] [PBDIT / TA]	18.09%	20.84%	24.37%	27.41%	29.82%

[Inve. + Rec.] / Sales [Days]	59.60	65.48	65.48	65.48	65.48

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

INVENTORY AND RECEIVABLES HOLDING LEVELS

(RS. IN MILLIONS)

PARTICULARS	31.03.2016	31.03.2017	31.03.2018	31.03.2019	31.03.2020
	Projected	Projected	Projected	Projected	Projected

Stock in process	--	--	--	--	--
Holding period in Months	--	--	--	--	--

Finished Goods	6.500	6.825	7.166	7.525	7.901
Holding period in Months	0.95	0.96	0.97	0.98	0.99
Holding period in Days	28.79	29.14	29.58	29.95	30.26

Receivables
Indigenous	8.704	10.714	11.250	11.812	12.403
Holding period in Months	1.12	1.32	1.32	1.32	1.32

Receivables [Total]	8.704	10.714	11.250	11.812	12.403
Holding period in Days	34.12	40.00	40.00	40.00	40.00

Sundry Creditors	0.530	1.968	2.066	2.169	2.278
Holding period in Days	2.61	10.00	10.00	10.00	10.00

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

NETWORTH STATEMENT

MR. ETIKALA MANIPAL REDDY

(RS. IN MILLIONS)

SR. NO.	PARTICULARS	AMOUNT

1	House at Sai Ram Nagar Colony, Karmanghat (V), Saroornagar (M), Hyderabad	10.000

2	Capital investment in Yochit Implex	1.328

3	Plot at Bongulur, Ranga Reddy [District]	2.000

	TOTAL	13.328

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NETWORTH STATEMENT

MR. C. JAIPAL REDDY

(RS. IN MILLIONS)

SR. NO.	PARTICULARS	AMOUNT

1	Agricultural land at Brahmanapally (V), Nalgonda (District) admeasuring 9 Acres	4.500

2	Capital investment in Laxmi Fertilizers	1.002

	TOTAL	5.502

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NETWORTH STATEMENT

MRS. LAXMI DEVI

(RS. IN MILLIONS)

SR. NO.	PARTICULARS	AMOUNT

1	Plot at Karmanghat (V), Saroornagar (M), Hyderabad admeasuring 355 Sq. Yards	9.000

2	Gold weighing 500 grams	1.400

	TOTAL	10.400

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NETWORTH STATEMENT

MS. SHIVA KUMARI

(RS. IN MILLIONS)

SR. NO.	PARTICULARS	AMOUNT

1	Plot at Bairamalguda (V), Saroornagar (M), Hyderabad admeasuring 333 Sq. Yards	9.324

2	Gold weighing 500 grams	1.400

	TOTAL	10.724

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PROJECT REPORT

PROPOSAL

Both the partners have formed a firm Tirumala Cottons Ginning and Pressing Mills and proposed to establish a cotton ginning miIl at Vavilkol (V), Dindi (M), Nalgonda District with a main object to do the business of ginning the cotton and pressing. We are proposed to do both trading and job work basis i.e. pressing only on rate per piece of bales.

LOCATION

The proposed mill is situated at vavilkol (v), Dindi (M), Nalgonda District. Lots Lacs of acres of cotton is cultivated within 5O km's radius of the location. Raw cotton is a bulky Raw Material & Transportation cost will effect the selling price and margins. As the proposed location is surrendered by cotton cultivation, farmers and traders come to the factory directly. The location is an added advantage for the industry.

RAW MATERIAL REQUIREMENT AND AVIALABILITY (COTTON)

Cotton is produced by cultivation cotton crop. Previously cotton is produced from black cotton soil with good water sources. But now cotton is produced in all kind of soils dry, wet, red, black etc. Now cotton is major crop in Telangana and particularly in Nalgonda and Mahabubnagar Districts.

CLOTH

Three main important requirements of human being are food, shelter and cloth. Cloth is basic necessity of a man from the beginning evolution of civilization to new generations. Cloth is made of material fiber i.e. cotton/silk and artificial fiber. Natural fiber is cotton and silk is used for production of cloth for regular use.

INDUSTRY

Ginning is process of removing seed from cotton and separation. This separated cotton is pressed into bales and sold for further processing. Presently ginning and spinning mills are mostly present in Maharashtra, Gujarat and Andhra Pradesh. Presently cotton cultivation is increased in Telangana and there are no adequate mills for ginning. The lint will be baled and goes to textile industries for further processing whereas the cotton seed is milled by oil mills to produce edible oil. Cotton ginning, therefore requires the unprocessed raw cotton, and then is applied on the cotton ginner in order to produce baled cotton and cottonseed. Lint cotton is a major input for the textile industry. The demand for the product is therefore derived from the demand for textile products. Cotton is produced by state farms, private commercial farms and peasant farms. Cotton produced on the state farms and private commercial farms is ginned and used in commercial textile manufacturing, while that peasant farms is for the larger part used by the hand loom industry.

