MIRA INFORM REPORT

Report Date :

29.05.2008

IDENTIFICATION DETAILS

Name :	R.M.T. TOOLS (INDIA) PRIVATE LIMITED
Registered Office :	Amloh Road, Mandi Gubindgarh, District Fatehgarh Sahib -147 301, Punjab
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	21.08.1995
Com. Reg. No.:	16 -16921
CIN No.: [Company Identification No.]	U28939PB1995PTC016921
TAN No.: [Tax Deduction & Collection Account No.]	PTLR11958C
PAN No.: [Permanent Account No.]	AAACR8109E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Rolling Mill Parts.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 16116
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Directors are reported as experience and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office / Factory :	Amloh Road, Mandi Gubindgarh, District Fatehgarh Sahib -147 301, Punjab
Tel. No.:	91-1765-255642 / 309642 / 257477/645540
Mobile No.:	91-9872071006
Fax No.:	91-1765-252291
E-Mail :	contact@rmttools.com rmttools@yahoo.com aniljindal342@yahoo.com dattadigitech@yahoo.co.in
Website :	http://www.rmttools.com http://www.rollingmillplant.com

DIRECTORS

Name :	Mr. Singh Avtar
Designation :	Director
Address :	House No. 1006, Sector - 71, Mohali , Punjab, India.
Age :	51 Years
Qualification :	Graduate
Date of Appointment :	21.08.1995
Name :	Mr. Kumar Pawan
Designation :	Director
Address :	Gurunanak Colony, Mawdi Gubi, Faithgarh Sahib – 147 301, Punjab, India.
Age :	49 Years
Qualification :	Post Graduate
Date of Appointment :	21.08.1995
Name :	Mr. Kamaljit Singh
Designation :	Director
Name :	Mr. Jaswant Kaur
Designation :	Board of Director (Resigned form Board of Directos w.e.f. 22.12.2004)
Address :	Gurunanak Colony, Mawdi Gubi, Faithgarh Sahib – 147 301, Punjab, India.
Date of Appointment :	22.12.2004
Name :	Mr. Balbir Kaur
Designation :	Board of Director (Resigned form Board of Directos w.e.f. 22.12.2004)
Address :	House No. 1006, Sector - 71, Mohali, Punjab, India.
Date of Appointment :	22.12.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Avtar Singh	4515
Mr. Balbir Kaur	15500
Mr. Pawan Kumar	20195
Mr. Kamaljeet Singh	3300
Mr. Narinder Singh	1800
Ms. Ramanjeet Kaur	1800
Mr. Sarwan Singh	1800
Ms. R Kaur	1800
Mr. Ujal Didar Singh	1800
Mr. Kamaljeet Kaur	1800
Ms. Surinder Kaur	14300
Mr. Sadhu Singh	3000
Ms. Jaswant Kaur	6000
Mr. Bant Singh	1800
Ms. Harbans Kaur	1800
Total	81210

Equity Shares Breakup (Percentage of Total Equity):

Sr No.	Category	Percentage
1	Directors or relative of directors	100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Rolling Mill Parts.
Products :	COUPLING v Gear coupling v Flexo type coupling v Gear Coupling with Reduction Gear Box STANDS v Rolling Mill stand v Flywheel v Hi-Pinion stand v V-belt pulley STRAIGHTENING MACHINE v Alligator shear v Scrap shearing machine v Section shearing machine ROLLER GUIDE BOX v Roller twisted pipe v Roller guide box v Twisted guide MAGNETIC SEPARATOR v Magnetic Separator v PINCH ROLL v Pinch roll v SHEARING MACHINES v Bloom Billet Shearing Machine v Cold End Cutting Machine v Cold-flat End Cutting Shearing Machine v Plate Cutting Shearing Machine v Hot end Cutting Shearing Machine v Rotary Shearing Machine  (fix & non fix type) GEARS & GEAR BOXES v Gear for Reduction v Pinion stand gear v Double stage reduction gear Box SLAG GRINDING MACHINE v Slag crushing machinery1 FLYWHEEL v Flywheel
Exports :
Country :	v Iran v Dubai v Srilanka v Bangladesh v Afghanistan
Terms :
Selling :	L/C
Purchasing :	L/C

