The GoldStar Group

TM

2014
This Document is a summary of our Operating Principles, Company Culture, how we operate as a team, sectors we operate in, Procedures, Projects Executed and Terms

Financing Division

INDEX
Section
1.0 2.0 3.0 3.1 4.0 5.0 6.0 7.0 7.1 7.2 8.0 8.1 9.0 10.0 10.1 11.0

Topic
Introduction GoldStar Philosophy of Financing Principles of Finance The Right team and Associations Functioning of the Organization Sectors of Finance Financial Products at GoldStar Sources of Finance Why GoldStar for your finances Having the Right Resource & Knowing what is right Optimal finance and Ill effects of wrong Non Optimal finance Procedure for Finance Agenda for Meetings Projects Executed Schedule of tentative terms Other Types of Finance Contact us

Page No.
1 2 5 6 7 8 11 12 13 13 15 15 17 19 20 21

The GoldStar TM Group Financing Division, Mumbai 2014.2014

1.0 Introduction & GoldStar Philosophy of Financing

We, at GoldStar follow the traits of Arthashastra and Relationship based financing which encourages Developments, Partnerships and Growth of all. We work on the principle of win win situation wherein the client, the financer, the media everyone grows together. We are not in the knack of self earning as this would amount to a short sighted approach, against our principles and is detrimental to the growth of everyone.

As one would appreciate, finance is something that shapes your future. Finance at the right time is considered as the largest bliss in the practical scenario. Companies, Corporates and all individuals base their life on this resource. Having said that, there are principles need to be adhered to with strict discipline. One may find finance from various sources but the basic difference is the principles on which this finance is sought with optimity. One may terribly wander off course should one procure finance from a wrong choice and non optimal resource.

Every project is different in nature requires a different approach and expertise in respective fields. We have identified and developed resources for every type of project. One resource of finance might not be applicable to all types of industries. Hence it is very important for us to know where to apply what and that is our job that is where our importance kicks in.

We treat every project of yours as our own and push our resources for your gain. Our on board panel takes every project under consideration and acts in a timely responsive manner advising you at every step. We give you timely quotes and different scenarios and do not treat your baby as a money making machine. Its when you grow, we grow

We have pursued International as well as National assignments in sectors of Real Estate, Healthcare, Industries (Pharma, Chemical, etc), Schooling, Education, Legitimate fund parking, Luxury and Resorts, Hotels, Multi Brand facilities, Management, International Import Export Finance, High volume BG and LC's.

We take great pride in the professional quality of our work achieved by uncompromising determination to achieve excellence in each and all of our projects. Our purpose is to offer quality projects that will exceed the expectations of our clients. We operate with the highest level of integrity and provide a rewarding quality of fair return for all connected.

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2.0 Principles of Finance

At GoldStar, we follow these empirical Principles of Finance. These have been formed from our experience and are key elements of our successful Business Model. We have made successful projects following these below.

a. Commitment Both Ways: This is the first and a key principle in finance. Commitment towards the project from the Client as well as our end is of topmost priority. Commitment is exhibited by the client in terms of provision of accurate, honest and transparent information. This information is in the form of:

i.

Meetings with key personnel viz. Promoter, Chartered Account/Chief Financial Officer/Company Secretary.

ii.

Provision of updated, Documentation of lands, valuations, permissions, IT returns, our forms, formats, etc as per our standard checklists on time as and when required.

iii.

Signing our Non Disclosure Agreements, Fee Protection Agreements and other formats deemed Professionally necessary. Honoring the same in every respect.

iv.

Keeping a track of the project progress and attending meetings as and when required.

It is of great importance that we have your updated correct information (doesnt matter even if it is truthfully negative) to advise you and pave the path towards the success of the project.

Commitment is exhibited from our side in the form of:

i.

Understanding your exact requirement with respect to meetings and documents at your end.

ii. iii. iv. v.