PROCESS DESCRIPTION:

The major unit operations involved in cotton ginning are:

1) Lint Cleaning

2) Baling

a. Separation

Raw cotton from the storage hall is manually transported to an intake separator where the cotton is screened out and allowed to pass to the next machine. Modern separators have rotating sealed wheels and curved. Screens which permit the air currents to pass directly to a fan. The separation process involves equipment like the separator, feeding hopper, fan with tubular air ducts.

b. Drying

After the seed cotton (raw cotton) is separated from foreign materials (possibly carried over from cotton farms and during transportation), it is then passed to a hot gas drier. Here the seed cotton that is damp or wet will be dried. If seed cotton is wet some of the lint will be cut by the saws or packed into small dense tufts. The saws may become so clogged that the gin will not run at all. Hot gas dryers can be by passed when ginning during dry weather.

c. Cleaning

Cleaners are types of machines having concave screens or grid bars utilizing beater cylinders and are frequently supplied with a down wash of hot air. Cleaners would therefore, clean the seed cotton by threshing over screens.

d. Extraction

Extractors are equipment that employ a toothed "carding" action on the locks of cotton in conjunction with stripper cylinders that beat off the hulls, burs and stems, while the lock passes onto a doffing brush. Extractors perform functions of cleaning and extracting of large piece of foreign materials.

e. Distributing

Cotton gins (ginneries) use mechanical forms of distribution between overhead machinery and the feeders on the gin stands. Each gin stand in a multiple of gin stands is supplied with all the cottons it can handle. Distributors thus supply cotton to all gin stands installed in the ginnery.

f. Feedings

Feeders are devices, located over each gin stand, that supply the gin saws with regulated streams of clean, dry seed cotton. Feeder takes the form of regulated rollers with spiked drum and screen.

g. Ginning

Ginning is the process of separating the seed from the lint. This is accomplished by gin saws. These are steel disks approximately 0.037 inch thick and provided with about seven teeth per inch of periphery. Improved huller gins use saws 12 inches in diameter, having from 264 to 282 teeth and running at speeds from 650 to 700 revolutions per minute for maximum capacity.

Ribs of tough, highly polished iron are used in cotton gins to form grids through which the saws may pass. Ginning ribs are spaced about 1/8 inch apart, so that the saws carrying the lint may pass while the seeds are excluded.

The cotton gins employ rotating brushes to remove the cottons from saw teeth. After the seed is separated from the lint, it is discharged into self-cleaning belt and then into self-cleaning blow pipe systems. The lint removed from the saws is carried by air plast to the condenser, which consist essentially of a large roller covered with wire screen and smaller wooden roller. From the condenser, the cotton drops into the press box, over the bottom of which has been spread bale bagging. As the cotton collects in the box, it is packed every minute or so by mechanical trampers. After enough has been accumulated to make approximately 7501bs bale, heavy pressure is applied by hydraulic press. When the cotton is under pressure the bagging is fitted over the sides of the bale and 6 steel ties are put around it fastened. Pressure is then released, and the cotton expands somewhat but is held firmly in a compact bale by the bagging and ties. The bale is now complete. The seed produced is bagged in hessian sacks and are dispatched to oil mills. The project is environmentally friendly since it does not emit any toxic chemicals.

BUSINESS MODEL:

They proposed to follow two types of revenue strategies:

1) Procurement of cotton from farmers and processed cotton will be sold to Spinning Mills.

2) Job work basis.

In the first model the firm will procure the cotton from local market with their contacts. As the partners as having vast experience in the procurement they will identify the best quality at real market rates. On procurement they have to make the payments to the farmers at site and shift to their mill. On completion of the milling and pressing the bales will be kept ready for dispatch.

The finished product will be sold to the Spinning mills as their Raw Material. One of the Partner Jaipal Reddy is having experience in selling the finished product to the spinning mills on commission basis. With his existing connections and experience they will be able to offload their finished Product. They proposed to sell their finished product to the spinning mills at Kalvakurthy, Jedcherla, Guntur District, Coimbatore based on the market rates.

As a general business practice we extend the credit period of 30 to 45 days to the Spinning mills. As they are procuring the materials from the farmers directly they have to make the payments on purchase. This is where the Working capital need is being arises.

They are employing a well-qualified and experienced Site Engineer. Further, technical supervisors are also being employed to monitor production activities.

They are proposing operate the plant in 2 shifts. In their revenue assumptions, they have taken 1 shift for their own procured materials production and another shift is considered for Job work basis production where they will recover their cost and service charges for plant operations.

