MIRA INFORM REPORT

Report Date :

30.08.2012

IDENTIFICATION DETAILS

Name :	MICROMATIC GRINDING TECHNOLOGIES LIMITED
Formerly Known As :	PARISHUDH SADHAN YANTRA LIMITED
Registered Office :	301-302, Vikas Deep, Laxmi Nagar, District Center, New Delhi – 110092
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	31.03.1982
Com. Reg. No.:	55-42422
Capital Investment / Paid-up Capital :	Rs.9.290 Millions
CIN No.: [Company Identification No.]	U74899DL1982LC042422
TAN No.: [Tax Deduction & Collection Account No.]	MRTM01100B
PAN No.: [Permanent Account No.]	AAACM9654P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufactures a wide range of External, Internal, Universal and special purpose cylindrical grinders in CNC, PLC and Hydraulic versions to the exacting requirements.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 890000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal for business dealing 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	(Term Loan) BB-
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	January, 2011

Rating Agency Name	ICRA
Rating	(Proposed Limit) A4
Rating Explanation	Having minimal degree of safety regarding timely payment of financial obligation, it carry very high credit risk and susceptible to default.
Date	January, 2011

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	301-302, Vikas Deep, Laxmi Nagar, District Center, New Delhi – 110092, India
Tel. No.:	91-11-22026874/ 22414232
Fax No.:	Not Available
E-Mail :	aravindanp75@sify.com micromaticgrindingtechnologies@hotmail.com skdujari@micromaticgrinding.com mgtl@del3.vsnl.net.in sales@micromaticgrinding.com mgtl@acemicromatic.com sedhand@micromaticgrinding.com
Website :	http://www.micromaticgrinding.com
Factory 1:	MGT Ghaziabad C-27/ C-28, Meerut Road, Industrial Area, Ghaziabad - 201003, Uttar Pradesh, India
Tel. No.:	91-120-2712137/ 69/ 79/ 2723216
Fax No.:	91-121-2717823
Factory 2:	C-40/1, Meerut Road, Industrial Area, Ghaziabad – 201003, Uttar Pradesh, India
Factory 3:	MGT Bangalore 5/A, Servey No.74, 103, 106, 107, KIADB Industrial Area, Dobaspet, Nelamangala Tuluk, Bangalore - 562111, Karnataka, India
Tel. No.:	91-80-27735383/ 85/ 86/ 87/ 27702449
Fax No.:	91-80-27735384

DIRECTORS

(AS ON 17.09.2011)

Name :

Mr. Narendra Kumar Dhand

Designation :

Chairman Cum Managing Director

Address :

R-5-58, Raj Nagar, Ghaziabad – 201002, Uttar Pradesh, India

Date of Birth/Age :

09.09.1943

Date of Appointment :

01.08.2008

Email :

nkdhand@micromaticgrinding.com

DIN No.:

00379502

Other Directorships :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U74899DL1982PLC042422	MICROMATIC GRINDING TECHNOLOGIES LIMITED	Managing director	01/08/2008	31/03/1982	Active	NO
2	U74899DL1987PTC029798	MICROMATIC MACHINE TOOLS PRIVATE LTD	Director	25/04/1988	25/04/1988	Active	NO
3	U74899DL1990PTC039589	APP-TECH MACHINES PRIVATE LIMITED	Director	21/03/1990	21/03/1990	Active	NO
4	U29290MH1973GAP016420	INDIAN MACHINE TOOL MANUFACTURERS ASSOCIATION	Director	20/08/2004	20/08/2004	Active	NO
5	U29200DL2008FLC182050	TOYODA MICROMATIC MACHINERY INDIA LIMITED	Director	13/08/2008	13/08/2008	Active	NO

Name :

Mr. Jagdish Pal Malik

Designation :

Whole-time director

Address :

201, Tower – 111, Sun Breeze Appartment, Vaishali Sector – 4, Ghaziabad – 201010, Uttar Pradesh, India

Date of Birth/Age :

03.02.1978

Date of Appointment :

01.01.2008

DIN No.:

01990286

Other Directorships :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U74899DL1982PLC042422	MICROMATIC GRINDING TECHNOLOGIES LIMITED	Whole-time director	01/01/2008	13/12/2007	Active	NO
2	U28910PB2001PLC024790	R.N.GUPTA AND COMPANY LIMITED	Director	30/09/2011	14/08/2011	Active	NO