Correctly synthesizing the documents provided by you and deriving your key aspects. Advising on an derived optimal solution. Providing a clear and transparent quote in terms of processing fees and service charges. Adhering to the deadlines and communicating any delays to you if they occur.

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b. Confidentiality: This is an important cornerstone in the financial journey. Confidentiality is of prime importance at all ends. Taking a loan or seeking a Joint venture is not an untoward thing to do, but for that information with names to leak out in the open into the market is not desirable for any promoter due the following reasons: i. The knowledge of such information discounts his capability to perform himself financially in the market. If one has the knowledge that a particular promoter has taken an x sum of loan, the market exactly knows that this promoter needs his part of the project sold in an y amount of time; if not, he/she would incur losses on the repayments. In this knowledge of facts out in the open, the market will try to leverage this as a bargaining point resulting in the loss of profitability to the promoter. ii. This also affects his long term prospects of the promoter where the market develops a habit of aggressive negotiations with him. iii. The knowledge of a particular project in the market could spark unwanted competition from competitors and the promoter may loose the edge on this project. iv. Business advantage may be taken by such competitors by floating your idea in the market before you leaving the promoter high and dry, having lost all zeal in the project. v. To avoid attention from unwanted quarters.

Hence Confidentiality at all ends needs to be maintained and more so to protect the interest of the promoter.

c. Veracity: This is a very important aspect of financing. This principle needs to be followed for the success of any project. This clearly means, the right representation of facts, figures (existing and projected), documents, cashflows, business plans, previous defaults at any and all levels on the financial front of company, Promoters, etc, Cibil status and all other sought information. This information from you forms our eyes and ears and the navigation tools for the successful journey of a project. Any wrong information on this front will render a thorough waste of time at all ends and will demean all efforts; this is highly not desired.

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d. Time: It is said that Time is money, we actually follow it in letter and spirit and value time more than money. The time of all should be spent in an optimally efficient manner so that we all attain our respective goals. We work in a timely manner, the promoter provides documents in a timely manner, the promoter gets the desired funds in a timely manner. All of these times help us progress in life and should be strictly followed.

e. Transparency: This needs to be maintained between the promoter and us. This amounts to transparency in terms of facts and figures, documentation, etc. Without this aspect, the project would hit several hurdles giving up on all the principles above.

f. Trust: This is a supreme principle. Trust should be kept at all ends but blind trust is uninvited. All facts and figures should be supported with proper documentary evidence as that is what will give out the end result.

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3.0 The Right team and Associations A successful project is all about teamwork. No project can be done alone. We, at GoldStar have a dedicated and experienced staff well equipped to study, organize, arrange, advise, mitigate problems, take the uncertainties of your projects. These range from some leading veteran ex bankers from Banks as well as NBFCs to midlevel professionals to startup professionals to trainees. The organizational structure for a typical project would be:
Financing entity Banks, NBFC, Government, Private

Board at GoldStar

Accounts Chief Project Manager

Project Manager I

Project Manager II

Team Leader I

Team Leader II

Team Leader III

Team Leader IV

Staff in the Field/office for data entry, filing, collection of documents, other miscellaneous work

Client/Project

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3.1 Functioning of the Organization 1. The ground chain forms our ground staff that does simple data assimilation and entry jobs, field visits, collection of documents and other miscellaneous works. 2. All this information on projects is sought by the team leaders from the ground chain. 3. The Team leaders then filter, organize this information and pass them to the Project Managers. 4. The Project Managers then prepare reports based on the inputs given by the Team leaders and have a detailed discussion with the Chief Project Manager. 5. The Chief Project Manager then takes complete control of the project, seeks more information, inputs from Project Managers and after his thorough satisfaction, feeds it to the GoldStar Board as well as the Accounts Department at GoldStar. 6. The Board at GoldStar then has a weekly meeting to consider all projects put up by the Chief Project Manager and the accounts department. 7. Very high levels of filtration are applied to filter out and strategize for the project. 8. Based on the merits of the project, the project is assigned to the appropriate resource only from the Banking, NBFC, Government or Private Domain. The above system is followed diligently for the successful completion of the project.