APPROVALS AND LICENCES TABLES:

SR. NO.	PARTICULARS	STATUS

1	Deed Registration with Register of Firms	No.167 of 2074

2	Registration under MSME Act	TS0081200004

3	Land Conversion Certificate	Certificate Obtained on 24/07 /2014

4	Permission from Grampanchayat for Civil Works	Certificate Obtained on 26107 /2014

5	License from Electricity Board	Obtained

ASSUMPTIONS FOR FINANCIALS:

KEY INDICATORS	PARTICULARS	INPUTS
Installed Capacity	Bales/hr	24

Project Implementation Time Frame
Construction Period	Months	9

Construction start date	Year	01.11.2014

Construction end date	Year	01.10.2015

Capital Cost Assumptions

		Rs. in Millions
Land Cost	Millions	0.763

Proposed Building	Millions	25.434

Proposed Plant & Machinery	Millions	36.522

Total		62.720

Generation Assumptions

Installed Capacity Ginning	Bales/hr	12

Installed Capacity Pressing	Bales/hr	24

Bales per hr		10

No. of days working		150

No. of hours working in a day		4

Total installed capacity per annum	Bales	6000

Annual Operating capacity		60.00%

Annual Generation
- Cotton Lint	Bales	3600

- Cotton Seed	Tonnes	1080

- Shortage	Tonnes	90

1 Bale	Kg	175

1 Candy	Kg	356

NOTE: Daily operating capacity is 8 hours per day, out of which half time is used for own material processing and remaining half time used for Job Work i.e. third party material processing.

Revenue Assumptions

Selling Price
- Cotton Lint	Rs/Candy	42,500

- Cotton Lint	Rs/Bale	20,892

- Cotton Seed	Rs/Tonne	12,500

- Cotton Seed	Rs/Kg	13

Production Assumptions

Output for 500 kg input

Generation
- Cotton Lint (Kg)	35%	175

- Cotton Seed (Kg)	60%	300

- Shortage (Kg)	5%	25

Project Funding

Debt/Equity	%	144.95%

lnterest rate for TL	%	14.50%

Loan Period	Years	84

Moratorium Period Excluding Con. Period	Months	4

Repayment Starts	Date	01.09.2015

Repayment Period	Quarters	24

Raw Material Assumptions

Purchase of cotton per annum	Tonnes	1,800

Purchase cost	Rate/Tonne	38,000

Escalation Rate	%	5%

Expenditure Assumptions

Power & Fuel	Rs. /Bale	200.00

Repairs & Maitenance	Rs. /per month	50,000

Wages
Unskilled Labour	Nos.	30

No. of days working	Days	150

Wages per day	Rs.	200.00

Total Wages	Rs.	9,00,000

Operating exp. Escalation	%	5%

Job Work Assumptions

No. of shifts in day	Shift	1

No. of hours in a day	Hour	4

No. of bales production	Bales	40

No. of days working	Days	100

Avg. Job work charges	Rs./Bale	1100.00

Expenditure
Power & Fuel	Rs./Bale	200.00

Wages per day	Rs.	50.00

REPAYMENT SCHEDULE:

Term Loan Amount	Rs. 42.500 Millions

Construction Period	6 Months

Month of Construction Starts	Nov'14

Construction Ends	Apr'15

Production Starts	May'15

Moratorium Period	4 months from Construction ends

Repayment Starts	Sep'15

Repayment Period	24 Quarterly Installments

Interest Rate	14.50%

SECURITIES:

PRIMARY SECURITY

SR. NO.	PARTICULARS	RS. IN MILLIONS

1	Land bearing Sy.Nos.42/1A, 42/1/A and 40/EE, situated at Brahmanapalli (V), Vavilkote Grampanchayat, Gundlapally (Dindi) (M), Nalgonda District, admeasuring 6 Acres in the name of Mr. C Jaipal Reddy	3.000

2	Value for Proposed Building and Structure at Land bearing Sy.Nos.42/1A, 42/1/A and 40/EE, situated at Brahmanapalli (V), Vavilkote Grampanchayat, Gundlapally (Dindi) (M), Nalgonda District	20.100

3	Value of Proposed Plant and Machinery	36.522

	TOTAL	59.622

COLLATERAL SECURITY

SR. NO.	PARTICULARS	RS. IN MILLIONS

1	Open plot bearing Sy. No. 178/A, situated at Kalwakurthy (V), Grampanchayat and Mandal, Mahabubnagar District, admeasuring 2240 Sq. Yards in the name of Mr. C. Jaipal Reddy	8.470

2	Open Plot bearing Plot No. 11 in Sy. Nos. 36 and 32 Part, situated at Bairamalguda (V), Saroornagar (M), R.R. District, admeasuring 333 Sq. Yards in the name of Ms. E Shiva Kumari D/o E Manipal Reddy	8.325

3	Open Plot bearing Plot No. 15 in Sy No. 58, situated at Karmanghat (V), Saroornagar (M), R.R. District, admeasuring 355 Sq. Yards in the name of Mrs. E Laxmi Devi w/o E Manipal Reddy	7.568

