MIRA INFORM REPORT

Report Date :

13.07.2011

IDENTIFICATION DETAILS

Name :	GUPTA MACHINE TOOLS LIMITED
Registered Office :	122 Avenue South, Santoshpur Flat No. B Ground Floor, Kolkata – 700 075, West Bengal
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	28.09.1954
Com. Reg. No.:	21-021880
Capital Investment / Paid-up Capital :	Rs. 50.000 millions
CIN No.: [Company Identification No.]	U34300WB1954PLC021880
TAN No.: [Tax Deduction & Collection Account No.]	RTKP03265D RTKP02223E CALG00596B
PAN No.: [Permanent Account No.]	AABCG0676Q
Legal Form :	A Closely Held Public limited liability company.
Line of Business :	Manufacturer, Exporter, Importer and Trader of Electronic Stampings.
No. of Employees :	700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 1800000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual 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

LOCATIONS

Registered Office :	122 Avenue South, Santoshpur Flat No. B Ground Floor, Kolkata – 700 075, West Bengal, India
Fax No.:	91-129-2233628
E-Mail	bharatbhushan_gupta@rediffmail.com
Head Office :	Plot No. 106, Sector – 24, Faridabad – 121 005, Haryana, India.
Tel. No.:	91-129-2233784 / 4103783/4103784/4021354, 4021355, 4021579, 4021631
Fax No.:	91-129-2233628/41608022
E-Mail :	preti@vsnl.com precisionstampings@airtelbroadband.in preti@del2.vsnl.net.in precisionstampings@touchtelindia.net
	http://www.precision-stampings.com
Area :	5500 sq. mtrs.
Location :	Owned
Branch Office :	W-2, Greater Kailash-II , New Delhi-110048, India
Tel. No.:	91-11-29210901, 29214856
Fax No.:	91-11-29214861
PRECISION STAMPINGS UNIT II:	71, Sector-25, Faridabad-121005 , Haryana, India
Tel. No.:	91-129-5061065, 5060216
PRECISION STAMPINGS UNIT III:	Plot No. 1, Gat No. 907/2, Sanaswadi, Shirpur, Pune, Maharashtra, India
Tel. No.:	91-2137-252139, 252151
GOA PRECISION STAMPINGS PRIVATE LIMITED:	Plot No. 7, Kurti Haveli, Opp. Kurti Chemicals and Ponda , Goa-403401
Tel. No.:	91-832-2314996, 2314997

DIRECTORS

AS ON 29.09.2010

Name :	Mr. Mohan Gupta
Designation :	Managing Director and Chairman
Address :	122 Avenue South, Santoshpur Flat No. B Ground Floor, Kolkata – 700 075, West Bengal, India
Date of Birth/Age :	26.08.1952
Qualification :	Graduate
Date of Appointment :	01.07.1981
DIN No.:	00593026
Name :	Mr. Harsh Gupta
Designation :	Director - Operations
Address :	W-2, Greater Kailash – II, New Delhi – 110 048, India
Date of Birth/Age :	01.01.1976
Qualification :	Graduate
Date of Appointment :	01.07.1999
DIN No.:	00405675
Name :	Smt. Sangita Gupta
Designation :	Director
Address :	W-2, Greater Kailash – II, New Delhi – 110 048, India
Date of Birth/Age :	09.03.1956
Date of Appointment :	21.06.1991
DIN No.:	00596747
Name :	Sri Madan Lal Bhagat
Designation :	Secretary and Director
Address :	P 24 B Cit Road, Scheme VI, Kolkata – 700 054, West Bengal, India
Date of Birth/Age :	07.03.1943
Date of Appointment :	30.09.1996
DIN No.:	00603910

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2010

Names of Shareholders	No. of Shares
Mohan Gupta	87055
Harsh Gupta	53400
Sangita Gupta	49950
Aditi Gupta	200
Mohan Gupta HUF	40220
Anupam Mercantile Limited – New Delhi	12810
Atignas Traders Private Limited - New Delhi	10860
Pale Holdings Limited - New Delhi	12700
Adhara Credit Private Limited - New Delhi	3500
Bhagat M.L	2
Bhagat Champa Devi	1
Bhagat Sumit	1
Bhagat Amit	1
Rashi Gupta	21500
Harsh Gupta HUF	4000
Gupta Yashovardhan	1900
Gupta Shauryavardhan	1900
Total	300000