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4.0 Sectors of Finance: At GoldStar, we facilitate Debt Financing as well as Equity partnerships, Joint ventures and a combination of Debt and equity finance for most of the sectors on an National as well as International level as below: 1. Real Estate 2. Infrastructure 3. Villas 4. Townships 5. Industrial Parks 6. Pharmaceutical 7. Chemical 8. Hotels & Luxury, Spa, Resorts 9. Infotainment 10. IT Sector 11. Electrical 12. Mechanical 13. Equipment 14. Manufacturing 15. Import & Export 16. Trade 17. Commodities 18. Finance 19. Bonds 20. Cement Plants 21. RMC Plants 22. Vehicle Based (as Mortgage) 23. Paper Industries 24. Solar Projects 25. Hydropower Projects 26. Mills

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5.0 Financial Products at GoldStar: At GoldStar, we have different financial products namely:

a. Project Finance: In this product, the basis for finance would be the Project as the prime. This is a more thorough type of financing requiring the financial parameters as well as the project to be well planned, coordinated, clear with rating agencies, permissions, acquisitions, policies, land, etc. This type of resource is generally the one with the most economical for the client in terms of Rate of Interest, but requires all the parameters in place which, few projects get through. Time taken is the maximum for this product as compared to others and disbursement is in stages and monitored. This product can be operated by us at a Global Level. Banks, NBFCs, Private finance, all are applicable at varying rates as described in further sections. There is no limit to our resources, nor any upper ceiling of amount in this product.

b. Loan Against Property: This is a more flexible type of product where the property is considered as the governing factor for obtaining finance. The emphasis is given to the Property, its valuation, NOCs from all owners and title clearance. This product does not mandatorily require a specific project to be in place. The regulations required for this product are limited and it fits well into all industries. Approvals are far quicker and Interest rates are nominal, disbursement may be in stages or one time settlement. This product can be operated by us at a Global Level. Less of Banks and more of NBFCs, Private finance, all are applicable at varying rates as described in further sections. There is no limit to our resources, nor any upper ceiling of amount in this product.

c. Combination of Project Finance and Loan Against Property: This is a derived product at GoldStar where part of the project is treated under Project Finance and Part under Loan Against Property. The terms of this products are varying and depend on the merits of the project, land valuation, etc. Less of Banks and more of NBFCs, Private finance, all are applicable at varying rates as described in further sections. There is no limit to our resources, nor any upper ceiling of amount in this product.

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d. Pure Property Based, collateral Finance/Personal Finance: This product does not depend on any project but purely on collaterals in the form of Lock and Key flats, premises with Occupation certificates, clear titles, etc. Non cibil cleared Promoters are encouraged towards this product. There is no limit to our resources, nor any upper ceiling of amount in this product. This is an immediate type of finance which can render you the money required by you almost immediately. There are subdivisions in this product as under: i. Secured from Banks/Mortgage Finance: This sub product is secured type of finance sought from Banks where the security is kept with the banks under strict regulations and the finance is obtained. This is a less favorite type of finance as most promoters prefer the unsecured route to keep things off the balance sheet. There is no limit to our resources, nor any upper ceiling of amount in this product. ii. Unsecured from Banks: This product depends more on your previous track record of payments, previous cashflows, maintenance of balance in the accounts, profit registration by your company, IT returns, Stable Balance sheets, etc. The maximum ceiling for this product us Rs. 5 crore per qualifying company. iii. Unsecured from Private Resources: This product depends more on your previous track record of payments, previous cashflows, maintenance of balance in the accounts, profit registration by your company, IT returns, Stable Balance sheets, etc. The maximum ceiling for this product is Rs. 20 Lakhs per qualifying individual. iv. Secured with Private Resources: This product purely relies on security provided by the individual, Company. This product renders immediate finance. This requires the property and titles to be clear and ready to be mortgaged. The securities accepted are generally Lock and Key clear title flats with Occupation certificates, registered vehicles, machines viz personal vehicles, JCBs Poclains, Dumpers, Trucks, etc There is no upper limit for this product.

