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22/02/2012 TO THE BRANCH MANAGER PUNJAB & SIND BANK IFB,LUDHIANA REG:- YOUR ZONAL OFFICE LETTER DATED

20/02/2012 REF:- CREDIT FECLITIES TO BE SANCTIONED TO M/S NEEL KANTH ISPAT SIR, WE ARE GIVING YOU PARAWISE REPLY AS FOLLOWS:1 THE REPLY SHALL BE GIVEN BY THE BRANCH 2 THE VALUE OF PROPERTIES TO BE OFFERED AS COLLERTAL SECURITY IS BASED ON JUDGEMENT AND MARKET VALUE AND NOT ON THE HIGHER SIDE.AS FAR AS ASSETS/LIABILITIES STATEMENT OF JAGRITI GARG AND POONAM GARG THE 295 SECTOR 5 B NEWSHASTRI NAGAR MANDI GOBINDGARH,THE PROPERTY IS HAVING HALF SHARE OF POONMA AND JAGRITI AND SAME IS WITH 323 SECTOR 4A HAVING HALF SHARE OF SANGEETA GUPTA AND VIPIN GUPTA.IT IS NOT REPATED BUT SAME HAS BEEN SHOWN AS PER SHARE IN THE PROPERTY. 3 THE ACCOUNTS OF THE PARTNERS/FIRM/GURRANTORS/GROUP CONCERNS ARE RUNNING REGULAR THIS WE CONFIRM FROM OUR SIDE. 4 WE ARE GOING TO APPLY THE REGISTRATION OF THE FIRM AND SAME SHALL BE DONE IN DUE COURSE OF TIME. 5 WE ARE ENCLOSING VAT RETURNS FROM 1.4.2011 TO 31.12.2011 AS REQUIRED BY YOU. 6 THE FIRM HAD RUN THE ROLLING MILL ON LEASE BASIS THAT IS WHY SAME HAS NOT BEEN COME IN FIXED ASSETS OF THE FIRM IN THE BALANCE SHEET. 7 THE REPLY OF THE SAME SHALL BE GIVEN BY THE BRANCH 8 WE JUSTIFY THE CONCESSION IN PROCESSING FEES,COMMISSION CHARGES & COMMISSION CHARGES DUE TO TUFF COMPETION IN THE MARKET AND HIGH VALUE OF THE ACCOUNT.WE HAVE ALREADY TRANSECTED 18 CRORES TRANSECTION IN ONE AND HALF MONTH IN BANK ACCOUNT WHICH IS SELF SPAEKING.

9 WE CONFIRM THAT IN FUTURE WE HAVE NO PLAN TO CHANGE THE PARTNERS IF THE SAME SHALL BE DONE BANK PRIOR PERMISSION SHALL BE TAKEN. 10 AS PER CIBIL REPORT IN THE NAME OF SH.VIJAY GUPTA BALANCE IN AUTO LOAN RS.2766.00 HAS BEEN SHOWN AS OVER DUE IN AUTO LOAN BUT THE SAME SHAL BE DEPOSITED AND RECEIPT SHALL BE PROVIDED TO YOU AND THERE IS NO OVER DUE AMOUNT OUTSTANDING IN TBHAT ACCOUNT. PROPERTIES OFFERED AS COLLATERAL SECURITY:1. WE HAVE ALREADY GIVEN THE PHOTOCOPY OF THE PROPERTIES TO YOUR APPROVED ADVOCATE AT KHANNA THE SAME SHALL BE GIVEN BY HIM THE LEGAL OPINION WITH IN THREE TO FOUR DAYS . THE REPLY OF THE SAME SHALL BE GIVEN BY THE BRANCH & BANK ADVOCATES. THE ADDRESS OF TWO PROPRIETIES ARE SAME DUE TO HALF SHARE OF THE OWNERS THAT IS THERE ARE TWO OWNERS OF THE SAME PROPRIETIES DIVIDED IN TO HALF OF THE EACH OWNER.

