MIRA INFORM REPORT

Report Date :

30.12.2011

IDENTIFICATION DETAILS

Name :	NUGEN MACHINERIES LIMITED
Registered Office :	Plot No. 16,17,18, Block No. 388, Changodar Industrial Estate, Sarkhej-Bhavla Highway, Changodar – 382210, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	02.04.1990
Com. Reg. No.:	04-13570
Capital Investment / Paid-up Capital :	Rs. 20.150 Millions
CIN No.: [Company Identification No.]	U29194GJ1990PLC013570
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture, Exporter and Importer of a Hydraulic Press Brakes Machine
No. of Employees :	125 Approximately

RATING & COMMENTS

MIRA’s Rating :

Ca (15)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company is under severe pressure. There appears huge accumulated losses recorded by the company. However trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Umesh
Designation :	Accountant
Contact No.:	91-2717-250964
Date :	29.12.2011

LOCATIONS

Registered Office/ Factory :	Plot No. 16,17,18, Block No. 388, Changodar Industrial Estate, Sarkhej-Bhavla Highway, Changodar – 382210, Gujarat, India
Tel. No.:	91-79-3750380/3750963/3750964
Fax No.:	91-79-3750310
E-Mail :	info@nugenindia.com doshiac@gmail.com csdoshiac@gmail.com
Website :	www.nugenindia.com
Area :	50000 sq.ft
Location :	Owned
Head Office :	17 Changodar Industrial Estate, Sarkhej-Bawla Highway, Town Changodar, Ta. Sanand Dist. Ahmedabad – 382 213, Gujarat, India
Tel. No.:	91-2717-250380/250963/250964
Fax No.:	91-2717-250310
E-Mail :	info@nugenindia.com
Branches :	Bangalore, Karnataka, India
Mobile No.:	91-93798 19080 (Mr. V. Jambanna)
E-Mail :	bangalore@nugenindia.com

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Samir Merchant
Designation :	Director
Address :	A/5, Shalimar Complex, Mahalaxmifive Road, Paldi, Ahmedabad, Gujarat, India
Date of Birth/Age :	45 years
Qualification :	B.com
Date of Appointment :	02.04.1990
DIN No.:	01729681

OTHER DIRECTORSHIP

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U29194GJ1990PLC013570	Nugen Machineries Limited	Director	02/04/1990	02/04/1990	-	Active	NO

Name :	Mr. Maganlal Chauhan
Designation :	Director
Address :	6, Vibhuti Apartment, Jagabhai Park, Maninagar, Ahmedabad, Gujarat, India
Date of Birth/Age :	80 years
Qualification :	B.com
Date of Appointment :	21.07.2003
DIN No.:	02659622

OTHER DIRECTORSHIP

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U29194GJ1990PLC013570	Nugen Machineries Limited	Director	21/07/2003	21/07/2003	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Umesh
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Samir M. Merchant	810000
Gita S. Chauhan	565000
Navin R. Bhadrakiya	26250
Laila S. Merchant	125000
Naran L. Vaja	75000
Rini S. Merchant	25500
Prashant R. Bhatt	15000
K. S. Bhatia	15000
Sanjay Majmudar and Hiten Parikh	5000
Arvind K. Patel	25000
Kirit A. Patel	25000
Jayesh A. Patel	5000
Rahul Patel	20000
Pradip P. Shah	10000
Kantilal N. Shah	15000
Mukesh K. Shah	20000
Mahesh K. Shah	15000
Devika P. Doshi	10000
Jayesh N. Shah	20000
Shashikant M. Chauhan (HUF)	75000
Naran Vaja HUF	50000
Maganbhai D. Chauhan	38250
Aziz S Panjwani	25000
Total	2015000

AS ON 30.09.2010

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		88.77
Other top fifty shareholders		11.23
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture, Exporter and Importer of a Hydraulic Press Brakes Machine

Products:

ITC Code	Product Description
8979	Machine Tools (Press Brake)
8479	Machine Tools (Press Shear)
--	Servicing of Above Machines

Exports :

Products :

• Hydrolic press brakes

Countries :

• Dubai
• South Africa

Imports :

Products :

• Raw materials

Countries :

• China
• Germany

Terms :

Selling :

Cash, Advance

Purchasing :

Cash (15-30 Days)

GENERAL INFORMATION

Suppliers :