4	Residential building at Charakonda (V), Vangoor (M), Mahabubnagar District, in the name of Mr. Jaipal Reddy, (Ground + 2 Floors)	2.500

	TOTAL	26.863

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VALUATION REPORT

(GENERAL DETAILS)

Purpose of which the valuation is made

Bank of India

Secunderabad Branch

Valuation requested by

Manager

Bank of India, Secunderabad Branch

Date of Inspection

22.09.2014

Date on which the valuation is made

23.09.2014

List of Documents produced for perusal

1) Copy of Sale deed vide Doct No. 871/1992 dated 22^nd January 1992, SRO – Hyderabad East value as per deed Rs. 0.036 Million.

2) Copy of LRS Plan vide Proceeding No. LRS/4508/Cr-3/EZ/GHMC/2008, Dated 22.10.2009 issued by Commissioner GHMC. For 355 Sq. Yards / 296.7 Sq. Mt.

(All the above Xerox copy are perused and returned herewith)

Scope of Valuation

Extent of Land: 355 Sq. Yards / 296.7 Sq. Mt.,

Less Road effected: 11 Sq. Yards / 9.29 Sq. Mt.

Net Plot Area: 344 Sq. Yards / 287.41 Sq. Mt.

Structures

Year of construction

Plinth Areas

Ground Floor

First Floor

Age of the building

Residual life of the building

Inspection was conducted in the presence of

Along with Owner husband Mr. Manipal Reddy

Name of the owners and his / her address with phone no. [Details of share of each owner in case of joint ownership]

Mr. E. Laxmi Devi

w/o. Mr. Manipal Reddy

Brief description of the property

It is an open land with a land extent of 355 Sq. Yards. The said property is inspected along with owner’s husband Mr. Manipal Reddy situated in well-developed locality. It is situated in Karmanghat Village in Saroornagar Mandal, R.R. District. The site is near Coco Cola factory and bar restaurant. The site is around 0.3 km from main road.

Location of the property

ü Plot No./ Survey No.

ü Door No.

ü T.S. No. / Village / Colony

ü House No.

ü Mandal/ District

Plot No. 15, Sy. No. 58 Part,

LB Nagar Municipality

Karmanghat Village

Saroornagar Revenue Mandal

R.R. District

Postal address of the property

Same as above

City / Town

ü Residential

ü Commercial Area

ü Industrial Area

Residential Area

Classification of the area

ü High/ Middle/ Poor

ü Urban/ Sub Urban/ Rural

Middle Class

Urban

ü Coming under corporation limit/ Village panchayat / Municipality

ü Permit No.

GHMC

Whether covered under any State/ Central Government enactments [e.g. Urban Land Ceiling Act] or notified under agency area Scheduled area/ cantonment area

Boundaries of the property

ü North

ü South

ü East

ü West

ü North

ü South

ü East

ü West

As per deed

25’ wide road

Plot No. 15/A

20’ wide road

Plot No. 16

Existing

25’ Gravel Road

5’ Passage

Neighbours property [Road encroached by Neighbour]

Open Land

Extent of site

ü As per deed

Dimensions

ü North

ü South

ü East

ü West

Extent of Land: 355 Sq. Yards/ 296.7 Sq. Mt.

Less: Road effected: 11 Sq. Yards/ 9.29 Sq. Mt.

Net Plot area: 344 Sq. Yards/ 287.41 Sq. Mt.

Deed	Existing	After road effected
40’	43’	40’
40’	43’	40’
80’	80’	77’ 6
80’	80’	77’ 6

Extent of the site considered for valuation

344 Sq. yards

Whether occupied by the owner / tenant:

Since how long?

Rent received per month

Open land

CHARACTERISTICS OF THE SITE

Classification of locality

Middle Class

Development of surrounding area

Developed

Possibility of frequent flooding

Feasibility to the Civic amenities like School, Hospital, Bus stop, Market etc.

Within a distance of 1 km

Level of land with Teopographical condition

Leveled Land

Shape of Land

Rectangular in shape

Type of use to which it can be put

Residential

Any use restriction

Is plot in Town Planning approved layout

Yes

Corner plot or Intermittent plot

Intermittent plot

Road facilities

Available

Type of Road available at present

Gravel Road

Width of road is it below 20 ft. or more than 20 ft

More than 20’ wide road

Is it a Land-Locked Land?