GENERAL INFORMATION

Suppliers :	v Deepak Singal Engineering And Builder Private Limited v AML Steels Limited v Riza Steel And Power Private Limited v Mountain Steels Private Limited v Dynamic Rolls
Customers :	v Manufacturers v Punjab Forging and Casting Private Limited v Sri Ganga Steel Enterprises Private Limited v GP Ispat Private Limited v Prem Steel and Allied Industries. v O.P. Group, (T.N.) v G.P. Ispat, Raipur v P.M.P. Group, (T.N.) v A.M.L. Steel Group, (T.N.) v Jai Bharat, (H.P.) v Mountain Steel, (H.P.) v Suraj Ispat (Gujrat) v Jai Hind (T.N.) v World Wide (Kerala) v Jai Jawala (H.P.) v Pren Steel (Bansal Group) (P.B.) v Sundershan Steel (J&K) v Chamunda Group (Gujrat) v Neelkanth (Gujrat) v Shri Krishna Steel (P.B) v Anil Steel Alloys (Karnataka) v Kiran Group (Gujrat) v M\S Aml Steel.Paundichari ( T.N ), Autoamatic Bar Mill v M/S P.M.P. Steel Rolling Mills Ltd. Chennai. ( Autoamatic Plant ) v M/S. Mountain Steel, Baddi ( H.P ), Automatic Bar Plant v M/S. Prime Pearl, ( Kajakistan ) v Qatar Steel ( Doha Qatar ) v M/S. World Wide Steel, T.N v M/S G. P. Ispat P. Ltd., Raipur.( Automatic Tmt Bar Mill ) v M/S. Hooghli Alloy & Steels , Calcutta v Saini Alloys, Raipur , C.G ) ( Structure Plant ) v M/S Sudarshan Steel Rolling Mills , Jammu. ( Automatic Plant ) v M/S Super Steels, Raipur. v Rija Steel, Raipur v Jai Jwala Steel, Baddi ( H. P ) v M/S Jai Hind Wire Rod Mills Ltd. Salem , Tamilnadu. v M/S. Mahamaya Ispat, Raipur
No. of Employees :	90
Bankers :	v State Bank of Bikaner and Jaipur, Mandi Gobindgarh v HDFC Bank Limited
Facilities :	Cash Credit Limit of Rs. 0.500 Millions
Banking Relations :	---
Auditors :
Name :	v Motia Khan, Chartered Accountant Address: Mandi Gobindgarh – 147 301, Punjab, India. v Mr. Sunil Deewan, Chartered Accountants Address : 48 – A, New Budha Dal Complex, Patiala – 147001, Punjab, India. v Goyal Dewan and Associates, Chartered Accountants Address: Motia Khan, Mandi Gobindgarh – 147 301, Punjab, India
Sister Concerns :	v R M T International Line of Business: Manufacturers of Rolling Mill Parts. v Northern Indian Heavy Forge Address : Village Kumbh Line of Business: Forging unit

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity shares	Rs. 10/- each	Rs. 1.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
81210	Equity shares	Rs. 10/- each	Rs. 0.812 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		0.812	0.812
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		3.217	0.744
4] (Accumulated Losses)		0.000	0.000
NETWORTH		4.029	1.556
LOAN FUNDS
1] Secured Loans		2.471	2.760
2] Unsecured Loans		0.533	2.941
TOTAL BORROWING		3.004	5.701
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		7.033	7.257
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.909	2.794
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000
	Sundry Debtors	3.013	0.687
	Cash & Bank Balances	0.242	0.465
	Other Current Assets	6.968	8.347
	Loans & Advances	1.215	0.662
Total Current Assets		11.438	10.161
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	9.318	5.703
	Provisions	0.000	0.000
Total Current Liabilities		9.318	5.703
Net Current Assets		2.120	4.458
MISCELLANEOUS EXPENSES		0.004	0.005
TOTAL		7.033	7.257

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		40.328	24.718
Other Income		0.000	0.000
Total Income		40.328	24.718
Profit/(Loss) Before Tax		2.540	0.001
Provision for Taxation		0.067	0.000
Profit/(Loss) After Tax		2.473	0.001
Expenditures :
	Depreciation & Amortization	0.000	0.429
	Other Expenditure	37.788	24.288
Total Expenditure		37.788	24.717