Name :

Mrs. Neelam Dhand

Designation :

Whole Time Director

Address :

R-5-58, Raj Nagar, Ghaziabad – 201002, Uttar Pradesh, India

Date of Birth/Age :

17.08.1950

Date of Appointment :

01.08.2008

Email :

neelamdhand@micromaticgrinding.com

DIN No.:

00358572

Other Directorships :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1982PLC042422	MICROMATIC GRINDING TECHNOLOGIES LIMITED	Whole-time director	01/08/2008	15/05/1982	-	Active	NO
2	U74899DL1987PTC029798	MICROMATIC MACHINE TOOLS PRIVATE LTD	Director	17/11/1987	17/11/1987	12/04/2010	Active	NO
3	U74899DL1990PTC039589	APP-TECH MACHINES PRIVATE LIMITED	Director	21/03/1990	21/03/1990	-	Active	NO
4	U13203DL2007PTC161269	MICROMATIC MANUFACTURING SYSTEMS PRIVATE LIMITED	Additional director	06/12/2007	06/12/2007	-	Active	NO

Name :

Mr. Kapil Dhand

Designation :

Whole Time Director

Address :

R-5-58, Raj Nagar, Ghaziabad – 201002, Uttar Pradesh, India

Date of Birth/Age :

03.02.1978

Date of Appointment :

01.04.2010

Email :

kdhand@micromaticgrinding.com

DIN No.:

00390692

Other Directorships :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U74899DL1982PLC042422	MICROMATIC GRINDING TECHNOLOGIES LIMITED	Whole-time director	01/04/2010	05/10/2005	Active	NO
2	U13203DL2007PTC161269	MICROMATIC MANUFACTURING SYSTEMS PRIVATE LIMITED	Director	29/03/2007	29/03/2007	Active	NO

Name :

Mr. Sidhartha Dhand

Designation :

Whole Time Director

Address :

R-5-58, Raj Nagar, Ghaziabad – 201002, Uttar Pradesh, India

Date of Birth/Age :

22.11.1972

Date of Appointment :

01.04.2010

Email :

sedhand@micromaticgrinding.com

DIN No.:

00390761

Other Directorships :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U74899DL1982PLC042422	MICROMATIC GRINDING TECHNOLOGIES LIMITED	Whole-time director	01/04/2010	05/10/2005	Active	NO

Name :

Mr. Pradeep Dinodia

Designation :

Director

Address :

A-9 A, Maharani Bagh, New Delhi – 110065, India

Date of Birth/Age :

02.12.1953

Date of Appointment :

24.01.2005

Email :

pradeepdinodia@micromaticgrinding.com

DIN No.:

00027995

Other Directorships :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Csurrent designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L15311DL1993PLC052624	DFM FOODS LIMITED	Director	08/03/1994	08/03/1994	-	Active	NO
2	L74899DL1989PLC034923	DCM SHRIRAM CONSOLIDATED LIMITED	Director	18/07/1994	18/07/1994	-	Active	NO
3	U74899DL2000PLC103494	ULTIMA FINVEST LIMITED	Director	15/07/2000	15/07/2000	-	Active	NO
4	L35911DL1984PLC017354	HERO MOTOCORP LIMITED	Director	31/03/2001	31/03/2001	-	Active	NO
5	U74899DL1995PLC065253	HERO CORPORATE SERVICES LIMITED	Director	22/08/2001	22/08/2001	-	Active	NO
6	U31909DL1984PTC103720	MANISHA COMMERCIAL PRIVATE LIMITED	Director	23/11/2001	23/11/2001	30/01/2009	Active	NO
7	U74899DL1993PTC052670	SHRIRAM VERITECH SOLUTIONS PRIVATE LIMITED	Director	02/05/2002	02/05/2002	30/01/2009	Active	NO
8	L29112DL1963PLC004084	SHRIRAM PISTONS AND RINGS LIMITED	Director	16/05/2003	16/05/2003	-	Active	NO
9	U74899DL1982PLC042422	MICROMATIC GRINDING TECHNOLOGIES LIMITED	Director	24/01/2005	24/01/2005	-	Active	NO
10	L17115RJ1960PLC008216	RSWM LIMITED	Director	09/03/2005	09/03/2005	27/01/2009	Active	NO
11	U74899DL1984PTC109092	SHABNAM COMMERCIAL PRIVATE LIMITED	Director	18/10/2006	18/10/2006	30/01/2009	Active	NO
12	U74899DL1984PTC109091	SARVA COMMERCIAL PRIVATE LIMITED	Director	18/11/2006	18/11/2006	30/01/2009	Active	NO
13	U31909DL1984PTC106973	SERA COM PRIVATE LIMITED	Director	30/11/2006	30/11/2006	30/01/2009	Active	NO
14	U51395TN2006PTC060554	PANASONIC INDIA PRIVATE LIMITED	Director	15/12/2006	15/12/2006	10/09/2008	Active	NO
15	U51909DL2005PLC136329	SPR INTERNATIONAL AUTO EXPORTS LIMITED	Director	29/05/2007	29/05/2007	-	Active	NO
16	L34300DL1986PLC023540	BHARAT SEATS LIMITED	Additional director	04/06/2008	04/06/2008	23/01/2009	Active	NO
17	L74999RJ1938PLC019511	JK LAKSHMI CEMENT LIMITED	Director	25/07/2009	16/03/2009	-	Active	NO
18	U93000DL2011PTC221365	DINODIA CAPITAL ADVISORS PRIVATE LIMITED	Director	23/06/2011	23/06/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 17.09.2011)