AS ON 29.09.2010

Names of Preference Shareholders	No. of Preferences Shares
Shashi Carriers Private Limited – New Delhi	160000
Anupam Mercantile Limited – New Delhi	21000
Pale Holding Limited – New Delhi	16500
Adhara Credit Private Limited – New Delhi	2500
Total	200000

AS ON 29.09.2010

Category	Percentage
Bodies corporate	13.29
Directors or relatives of Directors	86.71
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter, Importer and Trader of Electrical Stampings.

Products :

Item Code No. (ITC Code)	Product Description
8312	Electrical stampings and laminations
8503	Die cast rotor/stator cleated/ riveted stator/ rotor and stacks

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Electrical Stampings.	MT	8500	2100	14218.739
Lamination for Motors	Nos.	--	--	789349
Transformer	Rs.	--	--	7806147
Jigs, Fixtures,	Nos.	--	--	1
Gauges	Rs.	63.600	63.000	--
Tools And Moulds	Nos.	--	--	(14)

Notes:

* production and sales shown including job work from customer’s materials in finished and semi-finished condition total production and sales quantity 867.748 M.T (Previous year 882.474 M.T)

* inter unit job work and sales has not been included in production and sales figure.

GENERAL INFORMATION

No. of Employees :

700 (Approximately)

Bankers :

· Canara Bank, PCB-II, 2^nd Floor, World Trade Tower, Barakhamba Lane, New Delhi-110001, Delhi, India

· ICICI Bank Limited, ICICI Bank Towers, Bandra Kurla Complex, Mumbai-400051, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Banks	125.417	102.622
Term Loan:
Canara Bank, New Delhi (Repayable with in1Year Rs. 20.700 millions, previous year paid Rs. 23.155 millions)	44.005	67.160
ICICI Home Finance	0.000	3.551
(Repayable with in 1 year Rs. Nil, previous year Rs. 3.551millions)
Total	169.422	173.333
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Fixed Deposits From Shareholders	13.840	10.895
Fixed Deposits from the relatives of Directors	0.700	0.700
From Companies	26.595	21.950
From Directors	0.000	2.013
From Others	0.390	0.390
Total	41.525	35.948

Notes:

1. Loan from Canara Bank amounting to Rs. 125.417 millions secured by hypothecation of stocks of Raw Material, Finished Goods, Work in Process and Book Debts of all the three Units and collateral security by way of first charge of Land and Building, Plant and Machinery of both the units at Faridabad and Plant and Machinery at Pune and Further secured by way of personal Guarantee of there Director’s and one Shareholder of the company.

2. Term loan from Canara Bank secured by way of first charge on Plant and Machinery financed by the Bank and collateral as above.

Banking Relations :	--
Auditors :
Name :	Pankaj Dave Chartered Accountants
Address :	D-26, Sector – 3, Noida – 201 301, Uttar Pradesh, India
Pan No :	AACFB7576N

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.100/- each	Rs. 30.000 Millions
200000	5% Redeemable Cumulative Preference Shares	Rs.100/- each	Rs. 20.000 millions
	Total		Rs. 50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.100/- each	Rs. 30.000 Millions
200000	5% Redeemable Cumulative Preference Shares	Rs.100/- each	Rs. 20.000 millions
	Total		Rs. 50.000 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		50.000	50.000	50.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		411.316	360.307	301.603
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		461.316	410.307	351.603
LOAN FUNDS
1] Secured Loans		169.422	173.333	202.322
2] Unsecured Loans		41.525	35.948	33.098
TOTAL BORROWING		210.947	209.281	235.420
DEFERRED TAX LIABILITIES		25.109	24.072	21.458
TOTAL		697.372	643.660	608.481
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		412.857	423.230	422.138
Capital work-in-progress		0.000	0.000	0.701
INVESTMENT		17.649	10.446	7.376
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	203.074	123.010	152.789
	Sundry Debtors	231.358	148.723	167.013
	Cash & Bank Balances	16.846	11.960	30.744
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	45.413	35.591	42.645
Total Current Assets		496.691	319.284	393.191
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	190.139	77.248	185.117
	Other Current Liabilities	16.565	6.724	8.209
	Provisions	23.121	25.328	21.599
Total Current Liabilities		229.825	109.300	214.925
Net Current Assets		266.866	209.984	178.266
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		697.372	643.660	608.481

