MIRA INFORM REPORT

Report Date :

22.11.2011

IDENTIFICATION DETAILS

Name :	SMT MACHINES INDIA LIMITED
Formerly Known As :	AMAN MULTI METALS PRIVATE LIMITED
Registered Office :	Motia Khanmandi Gobindgarh, District Fatehgarh Sahib - 147 301, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.06.1992
Com. Reg. No.:	16-12340
Capital Investment / Paid-up Capital :	Rs.10.316 Millions
CIN No.: [Company Identification No.]	U29219PB1992PLC012340
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Hot Steel Rolling Mill Plants, Hot Rolling Mill, Hot Rolling Mill Machines, etc.
No. of Employees :	250 (Approximately) [In Office – 50 and In Factory – 200]

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 594000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established 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 normal for 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 – 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. Raman Mittal
Designation :	Director
Contact No.:	91-9357755555
Date :	18.11.2011

LOCATIONS

Registered Office :	Motia Khanmandi Gobindgarh, District Fatehgarh Sahib – 147 301, Punjab,India
Tel. No.:	91-1765-557742 / 256331
Mobile No.:	91-9357755555 (Mr. Raman Mittal)
Fax No.:	91-1765-555199
E-Mail :	vickyvishal@rediffmail.com info@smtmachinesindia.org
Website :	www.smtmachinesindia.org
Location :	Owned
Factory :	P.O. Box No.71, G.T. Road, Near Focal Point, Mandi, Gobindgarh – 147 301, Punjab, India
Tel. No.:	91-1765-256337 / 257742
Fax No.:	91-1765-255199
Area :	2 Acres
Location :	Owned

DIRECTORS

As on 16.09.2011

Name :

Mr. Raman Mittal

Designation :

Whole – time Director

Address :

Ward No.5, Shastri Nagar, Saint Farid Public School Road, Mandi, Gobindgarh, Fatehgarh Sahib- 147301, Punjab, India

Date of Appointment :

27.06.2006

Qualification :

MBA (Marketing)

DIN No.:

00639724

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
U29219PB1992PLC012340	SMT Machines India Limited	Whole-time director	27/06/2006	27/06/2006	-	Active	NO
U45209PB2010PTC033888	SMT Infrastructure Private Limited	Director	6/05/2010	6/05/2010	-	Active	NO
U27105PB2003PTC025897	Hari Ispat Private Limited	Additional director	2/09/2011	2/09/2011	-	Active	NO

Name :

Ms. Laxmi Mittal

Designation :

Director

Address :

Ward No.5, Shastri Nagar, Saint Farid Public School Road, Mandi, Gobindgarh, Fatehgarh Sahib- 147301, Punjab, India

Qualification :

SSC

Date of Appointment :

28.11.1994

DIN No.:

01845975

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
U29219PB1992PLC012340	Smt Machines India Limited	Director	28/11/1994	28/11/1994	-	Active	NO
U27105PB2003PTC025897	Hari Ispat Private Limited	Additional director	16/08/2011	16/08/2011	-	Active	NO

Name :

Mr. Surinder Kumar Mittal

Designation :

Managing Director

Address :

Ward No.5, Shastri Nagar, Saint Farid Public School Road, Mandi, Gobindgarh, Fatehgarh Sahib- 147301, Punjab, India

Qualification :

SSC

Date of Appointment :

27.06.2006

DIN No.:

01846096

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
U29199PB1994PTC015036	Smt Machines Private Limited	Director	31/05/2005	31/05/2005	-	Active	NO
U29219PB1992PLC012340	Smt Machines India Limited	Managing director	27/06/2006	27/06/2006	-	Active	NO
U45209PB2010PTC033888	SMT Infrastructure Private Limited	Director	6/05/2010	6/05/2010	-	Active	NO
U27105PB2003PTC025897	Hari Ispat Private Limited	Additional director	16/08/2011	16/08/2011	-	Active	NO
U27104HP2002PTC025436	Aar Aar Castings Private Limited	Additional director	21/09/2011	21/09/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 16.09.2011

Names of Shareholders	No. of Shares
Surinder Kumar Mittal	453475
Jai Prakash Goyal	1000
Surinder Kumar Mittal (HUF)	4000
Anita Goyal	1000
Luxmi Goyal	93600
Aman Mittal (Minor)	9225
Raman Mittal	1600
Eshani Mittal	2900
SMT Machines Private Limited	464750
Total	1031550

Equity Share Break up (Percentage of Total Equity)

As on 16.09.2011

Category	Percentage
Bodies corporate	45.05
Directors or relatives of Directors	54.95
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Hot Steel Rolling Mill Plants, Hot Rolling Mill, Hot Rolling Mill Machines, etc.