· D B Engineering

· High Flem Engineering

Customers :

• Wholesaler
• Retailers
• Larsen and Toubro
• Alfa Laval Agri (I) Limited
• Advani Oerlikon Limited.
• Mahindra and Mahindra Limited.
• Batliboi International Limited.
• Videocon Appliances Limited.
• Blue Star
• LG Electronics India Limited.
• HMT (International) Limited.
• Powerica Limited
• Gujarat Appollo Equipments
• Ratnamani Tubes
• Trumac Engineering Company Limited.
• Kalpataru Power Transmission
• Carrier Refrigeration
• Indian Space Research Organization (ISRO)
• BHEL
• Hindustan Auronotics Limited. (HAL)
• Physical Research Laboratory (PRL)
• Blow Plast Ergonomics Limited
• VIP Industries
• Sintex Industries Limited
• Thermax Limited
• TATA Motors Limited

No. of Employees :

125 Approximately

Bankers :

• Development Credit Bank – C. G. Road Branch, Ahmedabad, Gujarat, India
• Development Credit Bank Limited – Relief Road, Ahmedabad, Gujarat, India

Facilities :

SECURED LOANS	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Term loans :
From Gujarat Industrial Investment Corporation Limited (includes interest accrued and due)	48.473	54.533
From Scheduled banks (Secured by hypothecation of machinery, furniture and fixtures purchased out of loan funds.)	0.440	0.440
Working Capital loans :
From Banks (Secured against hypothecation of stock-in-trade and book-debts)	44.033	44.033
Total	92.946	99.006

Note:

1. Loan from GllC is secured by way of hypothecation of all movable plant and machineries and other immovable properties of the company situated at Changodar village, Tal. Sanand. Further, collateral securities has been provided by way of pledge of the shares of the company.

UNSECURED LOANS	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Deferred Sales Tax Liability	4.126	4.127
Amount due to a bank under Hire Purchase Scheme for purchase of motor car	0.455	0.619
Deposits:
From Shareholders and Others	0.338	0.817
Short Term advance From Directors	3.107	2.693
Total	8.026	8.256

Banking Relations :	-
Auditors :
Name :	Shah and Shah Associates Chartered Accountant
Address :	702, Aniket, Near Municipal Market, C G Road, Navrangpura, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26465433
Fax No.:	91-79-26406983
E-Mail :	ca@shahandshah.co.in
Memberships and Affiliations :	Indian Machine Tools Manufacturers Association (IMTMA) Engineering Export Promotion Council (EEPC) Gujarat Chamber of Commerce and Industry (GCCI)* Ahmedabad Management Association (AMA)

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs. 10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2015000	Equity Shares	Rs. 10/- each	Rs. 20.150 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		20.150	20.150	20.150
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.030	0.030	0.030
4] (Accumulated Losses)		(104.291)	(105.379)	(105.505)
NETWORTH		(84.111)	(85.199)	(85.325)
LOAN FUNDS
1] Secured Loans		92.946	99.006	108.336
2] Unsecured Loans		8.028	8.256	6.120
TOTAL BORROWING		100.974	107.262	114.456
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		16.863	22.063	29.131
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		25.878	28.223	31.076
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.017	0.014	0.014
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.416	15.029	23.839
	Sundry Debtors	9.722	11.342	10.611
	Cash & Bank Balances	0.935	0.690	0.946
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.580	0.763	1.491
Total Current Assets		27.653	27.824	36.887
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	30.625	29.949	28.694
	Other Current Liabilities	5.725	3.714	9.857
	Provisions	0.335	0.335	0.295
Total Current Liabilities		36.685	33.998	38.846
Net Current Assets		(9.032)	(6.174)	(1.959)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		16.863	22.063	29.131