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006
PAT / Total Income	(%)	6.13	0.00
Net Profit Margin (PBT/Sales)	(%)	6.29	0.00
Return on Total Assets (PBT/Total Assets}	(%)	6.29	0.00
Return on Investment (ROI) (PBT/Networth)		0.63	0.00
Debt Equity Ratio (Total Liability/Networth)		2.31	7.32
Current Ratio (Current Asset/Current Liability)		1.23	1.78

LOCAL AGENCY FURTHER INFORMATION

Table

Parameters	Details
Statutory Approvals
Income Tax Registration (PAN)	AAACR8109E
Central Sales Tax Registration	90521011
VAT/TIN Registration	03711097363
Import Export Code	3007003989
Name of Bank	HDFC Bank
Current Account Number	03422560003123
Account Since	4 Years
Credibility Factors
India Mart Client Since	1 Year
Trade Affiliations
SSI Registration	Yes
Export Promotion Council	Yes
Chambers of Commerce Membership	No
Standards and Certifications
Quality Management Systems	No
Environment Management Systems	No
Safety Certificates	No
Product Certificates	No
Other Certificates	ISO

Form 8:-

Name of the Company	RMT TOOLS (INDIA) PRIVATE LIMITED
Presented by	Mr. Pawan Kumar
1. Date and description of the instrument creating or evidencing the charge	Hypothecation Agreement dated 14.03.1997
2. Amount secured by the charge /amount owing on security of the charge	Cash Credit Limit of Rs. 0.500 Millions
3. Short Particular of the property charged. If the property acquired is subject to change date of acquisition of property should be given	v Hypothecation of goods, Book debts v Equitable Mortgage of company land & building
4. Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest 14.5%, Margin 25%. Repayable on demand.
5. Names, address and description of the persons entitled to charge	State Bank of Bikaner & Jaipur, Mandi Gobindgarh
6. Date and brief description of instrument modifying the charge	Form C-2, Agreement of Hypothecation of Goods & Assets dated 22.02.2005 and FORM C-5 Letter regarding the grant of individual limits within the overall limit dated 22.02.2005 and recital letter of extension of equitable mortgage.
7. Particular of modification specifying the terms and conditions or the extent or operation of the charge in which modification is made and the details of modification	a) Working capital limit enhanced from Rs. 0.750 Millions to Rs. 1.500 Millions. b) Rate of Interest 0.75% below Bank PLR with a minimum of 10% p.a. at monthly rests. c) Margin: Stocks 25%, Book debts 40% d) Operation of Charge 100%

Form 8

Corporation identity number or foreign company registrations number of the company	U28939PB1995PTC016921
Name of the company	R.M.T. TOOLS (INDIA) PRIVATE LIMITED
Address	Amloh Road, Mandi Gubindgarh, District Fatehgarh Sahib -147 301, Punjab
This Form is for	Modification of charge
Type of Charges	Hypothecation
Particular of the charge holder	State Bank of Bikaner and Jaipur Address: Branch Office, Mandi Gobidgarh, Punjab – 147 301
Nature or description of the instrument creating charge	Agreement of hypothecation of goods and assets.
Date of the instrument creating charge	15.04.2006
Amount Secure by the charge	Rs. 2.200 millions
Brief of the principal terms and conditions and extent and operation of the charge	· C.C Limit 10.50% p.a · Margin: 25% · Term Loan 11% p.a · Repayment: 60 months Installments.
Description of the property charge whether it is a charge on	Immovable property
Brief description of the instrument modifying the charge under section 135	Agreement of hypothecation of goods and assets.
Date of instrument modifying the charge	15.04.2006
Particulars of the Present modification	Credit facilities enhances from Rs. 1.500 millions to Rs. 2.200 millions

Trade References

v Mountain Steels, Himachal Pradesh

v A M L Steels, Tamilnadu

v G P Ispat, Chandigarh

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 records 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 :

The 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.

The 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. 42.77
UK Pound	1	Rs. 84.33
Euro	1	Rs. 66.65

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, they have no basis upon which to recommend credit dealings	No Rating

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