Products :

Item Code No. (ITC Code)	Product Description
8455.10	Complete Rolling Mill Plant
8455.10	Rolling Mill Parts
8483.00	Gear Box, Fly Wheel etc

Exports :

Products :

· Hot Steel Rolling

· Mill Plants

· Hot Rolling Mill

Countries :

· Oman

· Bangladesh

· Sri Lanka

· UK

Imports :

Products :

· Raw Material

· Machinery

Countries :

· Germany

· China

· Japan

Terms :

Selling :

L/C/ Cash/ Credit

Purchasing :

L/C/ Cash/ Credit

GENERAL INFORMATION

Suppliers :

· Goyal Steel

• Access Infotech Private Limited
• Advit Enterprises
• AVS Impex
• C L. Pattern Maker
• Eagle Scale Manufacturing Works
• East West Freight Carries Private Limited
• Entec Industries Furnances Private Limited
• Four Square Media Private Limited
• Crystal Electricals
• Data Sindia Company
• Gen Power

Customers :

Wholesalers

Retailers

End Users

OEM’s

· PRS Rolling Mills Private Limited

• Hari Om Ingots and Power Private Limited
• Modern Steel Limited
• G.G. Alloys and Metal
• PRS Rolling Mills Private Limited
• Khan Steel Limited
• R.P. Steel Industries
• D’dar Steel Complex Private Limited
• Boyton Industries Limited
• Apollo International
• Cicon Epoxy And Steel Cutting Plant LLC
• Bhuwalika Steel Industries
• Kalinga Metallic and Power Private Limited
• Samlo Koyenco Steel Company Limited
• Rana Mohindra Paper Mill Limited

· Wester Casting Limited

No. of Employees :

250 (Approximately) [In Office – 50 and In Factory – 200]

Bankers :

· Bank of Baroda, Sector – 17 B, Chandigarh - 160017, India

· Axis Bank Limited

· HDFC Bank Limited

· ICICI Bank Limited

· State Bank of India, Navi Mumbai, Maharashtra, India

· Punjab National Bank

· Union Bank of India, Kolkata, West Bengal, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Magma Leasing Limited, Ludhiana Loan Against car	0.041	0.086
HDFC Bank Limited, Ludhiana Loan Against car	4.394	0.620
Axis Bank Limited, Ludhiana Loan Against Property	40.224	0.000
ICICI Bank Limited, Ludhiana Loan against limit	0.733	1.062
Bank of Baroda Packing Credit Limit	15.047	5.030
Term Loan	11.992	14.991
Cash Credit Limit	50.232	48.428
Foreign Bill Purchase Limited (Secured by way of first charges on land building and other fixed assets of the company )	0.578	9.828
	123.241	80.045
Total
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Directors	1.127	8.579
From Shareholders	2.552	3.147
From Corporate Bodies	1.275	105.972
From Others	0.000	47.016
Total	4.954	164.714

Financial Institute :

· Reliance Capital Limited, “H” Block, 1^st Floor, Dhirubhai Ambani Knowledge City, Koparkhairne, Navi Mumbai – 400710, Maharashtra, India

· Magma Leasing Limited

Banking Relations :	--
Auditors :
Name :	Datta Singhla and Company Chartered Accountants
Address :	Battan Lal Road, Battan Lal Mill Complex, Chandigarh – 147301, India
PAN.:	AAAFD8577H

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1031550	Equity Shares	Rs.10/- each	Rs.10.316 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		10.316	10.316	10.316
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		138.193	131.727	103.648
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		148.509	142.043	113.964
LOAN FUNDS
1] Secured Loans		123.241	80.045	54.898
2] Unsecured Loans		4.954	164.714	61.852
TOTAL BORROWING		128.195	244.759	116.750
DEFERRED TAX LIABILITIES		1.748	1.418	1.237
TOTAL		278.452	388.220	231.951
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		157.032	165.078	114.267
Capital work-in-progress		14.580	10.954	11.653
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	50.067	68.022	42.454
	Sundry Debtors	98.684	120.704	61.946
	Cash & Bank Balances	80.600	101.886	10.209
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	40.538	78.180	91.199
Total Current Assets		269.889	368.792	205.808
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	33.818	61.541	33.006
	Other Current Liabilities	125.328	79.915	31.172
	Provisions	4.317	15.700	35.599
Total Current Liabilities		163.463	157.156	99.777
Net Current Assets		106.426	211.636	106.031
MISCELLANEOUS EXPENSES		0.414	0.552	0.000
TOTAL		278.452	388.220	231.951

