MIRA INFORM REPORT

Report Date :

15.11.2008

IDENTIFICATION DETAILS

Name :	SMT MACHINES PRIVATE LIMITED
Registered Office :	Motia Khanmandi Gobindgarh, Fatehgarh Sahib, Mandi Gobindgarh – 147301, Punjab
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	06.09.1994
Com. Reg. No.:	16-15036
CIN No.: [Company Identification No.]	U29199PB1994PTC015036
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Supplier and Exporter of Rolling Mill Machinery, Rolling Mill Equipment and Spares

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 200000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are fair. Financial position is satisfactory. Payments are reported as slow but correct. However, the company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Motia Khanmandi Gobindgarh, Fatehgarh Sahib, Mandi Gobindgarh – 147301, Punjab, India
Tel. No.:	91-1765-557742
E-Mail :	vickyvishal@rediffmail.com
Website :	http://smt.tradeindia.com
Factory :	Post Box – 71, G T Road, Gobindgarh – 147301, Punjab, India
Tel. No.:	91-1765-256337/257742
Fax No.:	91-1765-255199
E-mail :	smt@smtmachines.org.
Website :	www.smtmachines.org.

DIRECTORS

Name :	Mr. Anand Kumar Jain
Designation :	Director
Address :	New Shastri Nagar, Mandi Gobindgarh, Fatehgarh Sahib – 147301, Punjab, India
Date of Birth/Age :	12.02.1970
Date of Appointment :	20.06.2000
Name :	Ms. Anju Jain
Designation :	Director
Address :	New Shastri Nagar, Mandi Gobindgarh, Fatehgarh Sahib – 147301, Punjab, India
Date of Birth/Age :	07.02.1971
Date of Appointment :	20.06.2000
Name :	Mr. Aman Mittal
Designation :	Director
Address :	Shastri Nagar, Near Sant Farid School, Mandi Gobindgarh, Fatehgarh Sahib – 147301, Punjab, India
Date of Birth/Age :	12.07.1973
Date of Appointment :	14.03.2003
Name :	Mr. Surendra Kumar Mittal
Designation :	Director
Address :	Shastri Nagar, Near Sant Farid School, Mandi Gobindgarh, Fatehgarh Sahib – 147301, Punjab, India
Date of Birth/Age :	19.10.1956
Date of Appointment :	31.05.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 29.09.2007)

Names of Shareholders	No. of Shares
Mr. Aman Mittal	235250
Mr. Surinder Kumar Mittal (HUF)	42500
Ms. Luxmi Mittal	1750
Mr. Pawan Kumar	500
Total	280000

(As on 31.03.2007)

Catgeory	Percentage
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Supplier and Exporter of Rolling Mill Machinery, Rolling Mill Equipment and Spares

Products :

Products	Item Code No
Complete Rolling Mill Plant	8455.10
Rolling Mill Parts	8455.10
Gear Box, Fly Wheel etc	8483.00

· Alligator Shearing Machies

· Bloom Cutting

· Shearing Machine

· Draw Winch or Discharge Roller Conveyor

· Reduction Gear Boxes

· Pinion Stands

· Universal Couplings

· Fly Wheels

· Lubrication System

· Lubrication System

· Mill Stands

· Pinch Rolls

· Double Rod Type Mechanic Pushers

· Slitting Lines

· Uncoiler Machine

GENERAL INFORMATION

Customers :

• Balaji Alloys
• A K Trading Private Limited
• D M International
• Metfabe Engineers
• Rachna Steel Corporation
• Samlo Koyenco Steel Company Limited
• Shree Ambica Alloys
• Tripura Ispat

Suppliers :

• Aar Kay Steel Products Limited
• AFL Private Limited
• A M Term
• BLR India Private Limited
• Commercial Traders
• Dhawan Industries
• East West Greight Carries Private Limited
• ISR Infomedia Private Limited
• Mago Tools Corporation
• Raj Fabricators
• TCH Travels

Bankers :

• Punjab National bank
• HDFC Bank
• ICICI Bank

• State Bank of India

Gobindgarh, Punjab, India

• Bank of Baroda

Mandi Gobindgarh, Mandi Gobindgarh – 147301, Punjab, India

Facilities :

Secured Loans	31.03.2007 Rs. In Millions
State Bank of India (Cash Credit Hypothecation Limit)	3.293
Term Loan	0.815
HDFC Bank	0.645
ICICI Bank	1.733
Total	6.486
Unsecured Loans	31.03.2007 Rs. In Millions
From Directors	1.437
From Corporate Bodies	2.188
From Banks (HDFC Bank Limited)	1.399
Total	5.024

