MIRA INFORM REPORT

Report Date :

18.11.2011

IDENTIFICATION DETAILS

Name :	THE SMALL TOOLS MANUFACTURING COMPANY OF INDIA LIMITED
Registered Office :	23, A. M. Ghosh Road, Budge Budge, Kolkata – 743319, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.04.1948
Com. Reg. No.:	21-016637
Capital Investment / Paid-up Capital :	Rs.17.837 Millions
CIN No.: [Company Identification No.]	U29119WB1948PLC016637
TAN No.: [Tax Deduction & Collection Account No.]	CALT00203A
PAN No.: [Permanent Account No.]	AABCT0132E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Metal Cutting Tools.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (16)

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 old and established company having moderate track. There appears huge 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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. Anik
Designation :	Director
Contact No.:	91-33-22365072
Date :	14.11.2011

LOCATIONS

Registered Office/ Factory :	23, A. M. Ghosh Road, Budge Budge, Kolkata – 743319, West Bengal, India
Tel. No.:	91-33-22365072
Fax No.:	91-33-22365890
E-Mail :	stmcal@gmail.com
Location :	Owned

DIRECTORS

As on 29.09.2011

Name :

Mr. Anik Palchoudhuri

Designation :

Director

Address :

64, Lake Place, Kolkata – 700029, West Bengal, India

Date of Birth/Age :

16.10.1934

Date of Appointment :

23.04.1959

DIN No.:

00361548

Other Directorship :

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
U01132WB1958PTC024072	Washabarie Tea Company Private Limited	Director	18/04/1959	18/04/1959	-	Active	NO
U29119WB1948PLC016637	The Small Tools Manufacturing Company of India Limited	Director	23/04/1959	23/04/1959	-	Active	NO
U51909WB2009PTC137173	Indraloke Tradelinks Private Limited	Director	24/07/2009	24/07/2009	-	Active	NO
U51909WB2010PTC141244	Anik Vanijya Private Limited	Director	22/01/2010	22/01/2010	14/10/2011	Active	NO

Name :

Mr. Subodh Kumar Singha

Designation :

Director

Address :

Barui Para, Hooghly – 712306, West Bengal, India

Date of Birth/Age :

11.12.1967

Date of Appointment :

31.07.2006

DIN No.:

00962612

Name :

Mr. Arjun Singha

Designation :

Director

Address :

Parlhim Baruipara Po Baruipara District Hooghly – 712306, West Bengal, India

Date of Birth/Age :

19.07.1960

Date of Appointment :

01.09.2008

DIN No.:

02485668

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Ghosh Chandra Romes	75
Palchoudhuri Chitra	62192
United Bank of India, India	100
Amiyo Palchoudhuri	870
Ray Prosad Deba	55
Palchoudhuri Ranodhir	1950
Forbes Gokak Limited, India	1430
Sahgal Suman	100
Sahgal Chitvan	19700
Suraiya Mukesh	300
Wiseman James Arthur	21000
Palchoudhuri Chitra	1146
Palchoudhuri Ila	832

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2011

Category	Percentage
Bodies corporate	0.83
Directors or relatives of Directors	72.03
Other top fifty shareholders	27.06
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Metal Cutting Tools.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Taps	8207.00
Chasers	8207.00
Thread Rolling Dies	8207.00

Exports :

Products :

Metal Cutting Tools

Countries :

U. K

Terms :

Selling :

L/C/ Cash/ Credit

Purchasing :

Cash/ Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity
Taps	pcs	580000
Reamers	pcs	16000
Conventry Dies	sets	53000
Tangential Chasers	sets	27000
Thread Rolling Dies	sets	3125
Milling Cutters	pcs	7800
Tool Bits	doz	2040
Screw Plug and Ring Gauges	sets	500
Plain Plug and Ring Gauges	sets	500
Snap Gauges	sets	250
Miscellaneous Gauges	pcs	100
Form Tools of Various sizes	pcs	5000
End Mills	pcs	200000
Slitting Cutters	pcs	200000
Micro Drills	pcs	300000
Taps and Dies	pcs	370000
Twist Drills	pcs	240000
Tea Machinery	pcs	18
Tea Machinery Spares	pcs	36000