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1631.197	1680.787	1668.521
		Job Work Receipts	9.466	10.598	9.263
		Income from Tool Development	2.753	2.566	6.599
		Other Income	6.790	4.316	2.809
		TOTAL (A)	1650.206	1698.267	1687.192
Less	EXPENSES
		Cost of Raw materials consumed/sold	1079.736	1119.628	992.946
		Manufacturing Expenses	76.718	68.001	86.978
		Payment to and provisions for employees	39.856	34.324	36.282
		Selling expenses	48.699	40.445	40.786
		Other expenses	15.351	14.042	15.460
		Duties and taxes	188.136	244.644	291.078
		Provision for excise duty on closing stock	1.251	0.945	2.436
		Expenses related to earlier years	0.052	0.014	0.012
		Increase/decrease in stock	12.755	(20.730)	(7.388)
		TOTAL (B)	1462.554	1501.313	1458.590
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		187.652	196.954	228.602
Less	FINANCIAL EXPENSES (D)		28.693	45.729	49.371
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		158.959	151.225	179.231
Less/ Add	DEPRECIATION/ AMORTISATION (F)		24.972	24.608	19.302
	PROFIT BEFORE TAX (E-F) (G)		133.987	126.617	159.929
Less	TAX (I)		64.321	43.929	55.750
	PROFIT AFTER TAX (G-I) (J)		69.666	82.688	104.179
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5.307	6.603	5.043
Less	APPROPRIATIONS
		Transfer to General Reserve	50.000	60.000	83.900
		Proposed Equity Dividend	15.000	19.500	15.000
		Proposed Preference Dividend	1.000	1.000	1.000
		Tax on Dividend	2.657	3.484	2.719
	BALANCE CARRIED TO THE B/S		6.316	5.307	6.603
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	41.017	122.616	25.537
	TOTAL EARNINGS		41.017	122.616	25.537
	IMPORTS
		Raw Materials	273.121	320.941	300.815
	TOTAL IMPORTS		273.121	320.941	300.815
	Earnings Per Share (Rs.)		278.89	272.29	371.10

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.22	4.87	6.17
Net Profit Margin (PBT/Sales)	(%)	8.21	7.53	9.58
Return on Total Assets (PBT/Total Assets}	(%)	14.73	17.05	19.62
Return on Investment (ROI) (PBT/Networth)		0.29	0.31	0.45
Debt Equity Ratio (Total Liability/Networth)		1.01	0.78	1.28
Current Ratio (Current Asset/Current Liability)		2.16	2.92	1.83

LOCAL AGENCY FURTHER INFORMATION

REVIEW AND FUTURE PROSPECTS:

During the year the total Turnover of the company in value term decreased marginally by 3.00% from Rs. 1691.385 millions to Rs. 1640.663 millions, which includes job work receipts Rs. 9.466 millions (867.748 M Ton). This decrease was mainly due to reduction in CENVAT and reduction of sale prices corresponding to reduction of steel prices and the other reason was due to stiff falls in Export Turnover which declined by 74.81% from Rs. 121.866 millions to Rs. 30.700 millions due to recession in Europe. However domestic turnover increased marginally by 2.58% in value wise. Profit during the year increased from Rs. 125.615 millions to Rs. 133.988 millions showing a jump of 5.82% compared to last year’s profit Quantity wise total turnover increased by 13.98% from 12490.985 M Ton to 14237.509 M Ton and Production increased from 12442.789 M Ton to 14218.739 M Ton.

The outlook for the current year appears quite good due to improved economic conditions in India which also reflects in the last year domestic turnover and they expect this will continue in the coming years. In India recovery from the economic recession was much faster compare to Europeans Countries Foreign Customers are yet to come out the recession as their economy still feel the heat of the economic slowdown and they are very conservative to issue fresh new orders. A large number of new foreign customers had already approved their samples and they expect that these approvals will shortly be converted in confirm orders. Because of the increase in prices of raw material, margins are under pressure. The company have successfully added some prestigious domestic customers to it’s list.