Names of Shareholders	No. of Shares
App-Tech Machines Private Limited, India	689200
Narendra Kumar Dhand	56200
Neelam Dhand	56200
Sidhartha Dhand	56200
Kapil Dhand	56200
Ramesh Kumar Mahajan	5000
Shiv Kumar Dujari	5000
Chandra Kanta Dujari	5000
Total	929000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Bodies corporate	74.20
Directors or relatives of directors	24.20
Other	1.60
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufactures a wide range of External, Internal, Universal and special purpose cylindrical grinders in CNC, PLC and Hydraulic versions to the exacting requirements.

Products :

Products Description	Item Code No.
Grinding, Lapping, Honing and Polishing Machines	3574

GENERAL INFORMATION

Customers :

· Hero Honda Motors Limited

· BOSCH Limited

· TVS Motors Company Limited

· Honda Scooters and Motorcycles

· Tata Motors Company Limited

· Rane Engine Valves

· Toyota Kirloskar Auto pats

· YAMAHA India

· Godrej

· Kirloskar Group

· Widia

· Mahindra and Mahindra

· ShriRam Honda

· TATA Cummins Limited

· New Holland Tractors

· BPL, INDIA

· Cummins Turbo Technology

· Timken India Limited

· Guehring OHG

· Bajaj Auto Limited

· Sundaram Fasteners Limited

· Delphi TVS Diesel Systems

· Lucas TVS Limited

· Shri Ram Pistons and Rings Limited

· Bharat Forge Limited

· Indian Railways

· Rane TRW

· Sundaram Clayton

No. of Employees :

Not Available

Bankers :

• Canara Bank

Main Branch, Maliwara Chowk, Ghaziabad – 201001, Uttar Pradesh, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Term Loan
From Canara Bank (Repayable within a year Rs.31.200 Million)	136.355	154.424
Working Capital Loan from Bank
From Canara Bank Rupee Loan	33.232	35.022
Vehicle Loans
From Scheduled Bank	0.000	0.170
From Tata Capital Limited	1.272	0.000
Total	170.859	189.616
NOTE i) The Term Loan and Working Capital Loan from Canara Bank is secured by way of equitable mortgage on Company's Factory, Land and Building at C-27 and C-28 and C-40/1, Industrial Area Meerut Road, Ghaziabad and factory land and building, 5A Dobaspat Industrial Area, Nelamangala Taluk, Bangalore and Hypothecation of all the movable properties including tools, machineries, spares and accessories and such other assets both present and future. ii) The Working Capital Loan from Canara Bank is secured by way of Hypothecation of Stocks and Book Debts of the company. iii) The Term Loan from Canara Bank is secured by way of Hypothecation of Plant and Machinery financed by them iv) The Loans from Canara Bank are further secured by guarantee of the Holding Company v) Vehicle loans are secured by way of hypothecation of vehicles.
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Directors	23.300	21.500
From Shareholders	1.000	1.000
From Company	4.000	14.000
Others	5.340	5.835
Total	33.640	42.335