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e. Non Performing Assets (NPA): There are Companies that turn into Non Performing Assets either by wrong advice, difficult markets, economy, etc. At GoldStar, we have the means and resources to revive the NPA amount plus give you working capital to keep your operations alive. The work on these types of projects is huge but, it is our firm resolve to help you and get you out of the unfortunate situation.

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6.0 Sources of Finance: There are different sources of Finance in the armory of GoldStar. We have established profound working relations with all the resources a below: The sources of finances are as below: 1. Banks 2. Non Banking Financial Companies (NBFC) 3. Government resources 4. Private Sources 5. Foreign funds from Singapore, Mauritius and other International Destinations. 6. Foreign Direct Investments (FDI) 7. External Commercial Borrowings (ECB) 8. The World Bank (WB) 9. International Finance Corporation (IFC) 10. International Monetary Funds (IMF) 11. Other Missionaries all over the world.

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7.0 Why GoldStar for your Finances: Finance always takes place on three things relationships, relationships and relationships.

The main reasons and why we have an edge on most is due to our basic operating principles, our company culture, our relationships and our undisputed determination to strive very hard for your project. The entire machinery at GoldStar stands with best of their knowledge, skillsets firm and grounded for your project. We have a sound team, excellent coordination (as demonstrated in our previous sections) in all quarters of the world. We stand to deliver with discipline, advise you in the best possible manner and move ahead in a timely manner. Our team advises you on your balance sheets, restructures it if required, specifically advises you how to accommodate the incoming finance so that only the required taxes and duties are paid; this is a basic right of yours and you should get it. We have been in the Construction industry for over 35 years and hence have a firm grip on projects.

Financing is a Science and mere knowledge of existence resources is not enough (as this is commonplace knowledge). The key lies in understanding your requirements, applying our knowledge, teamwork, relationships and experience to the project and deriving an Optimum resource for you. As one would appreciate, maximum projects fall in the domain of Private resources. Access to Private resources at Local, Domestic and International levels in India as well as in different parts of the world is the forte of GoldStar.

The word Optimum defines the capability of a Finance Company. Optimum means to derive a solution which just satisfies your requirement in a way which suits you best at the best Rate of interest, Best of processing fees and the best of service fees. Extremely few Finance Companies have the grip to give you an optimal solution. If this is not given to you, the effects are disastrous to the companies at times. Incorrect interpretation of financial parameters and assigning of wrong non optimal resource can result in a promoter paying wrong interest rates over the years, paying excess taxes, excess fees, etc. With an average loan period of 5 to 10 years, even an extra percent would result in the loss of crores of rupees to the promoter, loss of market credibility, etc. Moreover if the promoter is not able to pay off the interest on time, they could turn to Non Performing Assets thus capsizing the entire firm, the promoters, stakeholders, everyone connected . It could practically ruin a Company. The jargon of responsibility on our shoulders is huge and we have been managing it consistently over the years! Hence GoldStar Financing. The GoldStar TM Group Financing Division, Mumbai 2014.
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7.1 Having the Right Resource & Knowing what is right: Having resources and that too the right ones is the true mark of a Finance Company. Further, having the right resources and knowing how and where is apply them is further fineness in the job. The true purpose of finance to a promoter will be satisfied only when the Financial resource assigned to him is sustainable to be him with regards to future growth, financial rations, repayments, etc.