FORM 8

Corporate identity number of the company	U34300WB1954PLC021880
Name of the company	GUPTA MACHINE TOOLS LIMITED
Address of the registered office or of the principal place of business in India of the company	122 Avenue South, Santoshpur Flat No. B Ground Floor, Kolkata – 700 075, West Bengal, India
This form is for	Creation of charge
Type of charge	Immovable property
Particular of charge holder	Canara Bank - PCB-II, 2nd Floor, World Trade Tower, Barakhamba Lane, New Delhi – 110001, Delhi, India e-mail id: smdelhi1942@canbank.co.in
Nature of instrument creating charge	Letter Evidencing Deposit Of Title Deeds (No.2) and Common Hypothecation Agreement
Date of instrument Creating the charge	03.05.2010
Amount secured by the charge	Rs.568.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Rate Of Interest As May Be Specified By The Bank From Time To Time. Terms of repayment As per agreement Margin As per agreement Extent and operation of the charge 100% Others The Above Is To Secure OCC (Stocks/BD) Of Rs.190.000 millions, PC/FDB/FBE Of Rs. 40.000 millions, ILC/FLC (DA/DP) BG Of Rs.210.000 millions, Term Loan Of Rs.103.500 millions and Fresh Term Loan Of Rs.25.000 millions, Aggregating To Rs.568.500 millions.
Particulars of the property charged	The whole of the borrower’s present and future stocks of raw materials, goods-in process and all finished and manufactured goods and articles together with all stores spares and other similar moveable property lying at borrower’s present and future book debts, outstanding monies, receivables, claims, bills.
Particulars of the present modification	Extent Of Operation Of Charge Over stocks and book debts, outstanding monies, receivables, claims, bills Stands Enhanced From Rs.543.500 millions To Rs.568.500 millions I.E. OCC (Stocks/BD) Of Rs.190.000 millions, PC/FDB/FBE Of Rs.40.000 millions, ILC/FLC (DA/DP) BG Of Rs.210.000 millions, Term Loan Of Rs.103.500 millions and Fresh Term Of Rs.25.000 millions. Other T and C Remain The Same

FIXED ASSETS

• Land
• Building
• Land And Building
• Plant and Machinery
• Furniture and fixture
• Office Equipment
• Electrical Installation
• Measuring, Handing and Testing Equipment
• Motor Vehicles
• Truck Tempo

AS PER WEB SITE DETAILS:

PROFILE

Precision Stampings was set up in 1971 at Faridabad, the satellite industrial township, 20 km from the National capital New Delhi. With an annual turnover of Rs. 350 million and a utilised capacity of 4000 tones, the unit turns over a large variety of stampings and laminations for a host of rotating machines. A sophisticated tool room that takes care of all captive tool requirements in the manufacture of stampings and laminations is a major strength of the unit. Manned by over 200 skilled workforce and engineers, the company boasts of a high degree of professionalism in manufacturing and marketing.

The parent company Subject was a pioneering venture in early 60s with its first unit Precision Tools and Instruments, Calcutta manufacturing gauges, gear cutting tools, steering worms etc. The unit was essentially a sophisticated tool room and machining centre. Precision Stampings came up next. 

Subject also provided Technical knowhow to a Malaysian company for the manufacture of gauges, tools, stampings and laminations.

In the year 1994, The Company set up a new unit called "Precision Lamps" for manufacture of H3 Halogen lamps. This is a 100% E.O.U. with foreign collaboration.

In the year 2000, the company set up another unit called "Precision Stampings Unit No. II" located at Plot No. 71, Sector -25, Faridabad for manufacture of Electrical Stampings and Laminations. This Plant has been set up on the most modern Automatic lines with number of high speed presses that will double the capacity of our existing unit.

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.44.68
UK Pound	1	Rs.70.87
Euro	1	Rs.62.25

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
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	5
--RESERVES	1~10	6
--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		53

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
-	NB	New Business	-

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.