Banking Relations :	--
Auditors :
Name :	M S Kapur of B K Kapur and Company Chartered Accountants
Address :	17, Navyug Market, Ghaziabad – 201001, Uttar Pradesh, India
PAN No.:	AAFFB2355L
Holding Company :	· App-Tech Machines Private Limited, India
Subsidiaries :	· Micromatic Manufacturing Systems Private Limited CIN No.: U13203DL2007PTC161269

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
2750000	Equity Shares	Rs.10/- each	Rs.27.500 Millions
25000	14% Redeemable Non-cumulative Preference Share	Rs.100/- each	Rs.2.500 Millions
	Total		Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
929000	Equity Shares	Rs.10/- each	Rs.9.290 Millions

NOTE:

Of the above:

A] 40000, Equity shares of Rs.10/- each were allotted as fully paid-up pursuant to an agreement without payment being received in cash.

B] 683100, Equity shares have been allotted as fully paid-up Bonus shares by capitalization of General Reserve.

C] 674200, Equity shares of Rs.10/- each Fully paid –up are held by APP-Tech Machines Private Limited – The Holding Company.

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		9.290	9.290	9.290
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		214.182	206.212	231.899
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		223.472	215.502	241.189
LOAN FUNDS
1] Secured Loans		170.859	189.616	207.324
2] Unsecured Loans		33.640	42.335	35.060
TOTAL BORROWING		204.499	231.951	242.384
DEFERRED TAX LIABILITIES		2.535	0.000	12.731
TOTAL		430.506	447.453	496.304
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		312.654	332.690	371.852
Capital work-in-progress		6.414	5.151	4.775
INVESTMENT		11.697	11.697	11.698
DEFERREX TAX ASSETS		0.000	0.546	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	265.657	167.838	136.092
	Sundry Debtors	40.450	44.011	43.754
	Cash & Bank Balances	50.628	19.885	13.332
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	40.891	29.549	27.368
Total Current Assets		397.626	261.283	220.546
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	106.783	67.955	42.755
	Other Current Liabilities	191.102	95.959	69.812
	Provisions	0.000	0.000	0.000
Total Current Liabilities		297.885	163.914	112.567
Net Current Assets		99.741	97.369	107.979
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		430.506	447.453	496.304

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	561.689	334.062	442.764
		Other Income	14.008	12.438	25.924
		TOTAL (A)	575.697	346.500	468.688
Less	EXPENSES
		Increase/ (Decrease) in Finished and Semi Finished Goods		(35.531)	22.965
		Material and Manufacturing	498.448	235.085	242.148
		Employees, Remuneration and Benefits		69.250	71.797
		Administrative Expanses		43.935	58.178
		TOTAL (B)	498.448	312.739	395.088
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		77.249	33.761	73.600
Less	FINANCIAL EXPENSES (D)		26.644	28.926	17.644
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		50.605	4.835	55.956
Less/ Add	DEPRECIATION/ AMORTISATION (F)		39.363	43.801	31.887
	PROFIT BEFORE TAX (E-F) (G)		11.242	(38.966)	24.069
Less	TAX (H)		3.272	(13.279)	8.683
	PROFIT AFTER TAX (G-H) (I)		7.970	(25.687)	15.386
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		86.165	111.852	100.640
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	2.000
		Interim Equity Dividend Paid	0.000	0.000	1.858
		Corporate Tax on Dividend	0.000	0.000	0.316
	BALANCE CARRIED TO THE B/S		94.135	86.165	111.852
	IMPORTS
		Raw Materials and Stores & Spares	NA	27.732	52.075
	TOTAL IMPORTS		NA	27.732	52.075
	Earnings Per Share (Rs.)		8.58	(27.65)	16.56

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.38	(7.41)	3.28
Net Profit Margin (PBT/Sales)	(%)	2.00	(11.66)	5.44
Return on Total Assets (PBT/Total Assets}	(%)	1.58	(6.56)	4.06
Return on Investment (ROI) (PBT/Networth)		0.05	(0.18)	0.10
Debt Equity Ratio (Total Liability/Networth)		2.25	1.84	1.47
Current Ratio (Current Asset/Current Liability)		1.33	1.59	1.96

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

OPERATIONS:

The Indian economy has emerged rapidly from the slowdown caused by the global financial crisis of 2007-09 and remains one of the fastest growing economics of the world. After dipping to 6.8% in 2008-09, GDP growth had recovered sharply to 8% and is projected to remain above this level in 2010-11. Economic and financial events over the year, however, have increased concern about the sustainability of the growth momentum.