7.2 Optimal finance and Ill effects of wrong Non Optimal finance As explained in the previous sections, for the welfare of the Promoter, finance should always be provided and sought for at Optimal terms. This results in the following of the intended growth of the Company, the promoter, the stakeholders and all individuals connected to the project.
Below is A Bone Chilling real life story where a Blossoming Business was shot down with catastropic failure by ill advice for procurement of finance. A big wake up call. This is a true story This is with respect to a recent NPA project awarded to us recently. A particular firm from India (well known) had a clean (with no defaults) heafty balance sheet in a seeds business. Over the years, their business grew manifold bringing great prosperity all over. After a few years of successful operation, they decided to go for a small refinery so that they could make their own oil and grow their business. This is when the devil rang a bell. They approached a particular finance company to render them finance for their expansion. Without any caution, without any tentative terms, without any paperwork, without having done due diligence on the company, they mandated this finance company. Initially, the company did a sweet talk and gave them big assurances (all verbal) that their work would be done on most professional terms possible and that they would be given their requisite amount of loan within 90 days. They gleefully agreed without confirming the terms. The finance company did tough paperwork to ensure that they would be able to take advantage of these innocent souls. Initially this company had no resources and they outsourced it to a company. The new company first led them to a bank promising sanction. The bank approved the loan.They mortgaged all their land, property, assets into this loan. Now, the firm wanted an enhanced santion so this new finance company led them to an nbfc. This nbfc promised them sanction on the condition that they bring a 90 day letter from the bank saying that they no longer wished to avail their facility and would take over the loan (Again, no terms were given). The firm got this letter and the nbfc transferred and mortgaged all their

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assets. After mortgaging, the nbfc gave them the terms of a whopping interest rate of 36% per annum, exorbitant unheard of processing fees and equally inflated service charge (without any npa, defaults, profit balance sheet, worst in history). As a result of this, the companies finances, production, plant nose dived. They were unable to pay this 36%. On top of that the nbfc complused them to pay DAILY interest by 10 am everyday. This caused a catastrophic failure of the company. As they did not pay the interests, the company ran into an NPA, shutdown of their plant, employees removed, personal life destroyed, promoter suffered a stroke, all turned into a big zero. A perfectly well functioning completely sound company went into an NPA. We are now reviving this company and will use our length and breadth to salvage them. This is a living example of how important we are, how important the right advice and right resources are. Always be very very cautious when you select a finance company.

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8.0 Procedure for Finance: 1. Concall with the promoter to get a general idea of the project and determine if prima facie workable. 2. Receipt of Letter of Intent, Advisory fees (one time non refundable, all other fees after disbursement), Information memorandum as a hard Copy Parallel with a soft copy as an email sent to our office address. 3. Communication of tentative terms for ROI, term of loan and fees. 4. Signing of NDA, FPA (Fee Protection Agreement/Memorandum) to protect interest of all connected people followed by courier of hard Copy Parallel with a soft copy as an email sent to our office address. 5. Meeting with the financing entity and submission of detailed documentation as per checklist. 6. Initial perusal, Site Visits, Initial due diligence, meetings with Promoter, CA/CFO/Company Secretary of the concerned firm. 7. 8. Due diligence as deemed by the financing entity. Communication of final terms viz. ROI, term of loan.

9. Setting of deadlines for disbursal. 10. Disbursal in stages or one time as mutually convenient.

8.1 Meeting agenda with the financing entity: a. Understanding the promoters, their background, experience. b. Understanding the past projects of the group. c. Understanding the past and current banking facilities. d. Understanding the project(s) in hand and the ones under consideration with respect to construction area, prevailing rates, valuations (book value and market value), construction cost, ratios derived and required. e. Discussion of previous and current Balance sheets. f. Advising on these balance sheets and the projected ones to comfortably accommodate the incoming finance. The GoldStar TM Group Financing Division, Mumbai 2014.

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g. General procedures, processing times for finance. h. Advising on ideal parameters required to optimize the interest rate (ROI) thus benefiting the client. i. Discussion on the first layer of site visits to be conducted after the meeting. j. Booking of proposal for finance if things are comfortable. k. Other information and interactive discussion.