Water Potentiality

Available in Vicinity

Underground sewerage system

Available in Vicinity

Power supply is available in the site

Available in Vicinity

Advantages of the site

General remarks if any

Guideline rate obtained from the Registrar’s Office [an evidence thereof to be enclosed]

[344 Sq. Yards @ Rs. 8000/- per Sq. Yards]

Rs. 8000/- per Sq. Yards

Rs 2.752 Millions as per Government Land Value

Assessed / adopted rate of valuation

Rs. 22000/- per Sq. Yards

Estimate value of land

344 Sq. Yards x Rs. 22000/-

= Rs. 7.568 Millions

TECHNICAL DETAILS

PART B [VALUATION OF BUILDING]

Type of Building

[Residential/ Commercial/ Industrial]

Type of Construction

[Load bearing / RCC / Steel Framed]

Year of construction

Number of floors and height of each floor including basement, is any

VALUATION

Fair Market Value as on 23.09.2014	Rs. 7.568 Millions

Distress Sale Value	Rs. 6.054 Millions

Government value of the property	Rs. 2.752 Millions

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

VALUATION REPORT

(GENERAL DETAILS)

Purpose of which the valuation is made

Bank of India

Secunderabad Branch

Valuation requested by

Manager

Bank of India, Secunderabad Branch

Date of Inspection

22.09.2014

Date on which the valuation is made

25.09.2014

List of Documents produced for perusal

1) Copy of Sale deed vide Doct No. 1120/99 dated 30.01.1999, SRO – Sarorrnagar, value as per deed Rs. 0.167 Million.

2) Copy of Approved HUDA Layout plan vide Permit No. 12181/MP2/HUDA, dated 16.02.2000, issued by HUDA

(All the above Xerox copy are perused and returned herewith)

Scope of Valuation

333 Sq. Yards/ 278.42 Sq. Mt.

Structures:

Year of construction:

Plinth areas:

Ground Floor:

First floor:

Age of the building:

Residual life of the building:

Inspection was conducted in the presence of

Along with Mr. E. Manipal Reddy

Name of the owners and his / her address with phone no. [Details of share of each owner in case of joint ownership]

Ms. E. Shivakumari

D/o. Mr. E. Manipal Reddy

Brief description of the property

It is an open land with a land extent of 333 Sq. Yards in HUDA approved layout. The said property is inspected along with Mr. Manipal Reddy. The site is surrounded with residential houses in the vicinity. Situated in developed locality in Sita Ram Nagar, Bairamalguda Village, Saroornagar Rev Mandal. The site is surrounded residential locality. The site is very near to Sub Registrar Office and is around 0.3 Km from Main Road.

Location of the property

ü Plot No./ Survey No.

ü Door No.

ü T.S. No. / Village / Colony

ü House No.

ü Mandal/ District

Plot No. 11, Sy. No. 36 and 32 Part

Ward No. 7 and Block No. 2

Sita Ram Nagar,

Bairamalguda (V), L.B. Nagar Municipality

Saroornagar Rev (M), R.R. District

Postal address of the property

Same as above

ü City / Town

ü Residential

ü Commercial Area

ü Industrial Area

City

Classification of the area

ü High/ Middle/ Poor

ü Urban/ Sub Urban/ Rural

Middle Class

Urban

ü Coming under corporation limit/ Village panchayat / Municipality

ü Permit No.

12181/MP2/HUDA, dated 16.02.2000

Whether covered under any State/ Central Government enactments [e.g. Urban Land Ceiling Act] or notified under agency area Scheduled area/ cantonment area

Boundaries of the property

ü North

ü South

ü East

ü West

ü North

ü South

ü East

ü West

As per deed

40’ wide road

Open land in Sy No. 37

Plot Nos. 8, 9 and 10

Plot No. 12

Existing

40’ CC Road

Neighbours land

Plot No. 7-3-18/10

Open land

Extent of site

ü As per deed

Dimensions

ü North

ü South

ü East

ü West

Extent of Land: 333 Sq. Yards

40’

75’

Extent of the site considered for valuation

333 Sq. yards

Whether occupied by the owner / tenant:

Since how long?

Rent received per month

Open land

CHARACTERISTICS OF THE SITE

Classification of locality

Middle Class

Development of surrounding area

Developed

Possibility of frequent flooding

Feasibility to the Civic amenities like School, Hospital, Bus stop, Market etc.

Within a distance of 1 to 1.5 km

Level of land with Teopographical condition

Leveled Land

Shape of Land

Rectangular

Type of use to which it can be put

Residential

Any use restriction

Is plot in Town Planning approved layout

Yes

Corner plot or Intermittent plot

Intermittent plot

Road facilities

Available

Type of Road available at present

CC Road

Width of road is it below 20 ft. or more than 20 ft

More than 40’ CC wide road

Is it a Land-Locked Land?