Three concerns are likely to persist in 2011-12: high inflation, fiscal stress and the current account deficit. The impact of these is likely to felt with varying intensity during the course of 2011-12.

The fundamental drivers of India's medium term growth prospects remain intact. However, global developments, in conjunction with Indian policy responses to the concerns noted above, are likely to make 2011-12 a challenging year.

Global economic and financial conditions can be expected to remain adverse for some time, particularly in the after math of Japan's natural disaster. Fiscal consolidation in Europe, the main export market, will probably moderate growth in second half. In India inflationary pressures are likely to persist and hence result in a further, though moderate, monetary policy tightening, the impact of which will be higher borrowing costs.

The world has been recovering from the global financial crisis which devastated the economies of so many countries and so many business sectors.

The greenfield expansion at Dobbaspet near Bangalore which started commercial production w.e.f. 1^st December, 2008 is progressing steady and cleared most of the initial teething troubles.

The revenue of the company increased to Rs.615.000 Millions during the year against Rs.362.000 Million in the previous year. Profit before tax was Rs.11.242 Millions against loss before tax of Rs.38.835 Millions in last year.

Export turnover of the company also increased significantly to the highest of Rs.40.700 Millions from a low of Rs. 5.000 Millions during the year FOB basis.

FUTURE OUTLOOK

Barring unforeseen circumstances, the outlook for 2011-12 is very encouraging in view of the overall economic recovery and heavy pending orders from the customers. They remain confident of the Indian Growth story and long-term business prospects of the company.

It is a matter of great pride that our success over the years, have come without ever comprising on integrity, the environmental and social obligations and regulatory compliance.

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	90063585
Corporate identity number of the company	U74899DL1982PLC042422
Name of the company	MICROMATIC GRINDING TECHNOLOGIES LIMITED
Address of the registered office or of the principal place of business in India of the company	301, Vikas Deep, Laxmi Nagar Disst Centre, Delhi – 110092, India skdujari@micromaticgrinding.com
Type of charge	Immovable Property Book Debts Movable Property Others: Plant and Machinery
Particular of charge holder	Canara Bank Main Branch, Maliwara Chowk, Ghaziabad – 201001, Uttar Pradesh, India casaurabhgoel.roc@gmail.com
Nature of description of the instrument creating or modifying the charge	As per Pro note and Letter Extending Credit Facilities dated 01-12-2011
Date of instrument Creating the charge	01.12.2001
Amount secured by the charge	Rs.275.500 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest The rate shall be charged @ 3.5% over Base Rate with a minimum @ 17.25% Per Annum with monthly rest or the rate or rates as may be prescribed by Bank from time to time. Terms of Repayment As per Agreement Margin 25% Extent and Operation of the charge 100% Others The following credit facilities have been reviewed/ enhanced/sanctioned:- OCC = Rs.48.000 Millions (Including New Adhoc Limit of Rs.8.000 Millions) LC = Rs.12.500 Millions BG = Rs.60.000 Millions Term Loans = Rs.155.000 Millions Total = Rs.275.500 Millions
Short particulars of the property charged	First charge by way of hypothecation of stock raw material, work in process, finished goods, stores and spares etc First charge by way of Hypothecation of Book Debts both Present and Future. Hypothecation of all plant & Machinery installed or to be installed. Hypothecation of Plant & Machinery and Misc Fixed Assets to be purchased/ imported out of term loan at Bangalore Ist Charge/EMT of leasehold property situated at plot No-C-40/1 UPSIDC Industrial Area Meerut Road Ghaziabad. Ist Charge of factory Land and Building of Unit-II situated at C-27 Industrial area Meerut Road Ghaziabad. Ist Charge of Factory Land and Building measuring 17158 sq meters of lease hold land at Plot No-5A, Dobaspet Industrial Area Nelamangala Taluk Banglore District
Date of latest modification prior to the present modification	16/08/2011
Particulars of the present modification	The charge over all type of stock, book debts, Plant andfMachinery and immovable property has been enhanced from Rs.267.500 Millions to Rs.275.500 Millions. A Adhoc Limit of Rs.8.000 Millions has been granted by the Bank to the Company. Other terms and conditions are remained same.