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	420.710	367.734	350.277
		Other Income	9.105	39.250	22.196
		TOTAL (A)	429.815	406.984	372.473
Less	EXPENSES
		Increase/ Decrease in Stocks	7.059	(4.796)	(7.014)
		Material Consumed	356.080	319.408	251.646
		Manufacturing Expenses	9.252	9.010	9.662
		Excise Duty	0.577	1.429	0.753
		Salary and Other Benefits	12.506	8.591	7.292
		Administrative & Other Expenses	5.145	4.413	8.588
		Selling and Distribution Expenses	0.785	1.640	3.233
		Preliminary Expenses Written Off	0.138	0.138	0.000
		TOTAL (B)	391.542	339.833	274.160
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		38.273	67.151	98.313
Less	FINANCIAL EXPENSES (D)		17.559	15.129	7.989
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.714	52.022	90.324
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.224	7.180	4.544
	PROFIT BEFORE TAX (E-F) (G)		11.490	44.842	85.780
Less	TAX (H)		4.648	15.881	35.805
	PROFIT AFTER TAX (G-H) (I)		6.842	28.961	49.975
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		128.938	100.859	51.437
	Add: Provision for earlier year written back		0.000	0.010	0.012
	Previous year adjustment		(0.376)	(0.892)	(0.565)
	BALANCE CARRIED TO THE B/S		135.404	128.938	100.859
	IMPORTS
		Raw Materials	0.000	0.000	0.673
		Machinery	0.000	0.000	0.718
	TOTAL IMPORTS		0.000	0.000	0.000
	Earnings Per Share (Rs.)		6.95	28.25	48.45

Expected Sales (2011-12) : Rs.500.000 Millions

The above information has been parted by Mr. Raman Mittal.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.59	7.12	13.42
Net Profit Margin (PBT/Sales)	(%)	2.73	12.19	24.49
Return on Total Assets (PBT/Total Assets}	(%)	2.51	8.40	26.80
Return on Investment (ROI) (PBT/Networth)		0.07	0.32	0.75
Debt Equity Ratio (Total Liability/Networth)		1.96	2.83	1.90
Current Ratio (Current Asset/Current Liability)		1.65	2.35	2.06

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS

During the year, the Company earned a Net Profit of Rs.6.842 Millions after tax which is on the lower side as compared to the profit of Rs.28.961 Millions in the previous year. This is because of the increase in the expenditure of the Company. The management is trying to reduce the expenditure and reap better results in the times to come.

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	No
13) Reasons for variation <> 20%	No
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	--
23) Banking Details	Yes
24) Banking facility details	No
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

Corporate identity number of the company	U29219PB1992PLC012340
Name of the company	SMT MACHINES INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	Motia Khanmandi Gobindgarh, District Fatehgarh, Sahib - 147 301, Punjab, India E-Mail: vickyvishal@rediffmail.com
This form is for	Creation of charge
Type of charge	Immovable Property Corporate Guarantee
Particular of charge holder	Bank of Baroda, Sector – 17 B, Chandigarh - 160017, India Email Id : sectob@bankofbaroda.com
Nature of description of the instrument creating or modifying the charge	Corporate Guarantee Agreement
Date of instrument Creating the charge	21.09.2011
Amount secured by the charge	Rs.360.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per Agreement Terms of Repayment As per Agreement Margin As per Agreement Extent and Operation of the charge: As per Agreement
Short particulars of the property charged	Corporate Guarantee for the above said amount to secure the limits sanctioned to Aar Aar Castings Private Limited Industrial Godown and building of SMT Machines India Limited At 105, Sector-18, Block A, GT RD Gobindgarh admsg 7275 sq ft Industrial Godown and Building Of SMT Machines India Ltd At 409, Sec-19, Block A, G,T, Road, Gobindgarh Admsg 8479 Sq Ft. Ind Plot Of Smt Machines (India) Ltd Near Vishwakarma Motors on Minor Canal, Ajnali Gbdgarh Plot of SMT Machines (India) Limited Behind Gobind Filling, St. St No. 2 Nr. Parbhatpuri Charitable Hospital, Amloh Road, Mandi Gbdgarh Admsg 6750 Sq Ft.

FIXED ASSETS

• Land
• Residential House
• Factory Shed and Building
• Plant and Machinery
• Office Equipments
• Lab Equipments
• Computer
• Fax and EAPBX
• Air Conditioner
• Cellular Phone
• Fire Fighting Equipments

• Furniture and Fixture
• Cycle and Rickshaw
• Car
• Scooter and Moped
• Office-cum-Residence

TRADE REFERENCES :

· PRS Rolling Mills Private Limited

· Goyal Steel

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.51.72
UK Pound	1	Rs.81.42
Euro	1	Rs.69.89

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	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		49

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.