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FINANCIAL POSITIONS:1 WE RECTIFY CMA DATA AS PER THE REQUIREMENT AND WE SHALL TAKE THE FIGURES OF 31.03.2010 INSTEAD OF 15.03.2010 . IN CONVEYENCE CAUSED TO YOU IS HIGHLY REGRETED . 2. THE SALES HAS ALREADY BEEN ACHIEVED OF RS. 42-CRORES AS ON 31.12.2011 AND THE PROJECTED SALE FOR RS. 60-CRORES FOR THE FINANCIAL YEAR ENDED 2011-2012 SHALL BE ACHIEVED EASILY AND IN FUTURE WITH THE BANK HELP IN FINANCIAL YEAR 2012-2013 WE CAN ACHIEVE THE PROJECTED SALE OF RS.80-CRORES. 3. THE PROFITIBILITY SHOWN IN CMA DATA FOR THE FINANCIAL YEAR 2011-2012 SHALL BE ACHIEVEABLE. WE HAVE ALREADY TCS OF RS.1.76 LACS AS ON 31-12-2011 AND THE REST OF DUE TAX SHALL BE DEPOSITED ON 15-MARCH-2012 AS PER INCOME TAX PROIVISIONS. 4. ALLTHOUGH SUNDRY CREDITORS HAS BEEN PROJECTED ON LOWER SIDE BUT IT IS IN THE PERMISIBLE LAB EL OF THE BUSINESS . AS BANK LIMIT HAS BEEN SANCTIONED BY YOUR BANK THAN SUNDRY CREDITORS SHALL BE ON THE LOWER SIDE , PURCHASES SHALL BE DONE WITH THE BANK FUNDS . 5. CASH & BANK BALANCE IS NOT PROJECTED ON THE HIGHER SIDE IT INCLUDDES MARGEN MONEY ON THE LC LIMIT BUT WE ENSURE YOU THAT WE SHALL KEEP THE MINIMUM CASH AS PER BUSINESS

REQUIREMENT. IN THE PAST WE HAVE NO LC LIMITS THAT IS WHY CASH & BANK BALANCE IS ON THE LOWER SIDE. 6. INVENTORY LEVEL IS PROJECTED ON THE OPTIMUM LEVEL AS IT IS WITHIN ONE MONTH OF THE SALES . IN THE PAST END THE LEVEL IS LOWER DUE TO LOWER SALES VOLUME AND NO BANK FACILITIES AVAILED BY US. 7. WE HAVE ALREADY INVESTED CAPITRAL OF RS. 220-LACS AS ON 31-122011 AND THE BALANCE OF RS. 110-LACS INJECTING AS FRESH CAPITAL SHALL BE INVESTED BY THEIR OWN SOURCES AND UNSECURED LOANS FROM RELATIVES & FRIENDS. 8. INCREASE IN FIXED ASSETS AND TERM LIABILITIES HAS BEEN PROJECTED DURING 2011-2012 DUE TO INCREASE IN BUSINESS AND SAME SHALL BE INVESTED IN VEHICLES SOFTWARES & OTHER INFRASTURE OF THE FIRM BY TAKING THE LOAN FROM BANK OR FINANCIAL INSTITUTION WHICH INCREASE THE FIXED ASSETS AND TERM LIABILITIES . IN 2012-2013 THE SAME FIGURE HAS BEEN THERE AFTER PAYING THE INSTALLMENTS. 9. CURRENT RATIO IS PROJECTED AS 1.47 AND TOL/TNW IS 3.05 WHICH IS WITH IN THE PERMISIOBLE LIMIT OF THE BANK BUT IN THE PREVIOUS YEAR THAT IS 2011-2012 CURRENT RATIO IS BELOW THE BENCH MARK LEVEL DUE TO FREQUENT CHANGE OF PARTNERS & MANUFACTURING ACTIVITIES WHICH IS NOW CLOSE DOWN BY THE PROMOTORS. 10. NET WORTH OF THE PARTY IS GOING TO INCREASE IN 31-03-2012 & WE ENSURE YOU THAT PROFITS OF THE FIRM SHALL BE ADED BACK TO IMPOROVE THE TOL/TNW . 11. WE CONFIRM THAT SUNDRY DEBTORS & CREDITORS ARE NOT MORE THAN SIX MONTHS OLD. WE TRUST THAT WE HAVE REPLY ALL THE QURIES RASED BY YOU & WE REQUEST YOU TO KINDLY SANCTIONED CREDIT FACILITY TO US AT THE EARLIEST. THANKING YOU YOURS FAITHFULLY FOR NEELKANTH ISPAT

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