FIXED ASSETS:

· Leasehold Land

· Building

· Electrical Fittings

· Plant and Machinery

· Furniture and fixture

· Office and IT Equipment

· Motor Vehicles

· R and D Assets

· Patterns

PRESS RELEASE

Micromatic Grinding Technologies to opens Rs.250.000 Millions plant at Ghaziabad; Inks technical collaboration with US$9billion JTEKT Corporation of Japan

Released on = September 20, 2006, 6:10 am

Press Release Author = PRHUB

Industry = Industrial

Press Release Summary = Ghaziabad-based Micromatic Grinding Technologies (MGT), the largest manufacturer of high-precision grinding machines with a domestic market share in excess of 50% and a member of the Rs.5000.000 Millions AceMicromatic Group, today announced that it is opening a new plant at Ghaziabad to manufacture new range of grinding machine which will revolutionize the automotive engineering industry.

Press Release Body = Ghaziabad-based Micromatic Grinding Technologies (MGT), the largest manufacturer of high-precision grinding machines with a domestic market share in excess of 50% and a member of the Rs.5000.000 Millions AceMicromatic Group, today announced that it is opening a new plant at Ghaziabad to manufacture new range of grinding machine which will revolutionize the automotive engineering industry. Built with an investment of Rs.250.000 Millions, the plant would be the first machine tool plant in India to be fully air-conditioned and takes the total manufacturing capacity of MGT to over one lakh sq. ft. The new plant, which allows MGT to have a better control on the quality of the high precision grinding machines that it produces, would be formally inaugurated by Mr. Pawan Munjal of Hero Honda tomorrow. On the occasion, MGT announced that its four year partnership with JTEKT Corporation of Japan has evolved into a technical collaboration, leading to the development of a new CAM Grinding machine which would be manufactured at the new plant and rolled out in the Indian market before being launched elsewhere. With the new plant and increased investments, the company expects its revenues to grow multi-fold to Rs.3000.000 Millions by 2010.

On the technical collaboration, Mr. Hitoshi Akhane, Executive Director, JTEKT Corporation, said, "The four years of working together has convinced us of the technological capability and expertise of the team at MGT. That coupled with the overall growth in demand of the Indian automotive industry made it logical for us to evolve that relationship into a formal technical collaboration with MGT which we feel hold great promise and allows adoption of our technology in growth markets like Asia."

In his comments, Mr. N K Dhand, Managing Director, Micromatic Grinding Technologies Limited said," The inauguration of the new plant is a milestone not only for MGT but for the entire machine tools sector in India as it pushes the envelope further on the kind of manufacturing that can be done out of India and allows us to join the global league of players with such facilities. The technical collaboration with JTEKT Corporation is quite relevant as it provides us access to the cutting-edge and latest technologies of a global market leader thus adding muscle to our aim of furthering domestic leadership and increasing global foothold." "The presence and support of Mr. Munjal and Hero Honda deserves special mention as they have been the single largest customer of us for the past two decades and a true partner who has been responsible for our growth," he further added. JTEKT Corp. formed through the merger of Toyoda Machine Works Limited and Koyo in 2005 is the world leader in steering systems, driveline products, bearings and machine tools with a turnover of US$9 billion. The conglomerate manufactures markets and supports its customers through a global network that spans growing number of countries.

Incepted in 1973, Micromatic Grinding Technologies Limited is India's largest producer of precision Grinding Machines which are used by the automotive, general engineering and defense sectors as part of their component manufacturing process. The company has since sold 3000 machines to Hero Honda, Tata Motors, MICO, Mahindra and Mahindra, Delphi TVS, Toyota Kirloskar Auto Parts, Bajaj Auto, Honda Siel, Sonakoyo, Rane Group, Suzuki Motors and Showa among others. Besides India, MGT currently serves customers in UK, USA, Germany, Italy, France, Middle-east, Australia, Japan, China, Russia and Thailand. Micromatic Grinding Technologies Limited is a part of the Rs.5000.000 Millions AceMicromatic Group which consists of Ace Designers, Ace Manufacturing Systems, Pragati Automation and Micromatic Machine Tools (MMT). Each group company is a market leader in its niche and MMT is the common marketing company for all the group companies.

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 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.55.67
UK Pound	1	Rs.88.05
Euro	1	Rs.69.92

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.