Banking Relations :	Satisfactory
Auditors :	Datta Singla and Company Chartered Accountants
Address:	Battan Lal Road, Battan Lal Mill Complex, Mandi Gobindgarh – 147301, Punjab, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs. 10/- Each	Rs. 4.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
280000	Equity Shares	Rs. 10/- Each	Rs. 2.800 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		2.800	2.800	2.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		37.599	5.316	2.112
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		40.399	8.116	4.912
LOAN FUNDS
1] Secured Loans		6.486	3.213	5.357
2] Unsecured Loans		5.024	22.625	0.000
TOTAL BORROWING		11.510	25.838	5.357
DEFERRED TAX LIABILITIES		1.254	0.275	0.346
TOTAL		53.163	34.229	10.615
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		59.976	28.156	4.836
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		8.354	8.351	8.352
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.224	28.043	15.630
	Sundry Debtors	18.219	2.814	2.869
	Cash & Bank Balances	3.075	1.706	5.908
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	34.101	21.460	66.430
Total Current Assets		72.619	54.023	90.837
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	69.598	54.408	92.443
	Provisions	18.188	1.893	0.967
Total Current Liabilities		87.786	56.301	93.410
Net Current Assets		(15.167)	(2.278)	(2.573)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		53.163	34.229	10.615

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		230.327	121.709
Other Income		1.799	2.715
Total Income		232.126	124.424
Profit/(Loss) Before Tax		51.545	4.998
Provision for Taxation		19.145	1.894
Profit/(Loss) After Tax		32.400	3.104
Export Value		172.902	78.899
Expenditures :
	Manufacturing Expenses	5.264	2.780
	Administrative Expenses	6.424	1.347
	Raw Material Consumed	159.544	109.110
	Salaries, Wages, Bonus, etc.	1.992	0.953
	Payment to Auditors	0.137	0.212
	Interest	1.785	0.889
	Insurance Expenses	2.561	3.943
	Depreciation & Amortization	2.658	0.705
	Increase/(Decrease) in Finished Goods	0.217	(0.513)
	Other Expenditure	0.000	0.000
Total Expenditure		180.581	119.426

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	13.96	2.49	NA
Net Profit Margin (PBT/Sales)	(%)	22.38	4.11	NA
Return on Total Assets (PBT/Total Assets}	(%)	38.87	6.08	NA
Return on Investment (ROI) (PBT/Networth)		1.28	0.62	NA
Debt Equity Ratio (Total Liability/Networth)		2.46	10.12	20.10
Current Ratio (Current Asset/Current Liability)		0.83	0.96	0.97

LOCAL AGENCY FURTHER INFORMATION

Form 8:

Corporate identity number of the company	U29199PB1994PTC015036
Name of the company	SMT MACHINES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Motia Khanmandi Gobindgarh, Fatehgarh Sahib, Mandi Gobindgarh – 147301, Punjab, India
This form is for	Creation of charge
Type of charge	Immovable Property
Particular of charge holder	Bank of Baroda Mandi Gobindgarh, Mandi Gobindgarh – 147301, Punjab, India ssigob@bankofbaroda.com
Nature of instrument creating charge	Memorandum of Entry
Date of instrument Creating the charge	22.07.2008
Amount secured by the charge	Rs.100.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Extent and operation of the charge: 100%

Name of the company	SMT MACHINES PRIVATE LIMITED
1) Date and description of instrument creating the change	29.03.2004
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 5.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of properly of company, hypothecation raw material, finished goods, semi finished goods.
4) Gist of the terms and conditions and extent and operation of the charge.	ROI – 11% Margin – 25%
5) Name and Address and description of the person entitled to the charge.	State Bank of India, M Gobindgaerl
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

Fixed Assets:

• Land
• Building and Shed
• Plant and Machinery
• Tools and Tackles
• Typewriter
• Office Equipment
• Scooter
• Furniture and Fixture
• Computers

Website Details:

Machines Private Limited., an ISO 9001:2000 Certified Company, is a manufacturer, supplier and exporter of Rolling Mill machinery, Rolling Mill equipment and spares. The company manufactures all types of Castings & Forging Items, Rolling Mill plants, Engineering Goods and various other accessories. It also serves as manufacturers, suppliers and exporters of many more items that are manufactured on a Tailor made basis.

Subject is an organized and well equipped Mechanical Engineering company, situated on the G.T. Road at Anjali, Mandi Gobindgarh, Punjab State (India). It is basically catering to the needs of the Steel Rolling Mill Industry, with its services ranging from Design Development, Manufacture and Installation of Economical High productivity and fuel efficient Rolling Mill Plants on Turn Key basis. The unique design of the Mill Stands enables quick Roll Change with least down time to facilitate diversified product mix from the same Mill. The company provides an efficient after sales services and a round the clock Emergency Services for Mill Break Downs.

Profile

Business Type	Exporter , Manufacturer
Primary Competitive Advantages	SMT Machines Private Limited., is an ISO 9001:2000 Certified Company. Providing Consultancy, Design & Development, Inspection & Quality Control, Efficient After Sales Services and Emergency Services, the company is a single source for all the needs.
Memberships	Engineering Export Promotion Council, EEPC andFederation of Indian Export Organisations, FIEO.
Credit Rated	No
Product Range	The company's range of products is exhaustive and you get the entire requirement of Rolling Mill Plant equipment, machinery and spares from a single source.

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 :

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.49.46
UK Pound	1	Rs.73.17
Euro	1	Rs.62.96

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		54

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.	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, we 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