Water Potentiality

Available in Vicinity

Underground sewerage system

Available in Vicinity

Power supply is available in the site

Available in Vicinity

Advantages of the site

General remarks if any

Guideline rate obtained from the Registrar’s Office [an evidence thereof to be enclosed]

[333 Sq. Yards @ Rs. 8000/- per Sq. Yards]

Rs. 8000/- per Sq. Yards

Rs 2.664 Millions as per Government Land Value

Assessed / adopted rate of valuation

Rs. 25000/- per Sq. Yards

Estimate value of land

333 Sq. Yards x Rs. 25000/-

= Rs. 8.325 Millions

TECHNICAL DETAILS

PART B [VALUATION OF BUILDING]

Type of Building

[Residential/ Commercial/ Industrial]

Type of Construction

[Load bearing / RCC / Steel Framed]

Year of construction

Number of floors and height of each floor including basement, is any

Plinth area of floor wise

Condition of the building

Exterior-Excellent, Good, Normal, Poor

Interior-Excellent, Good, Normal, Poor

VALUATION

Fair Market Value as on 25.09.2014	Rs. 8.325 Millions

Distress Sale Value (80%)	Rs. 6.660 Millions

Government value of the property	Rs. 2.664 Millions

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

VALUATION REPORT

(GENERAL DETAILS)

Purpose of which the valuation is made

Bank of India

Secunderabad Branch

Valuation requested by

Manager

Bank of India, Secunderabad Branch

Date of Inspection

23.09.2014

Date on which the valuation is made

25.09.2014

List of Documents produced for perusal

1) Copy of Sale deed vide Doct No. 4803/2014, dated 06.09.2014, SRO – Devarakonda, value as per deed Rs. 1.800 Millions.

2) Copy of Approved plan vide Permit No. B.P. No. 41/2014/NST/HRO, LR No. D Dis No. 791/2014/HRO/H1, dated 01.09.2014 issued by Regional Deputy Director of Town and Country Planning, Hyderabad for Industrial Shed.

3) Copy of Land conversion vide Proceedings No. F/1168/2014, dated 24.07.2014, for conversion of agricultural land to Non-Agricultural land, issued by Rev Divisional Officer Devarakonda.

4) Copy of permission plan for Tirumala cottons and Ginning and Pressing mill for machinery hall, open shed for raw cotton storage, waste collection rooms, seed and bales shed, office building issued by Director of factories vide permit No. D Dis B/Nsg-I/969/2014 dated 14.08.2014

(All the above Xerox copy are perused and returned herewith)

Scope of Valuation – Extent of Land

Ac 6-00 / 24280.93 Sq. Mt. / 29040 Sq. Yards

Structures: Total permitted plinth area: 3226.89 Sq. Mt. / 34734 Sq. ft.

Year of construction: Construction work just started. Plinth beams laid

Plinth areas

Ground floor:

First floor:

Age of the building:

Residual life of the building:

Inspection was conducted in the presence of

Along with Owner Mr. C. Jaipal Reddy

Name of the owners and his / her address with phone no. [Details of share of each owner in case of joint ownership]

Mr. C. Jaipal Reddy

S/o Mr. C. Bal Reddy

Brief description of the property

It is an open land with a land extent of A/c 6-00 gts or 29040 Sq. Yards. The said property is inspected along with Owner Mr. C. Jaipal Reddy. Situated in developed locality in Brahmanpally (V) under Vavilcol grampanchayat limits, Gundlapally (M), Nalgonda District. The site is surrounded residential houses in the vicinity. The site is very near to Devarakonda main road. The site is around 2 km from Charuguda circle. Proposes to construct Ginning and Pressing unit with machinery hall, Open shed for raw cotton storage, Waster collection rooms, Seed and bales shed and office building. At present plinth beams are laid. All other works are pending.

Location of the property

ü Plot No./ Survey No.

ü Door No.

ü T.S. No. / Village / Colony

ü House No.

ü Mandal/ District

Sy. No. 40/EE, 42/1/A, 42/1/AA,

Brahmanpally (V), Vavilcol G.P.

Gundlapally (M), Nalgonda District

Postal address of the property

Same as above

ü City / Town

ü Residential

ü Commercial Area

ü Industrial Area

Industrial Area

Classification of the area

ü High/ Middle/ Poor

ü Urban/ Sub Urban/ Rural

Middle Class

Semi-Urban

ü Coming under corporation limit/ Village panchayat / Municipality

ü Permit No.

Whether covered under any State/ Central Government enactments [e.g. Urban Land Ceiling Act] or notified under agency area Scheduled area/ cantonment area

Boundaries of the property

ü North

ü South

ü East

ü West

As per deed

Land in Sy No. 42 and Land of Bakkaiah

Land in Sy No. 42

Neighbours land in Sy. No. 34

Extent of site

ü As per deed

Dimensions

ü North

ü South

ü East

ü West

Extent of Land: Ac 6-00 gts

Irregular

Extent of the site considered for valuation

Ac 6-00 gts

Whether occupied by the owner / tenant:

Since how long?

Rent received per month

Open land

CHARACTERISTICS OF THE SITE

Classification of locality

Middle Class

Development of surrounding area

Developed

Possibility of frequent flooding

Feasibility to the Civic amenities like School, Hospital, Bus stop, Market etc.