PROFIT & LOSS ACCOUNT

Particulars	31.03.2011
Sales Turnover (Approximately)	70.000

Expected Sales (2011-2012): Rs. 100.000 millions

The above information has been parted by Mr. Umesh

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	47.205	62.083	65.057
		Other Income	1.345	0.523	2.597
		TOTAL (A)	48.550	62.606	67.654
Less	EXPENSES
		Decrease/(Increase) in Stocks	(1.784)	7.029	(0.442)
		Material Cost	29.662	31.086	43.430
		Operating and Other Expenses	16.572	19.031	20.631
		Prior period items	0.025	2.530	(0.099)
		TOTAL (B)	44.475	59.676	63.520
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4.075	2.930	4.134
Less	FINANCIAL EXPENSES (D)		0.585	0.412	0.493
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.490	2.518	3.641
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.403	2.232	2.049
	PROFIT BEFORE TAX (E-F) (G)		1.087	0.286	1.592
Less	TAX (I)		0.000	0.160	0.120
	PROFIT AFTER TAX (G-I) (J)		1.087	0.126	1.472
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(105.379)	(105.505)	(106.977)
	BALANCE CARRIED TO THE B/S		(104.292)	(105.379)	(105.505)
	Earnings Per Share (Rs.)		0.54	0.06	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.23	0.20	2.18
Net Profit Margin (PBT/Sales)	(%)	2.30	0.46	2.45
Return on Total Assets (PBT/Total Assets}	(%)	2.03	0.51	2.34
Return on Investment (ROI) (PBT/Networth)		(0.01)	(0.00)	(0.02)
Debt Equity Ratio (Total Liability/Networth)		(1.63)	(1.66)	(1.80)
Current Ratio (Current Asset/Current Liability)		0.75	0.82	0.95

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF THE OPERATIONS

The directors are pleased to state that the company has earned net income of Rs.48.551 millions for the year ending on 31.03.2010. However, the total income of the company has reduced by about 22.45% as compared to the previous year, the company has earned net profit of Rs.1.088 millions for the year ending on 31.03.2010. The main reason for the reduction in the income of the company can be attributable to various facts such as post effect of the global meltdown during Financial Year of Establishment 2009-10 resulted in non-lifting of capital goods by various customers as well as postponement of ongoing capital expenditure programme on a temporary period. However, due to untiring efforts of the directors, there is reduction in the cost of raw material consumed as well as sizeable reduction in the prior period items debited to profit and loss account, the company has earned net profit of Rs.1.088 millions as compared to Rs.0.126 million for the earlier financial year. The company has earned net cash accruals of Rs.3.489 millions for the year under review. However, considering the carry forward loss, the net loss carried to balance sheet works out to Rs.104.292 millions.

Bankers Charges Report as per Registry

Name of the company	Nugen Machineries Limited
Presented By	Shri Samir M Merchant, Director of M/s. Nugen Machineries Limited
1) Date and description of instrument creating the change	Deed of hypothecation dated 01.06.1999 executed by the company in favour of development credit bank limited (hereinafter referred to as the bank)
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 15.000 millions (Rupees Fifteen Millions Only) C.C (Stock and Book debts) Rs. 10.000 millions Inland L.C. Rs. 3.000 millions Foreign L.C. Rs. 2.000 millions Total Rs. 15.000 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	The whole of the moveable properties of the company including the moveable plant and machineries, machinery spares, tools and accessories, furniture and fixtures, stock in trade, finished goods, goods in process, raw materials, book debts, and other moveable, both present and future whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the Continuance of the security of these presents he brought into or upon or to be stored or to be in or about all the company’s Factories, premises arid godowns or where ever else the same may be or be held by any party to the order of disposition of the company or in the course of transit or on high seas or on order, or delivery, howsoever and wheresoever in the possession of the company and either by way of substitution of condition.
4) Gist of the terms and conditions and extent and operation of the charge.	The cash credit limit will carry interest at 18.5% p.a + interest tax
5) Name and Address and description of the person entitled to the charge.	Development Credit Bank Limited – Relief Road, Ahmedabad
6) Date and brief description of instrument modifying the charge	Supplemental deed of hypothecation (I) additional limit of Rs. 5.000 millions as per supplemental deed dated 24.07.1999. limit increase from Rs. 15.000 millions to Rs 20.000 millions
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.	Bank has increase the limit by Rs. 5.000 millions as per the supplemental deed of hypothecation dated 24.07.1999. Now as per the supplemental deed intal limit is Rs. 20.000 millions w.e.f 24.07.1999.

FIXED ASSETS:

• Land
• Building
• Plant and machinery
• Office equipments
• Furniture and fixtures
• Computer
• Vehicle

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	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	--
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	Yes
12) Profitability for last three years	--
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	--
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

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.53.36
UK Pound	1	Rs.82.51
Euro	1	Rs.68.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		15

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	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

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.