Particulars	Unit	Installed Capacity
Taps	pcs	580000
Reamers	pcs	16000
Conventry Dies	sets	53000
Tangential Chasers	sets	27000
Thread Rolling Dies	sets	3125
Milling Cutters	pcs	7800
Tool Bits	doz	2040
End Mills	pcs	200000
Slitting Cutters	pcs	50000
Micro Drills	pcs	300000
Taps and Dies	pcs	270000
Twist Drills	pcs	240000
Tea Machinery	pcs	18
Tea Machinery Spares	pcs	3600

Particulars	Unit	Actual Production
Taps	pcs	1916726
Reamers	pcs	Nil
Conventry Dies	sets	1064352
Tangential Chasers	sets	369384
Thread Rolling Dies	sets	134553
Milling Cutters	pcs	Nil
Tool Bits	doz	Nil
Miscellaneous Tools	pcs	Nil
End Mills	pcs	Nil
Slitting Cutters	pcs	Nil
Micro Drills	pcs	Nil
Taps and Dies	pcs	Nil
Twist Drills	pcs	Nil
Tea Machinery Spares	pcs	Nil

GENERAL INFORMATION

Customers :

· OEM’s

· Industries

No. of Employees :

50 (Approximately)

Bankers :

· IndusInd Bank Limited, Burra Bazar, Branch

· Allahabad Bank

· The Federal Bank Limited, 1, R. N. Mukherjee Road, Kolkata – 700001, West Bengal, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on31.03.2010 (Rs. in Millions)
Loans and Advance Government of West Bengal	10.097	10.097
Total	10.097	10.097
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Others Loans and Advances From Parties other than Banks	45.941	43.056
	1.547	1.547
Total	47.488	44.603

Banking Relations :	--
Auditors :
Name :	Basu Mallick and Mukherjee Chartered Accountants
Address :	Manna Para, Manirapur, Barrackpore, District Parganas (North) – 24, Kolkata – 700120, West Bengal, India
PAN.:	AWXPS4752N

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions
6500	6.5% Cumulative Participating Redeemable Preference Shares	Rs.100/- each	Rs.0.650 Million
	Total		Rs.20.650 Millions

Issued & Subscribed Capital :

No. of Shares	Type	Value	Amount
172290	Equity Shares	Rs.100/- each	Rs.17.229 Millions
6070	6.5% Cumulative Participating Redeemable Preference Shares	Rs.100/- each	Rs.0.607 Million
	Total		Rs.17.836 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
172290	Equity Shares	Rs.100/- each	Rs.0.607 Million
6070	6.5% Cumulative Participating Redeemable Preference Shares	Rs.100/- each	Rs.17.229 Millions
	Add : Forfeited Shares		Rs.0.001 Million
	Total		Rs.17.837 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		17.837	17.837	17.837
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(89.057)	(90.147)	(94.609)
NETWORTH		(71.220)	(72.310)	(76.772)
LOAN FUNDS
1] Secured Loans		10.097	10.097	10.097
2] Unsecured Loans		47.488	44.603	44.253
TOTAL BORROWING		57.585	54.700	54.350
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		(13.635)	(17.610)	(22.422)
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.461	6.584	7.606
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	15.104	12.551	8.784
	Sundry Debtors	6.976	6.625	11.186
	Cash & Bank Balances	0.138	0.759	0.584
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.393	1.200	1.896
Total Current Assets		23.611	21.135	22.775
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.291	4.730	3.387
	Other Current Liabilities	37.631	38.785	47.600
	Provisions	3.950	3.980	3.980
Total Current Liabilities		44.872	47.495	54.967
Net Current Assets		(21.261)	(26.360)	(32.192)
MISCELLANEOUS EXPENSES		2.165	2.164	2.164
TOTAL		(13.635)	(17.610)	(22.422)