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9.0 Projects Executed: We, at Goldstar have executed projects in the Local, Domestic, National and International levels in a variety of industries as enumerated before. Confidentiality as mentioned before is at its pinnacle for the client, hence no names would be given out but an overview of the projects done by us is as below (One per type is listed):

Category Nature of Project

Geographic Location

Industry

Description

1.

Loan Against Property (LAP)

Mumbai (Local)/South/North India

Real Estate

These category of projects were done for local builders in Mumbai with the Secured finance against lock and key flats and other means.

2.

Unsecured Finance

Mumbai

Personal

Unsecured finance was provided to individuals/companies under this category.

2.

Debt Finance

Mumbai (Outskirts)

Resort

This project was done for a resort on the outskirts of Mumbai.

3.

Joint Venture (JV)

Mumbai

Real Estate

These category of projects were done as JV for SRA (Slum rehabilitation Authority),

Redevelopment Schemes by us between two or more entities. 4. Project Finance Mumbai/North/South India 5. Project Finance/LAP Combination South India University Hotel Industry Leading chains of Hotels were financed. Many universities were financed with a combination of LAP and Project Finance. 6. Project Finance North/South /Central India Hospitals Hospitals at locations as indicated were financed as pure project finance The GoldStar TM Group Financing Division, Mumbai 2014.
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7.

Project Finance/LAP/NPA

North India

Mill

A paper mill that had run into an NPA was revived with a working capital.

8.

NPA

North India

Oil and Seeds

This was a distressed company into oil and seeds business.

9.

Project Finance

United States/Honduras/New Zealand

Hotel/Tourism

Prominent chain of Hotels wanted to set up a hotels, we helped finance at very good rates at flexible terms

10.

Project Finance/JV

US/Europe

Townships

Major companies of locations wanted to set up townships. We helped finance through our

resources at good terms 11. Debt Finance South India Power project We helped them setup Solar power plant at 2 locations

The above projects are a category which refer to sectors where we have worked and NOT the total number of projects.

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10.0 Schedule of Tentative Terms The below mentioned are the formats of finance projects that we do and have a thumping impression in the market. Once successfully admitted, these proposals generally do not fail from our side but only fail from the other end due to constraints in the project. We do not work with long chains.
Processing fees (%) GoldStar only. Respective Financial Entity fee may be seperate Sr.No. 1. 2. 3. 4. Resource Bank NBFC Private NPA ROI (%) Per annum 11.5 to 16 12 to 24 8 to 12 12 and above 1 1 1.5 2 Service Charge (%) 2+ 4+ 5+ 5+

Above terms are tentative and will/may change as per project Sharing of Service charge for Consultants shall be equal among the team. Non Performing Assets: NPA projects are done by us with an initial perusal fee of Rs. 15,000. One time settlement possible. Many more options available. Time frame is 30 to 45 business days for above.

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11.0 Other types of finance

Processing fees (%) Sr.No. Resource ROI (%) 1.5 to 3.5/month (Immediate Money) 10 over the year Service Charge (%)

1. 2.

Private (Secured) Bank (Unsecured) Private

1.5

4+ 2+

3. (Unsecured)

1 to 3/month

3+

Immediate finance : Flats as collaterals whose Occupation Certificate (OC) has arrived Minimum lockin period is 3 months with one month interest in advance. Unsecured finance Banks: upto 5 Cr Unsecured private finance: upto 10 lakhs Vehicle as mortgage sanction amount 50 to 60% of Valuation.

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12.0 Contact Us We can be contacted on the below mentioned coordinates:

The GoldStar Group, C1, Vibha CHS, Ramchandra Lane, Malad West. Mumbai 400064. Maharashtra. India.

Contacts: Phone (Telefax): International from Phone +912228822589, International from any Phone 011 91 2228822589 Domestic: 022 28822589 Cell Phone: +918108190382 Emails: projects@rachcons.in, projects@thegoldstargroup.in nmistry@rachcons.in

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