Within a distance of 1 to 1.5 km

Level of land with Teopographical condition

Leveled Land

Shape of Land

Irregular

Type of use to which it can be put

Residential

Any use restriction

Is plot in Town Planning approved layout

Yes

Corner plot or Intermittent plot

Intermittent plot

Road facilities

Available

Type of Road available at present

Gravel Road

Width of road is it below 20 ft. or more than 20 ft

More than 30’ wide road

Is it a Land-Locked Land?

Water Potentiality

No available

Underground sewerage system

No available

Power supply is available in the site

No available

Advantages of the site

General remarks if any

Guideline rate obtained from the Registrar’s Office [an evidence thereof to be enclosed]

[Ac 6-00 gts @ Rs. 300000/- per acre]

Government value of proposed structures:

Machinery hall 1273.09 Sq. Mt. / 13703 Sq. ft x Rs. 700/- =

Open shed 831.28 Sq. Mt. / 8948 Sq. ft. x Rs. 480/- =

Waste collection rooms 123.85 Sq. Mt./ 1333 Sq. ft. x Rs. 700/- =

Seed and Bales shed 937.88 Sq. Mt / 10095 Sq. ft. x Rs. 480/- =

Office building 59.79 Sq. Mt. / 643 Sq. ft. x Rs. 700/- =

Total govt value of the structures

Rs. 300000/- per acre

Rs. 1.800 Millions as per Government Land Value

Rs. 9.592 Millions

Rs. 4.295 Millions

Rs. 0.933 Million

Rs. 4.846 Millions

Rs. 0.450 Million

Rs. 20.116 Millions

Assessed / adopted rate of valuation

Rs. 500000/- per acre

Estimate value of land

Ac 6-00 gts x Rs. 500000/-

= Rs. 3.000 Millions

TECHNICAL DETAILS

PART B [VALUATION OF BUILDING]

Type of Building

[Residential/ Commercial/ Industrial]

Type of Construction

[Load bearing / RCC / Steel Framed]

Year of construction

Number of floors and height of each floor including basement, is any

Plinth area of floor wise

Condition of the building

Exterior-Excellent, Good, Normal, Poor

Interior-Excellent, Good, Normal, Poor

Specifications:

This is a RCC Framed Structure Building

Foundations and Basement

Super Structure

Plastering

Flooring

Roof, Staircase etc.

Doors

Windows

Services

ü Electrical

ü Sanitary

ü Water Supply

VALUATION OF LAND

Land

Ac 6-00 gts

Rate

Rs. 500000/-

Value

Ac 6-00 gts @ 500000/- per acre

Rs. 3.000 Millions

TOTAL ABSTRACT OF THE ENTIRE PROPERTY

PART A	Land	Rs. 3.000 Millions

PART B	Building	--

PART C	Other Items	--

TOTAL		Rs. 3.000 Millions

Fair Market Value as on 25.09.2014

Rs. 3.000 Millions

The Distress value or Forced sale value for the said for the said property could be due to various factors like location in Developed Residential area, condition of the building, Maintenance, accessibility, sentimental reasons, Vasthu conditions, shape of land and other factors etc., Keeping in view of the above few facts, 20% less than Fair Market Value.

The Distress value (80%) as on 24.09.2014	Rs. 2.400 Millions

Government value of the property	Rs. 1.800 Millions

Cost estimate for construction of the factory building and structures is submitted by owner to the bank for Rs. 24.685 Millions. It is checked and found to be reasonable.

Government value of proposed building and structures

Rs. 20.116 Millions

VALUATION

Fair Market Value as on 24.09.2014	Rs. 3.000 Millions

Distress Sale Value [80%]	Rs. 2.400 Millions

Government value of the property	Rs. 1.800 Millions

Reasonable Cost Estimate	Rs. 24.685 Millions

Government value of proposed building and structures	Rs. 20.116 Millions

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

VALUATION REPORT

(GENERAL DETAILS)

Purpose of which the valuation is made

Bank of India

Secunderabad Branch

Valuation requested by

Manager

Bank of India, Secunderabad Branch

Date of Inspection

23.09.2014

Date on which the valuation is made

25.09.2014

List of Documents produced for perusal

Copy of Sale deed vide Doct No. 6601/2012, dated 3^rd July 2012, SRO – Kalwakurthy value as per deed Rs. 0.726 Million.

(All the above Xerox copy are perused and returned herewith)

Scope of Valuation

Extent of Land: 2420 Sq. Yards / 0-20 gts

Structures:

Year of construction:

Plinth Areas:

Ground Floor:

First Floor:

Age of the building:

Residual life of the building:

Inspection was conducted in the presence of

Along with Owner Mr. C. Jaipal Reddy

Name of the owners and his / her address with phone no. [Details of share of each owner in case of joint ownership]

Mr. C. Jaipal Reddy

S/o Mr. C. Bal Reddy

Brief description of the property

It is an open land with a land extent of 2420 Sq. yards. The said property is inspected along with owner Mr. C. Jaipal Reddy. Situated in developed locality in Kalwakurthy (V), Mahaboobnagar District. The site is surrounded residential houses in the vicinity. The site is near Hariharapuram Colony and H. No. 12-43/3. The site is around 0.5 km from Devarakonda main road.