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	15.053	11.836	22.710
		Other Income	1.103	0.739	2.393
		TOTAL (A)	16.156	12.575	25.103
Less	EXPENSES
		Increase/ Decrease in stock	(2.180)	(2.723)	(1.715)
		Cost of Goods Sold	2.150	1.051	6.403
		Stores and Spares Parts Consumed	0.780	0.728	0.974
		Electricity Charges	1.085	0.952	1.187
		Auditor’s Remuneration	0.009	0.009	0.009
		Salaries, Wages and Bonus	2.063	1.697	1.925
		Insurance	0.007	0.010	0.010
		Other Expenditure	10.868	10.429	11.457
		TOTAL (B)	14.782	12.153	20.250
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.374	0.422	4.853
Less	FINANCIAL EXPENSES (D)		0.086	0.102	0.025
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.288	0.320	4.828
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.197	0.222	0.258
	PROFIT BEFORE TAX (E-F) (G)		1.091	0.098	4.570
Less	TAX (H)		0.000	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		1.091	0.098	4.570
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	6.390	3.108	14.370
	TOTAL EARNINGS		6.390	3.108	14.370
	IMPORTS
		Raw Materials	4.203	0.000	0.000
		Stores & Spares	0.708	0.728	0.000
	TOTAL IMPORTS		4.911	0.728	0.000
	Earnings Per Share (Rs.)		6.12	0.54	25.62

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.75	0.78	18.20
Net Profit Margin (PBT/Sales)	(%)	7.25	0.83	20.12
Return on Total Assets (PBT/Total Assets}	(%)	3.75	0.35	15.04
Return on Investment (ROI) (PBT/Networth)		0.02	0.00	0.05
Debt Equity Ratio (Total Liability/Networth)		1.44	1.41	1.42
Current Ratio (Current Asset/Current Liability)		0.52	0.44	0.41

LOCAL AGENCY FURTHER INFORMATION

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 two years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	Yes
15) Capital in the business	--
16) Details of sister concerns	--
17) Major suppliers	No
18) Major customers	--
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
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	--

FORM 8

This form is for	Modification of charge
Charge identification number of the modified	80014985
Corporate identity number of the company	U99999WB1948PTC016637
Name of the company	THE SMALL TOOLS MANUFACTURING COMPANY OF INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	23, A. M. Ghosh Road, Budge Budge, Kolkata – 743319, West Bengal, India
Type of charge	Immovable property
Particular of charge holder	The Federal Bank Limited, 1, R N Mukherjee Road, Kolkata – 700001,West Bengal, India Email Id : calc@federalbank.co.in
Nature of description of the instrument creating or modifying the charge	1) Agreement of Guarantee 2) Deposited The Title Deeds
Date of instrument Creating the charge	16.10.2006
Amount secured by the charge	Rs.160.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest The Borrower shall pay interest as per Bank's/RBI Guidelines from time to time Terms of Repayment As per bank's rule Margin N.A. Extent and Operation of the charge The borrower deposited the title deeds relating to their property situated at Premises No.33/1A and 33/1B, Upendra Chandra Banerjee Road Kolkata - 700 054 admeasuring 5118.17 Sq.Mtrs. Equivalent to 76.50 Cottahs and admeasuri 8 Kottahs 15 Chittaks 31 Sq. ft. be the same a little more or less with the intention to create mortgage by way of deposit of title deeds as envisaged under section 58(f) of the transfer of property act over the said property by way of continuing collateral security. Others Nil
Short particulars of the property charged	All that piece and parcel of land continuing an area of 5118.17 Sq.Mtrs. Equivalent to 76.50 Cottahs situated at 33/1A, Upendra Chandra Banerjee Road, Calcutta -700 054 and all that piece and parcel of vacant land admeasuring 8 Kottahs 15 Chittaks 31 Sq.ft. situate and forming the exempted portion of Premises No.33/1B, Upendra Banerjee Road P.S.:Beliaghata Sub -Registration Office Sealdah Div. 3 Sub Division 12 Holding No.49A, Mouza-Narkeldanga, Dihi Panchannagram,Touzi - 2833 in the District:24 Pgs
Particulars of the present modification	By this modification at the request of the borrower the bank enhanced the overall from Rs.120.000 Millions to Rs.160.000 Millions Others terms and conditions save as modified by these presents remain in full force

FIXED ASSETS

· Factory Land and Building (Freeholds and Leaseholds)

· Plant and Machinery

· Tools and Accessories

· Furniture and Fixtures

· Office Machinery and Appliances

· Electric and Gas Installation

· Inspection and Testing Appliance

· Motor Car

· Tubewell

· Data Processing Machine

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.50.72
UK Pound	1	Rs.79.88
Euro	1	Rs.68.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	2
--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		16

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.