Location of the property

ü Plot No./ Survey No.

ü Door No.

ü T.S. No. / Village / Colony

ü House No.

ü Mandal/ District

Sy. No. 178/A

Kalwakurthy Village and Mandal

Mahaboobnagar District

Postal address of the property

Same as above

ü City / Town

ü Residential

ü Commercial Area

ü Industrial Area

Residential Area

Classification of the area

ü High/ Middle/ Poor

ü Urban/ Sub Urban/ Rural

Middle Class

Semi-Urban

ü Coming under corporation limit/ Village panchayat / Municipality

ü Permit No.

Whether covered under any State/ Central Government enactments [e.g. Urban Land Ceiling Act] or notified under agency area Scheduled area/ cantonment area

Boundaries of the property

ü North

ü South

ü East

ü West

ü North

ü South

ü East

ü West

As per deed

Plot belonging to Mr. Gopal Reddy

Open Land

Colony Road

Existing

Open land

Neighbours open land

Open land

30’ wide Gravel road

Extent of site

ü As per deed

Dimensions

ü North

ü South

ü East

ü West

Extent of Land: 2420 Sq. Yards/ 0.20 gts

Irregular

Extent of the site considered for valuation

2420 Sq. yards

Whether occupied by the owner / tenant:

Since how long?

Rent received per month

Open land

CHARACTERISTICS OF THE SITE

Classification of locality

Middle Class

Development of surrounding area

Developed

Possibility of frequent flooding

Feasibility to the Civic amenities like School, Hospital, Bus stop, Market etc.

Within a distance of 1 to 1.5 km

Level of land with Teopographical condition

Leveled Land

Shape of Land

Irregular

Type of use to which it can be put

Residential

Any use restriction

Is plot in Town Planning approved layout

Yes

Corner plot or Intermittent plot

Intermittent plot

Road facilities

Available

Type of Road available at present

Gravel Road

Width of road is it below 20 ft. or more than 20 ft.

More than 30’ wide road

Is it a Land-Locked Land?

Water Potentiality

Available in Vicinity

Underground sewerage system

Available in Vicinity

Power supply is available in the site

Available in Vicinity

Advantages of the site

General remarks if any

Guideline rate obtained from the Registrar’s Office [an evidence thereof to be enclosed]

[2420 Sq. Yards @ Rs. 5000/- per Sq. Yards]

Rs. 5000/- per Sq. Yards

Rs 12.100 Millions as per Government Land Value

Assessed / adopted rate of valuation

Rs. 3500/- per Sq. Yards

Estimate value of land

2420 Sq. Yards x Rs. 3500/-

= Rs. 8.470 Millions

TECHNICAL DETAILS

PART B [VALUATION OF BUILDING]

Type of Building

[Residential/ Commercial/ Industrial]

Type of Construction

[Load bearing / RCC / Steel Framed]

Year of construction

Number of floors and height of each floor including basement, is any

Plinth area of floor wise

Condition of the building

Exterior-Excellent, Good, Normal, Poor

Interior-Excellent, Good, Normal, Poor

Specifications

This is a RCC Framed Structure Building

Foundations and Basement

Super Structure

Plastering

Flooring

Roof, Staircase etc.

Doors

Windows

Services

ü Electrical

ü Sanitary

ü Water Supply

VALUATION OF LAND

Land

2420 Sq. Yards

Rate

Rs. 3500/-

Value

2420 Sq. Yards @ 3500/- per Sq. Yards

Rs. 8.470 Millions

TOTAL ABSTRACT OF THE ENTIRE PROPERTY

PART A	Land	Rs. 8.470 Millions

PART B	Building	--

PART C	Other Items	--

TOTAL		Rs. 8.470 Millions

Fair Market Value as on 25.09.2014

Rs. 8.470 Millions

The Distress value or Forced sale value for the said property could be due to various factors like location in Developed Residential area, condition of the building, Maintenance, accessibility, sentimental reasons, Vasthu conditions, shape of land and other factors etc. Keeping in view of the above few facts 20% less than Fair Market Value.

The Distress value (80%) as on 25.09.2014	Rs. 6.776 Millions

Government value of the property	Rs. 12.100 Millions

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

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. 61.46
UK Pound	1	Rs. 98.21
Euro	1	Rs. 77.45

INFORMATION DETAILS

Information Gathered by :	SVA

Analysis Done by :	KAR

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.

MIRA INFORM REPORT

Unit