MIRA INFORM REPORT

Report Date :

30.06.2012

IDENTIFICATION DETAILS

Name :	GUINDY MACHINE TOOLS LIMITED (w.e.f. 30.09.1992)
Formerly Known As :	GUINDY MACHINE TOOLS PRIVATE LIMITED
Registered Office :	214, [Old No.196], Velachery Tambaram, Main Road, Pallikaranai, Chennai – 600100, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.10.1959
Com. Reg. No.:	18-003951
Capital Investment / Paid-up Capital :	Rs.12.106 Millions
CIN No.: [Company Identification No.]	U29130TN1959PLC003951
TAN No.: [Tax Deduction & Collection Account No.]	CHET00638B
PAN No.: [Permanent Account No.]	AAACG1118Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Work Holding Devices and Metrology Equipments.
No. of Employees :	450 (Approximately)

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 as fair. Business is active. Payments are reported to be usually correct 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. Narendran Somadev
Designation :	Assistance Manager
Contact No.:	91-9444558482
Date :	21.06.2012

LOCATIONS

Registered Office :	New No.214, [Old No.196], Velachery Tambaram, Main Road, Pallikaranai, Chennai – 600100, Tamilnadu, India
Tel. No.:	91-44-22460624 / 629 / 22460811 / 22460812 / 22461103 / 22462213
Mobile No.:	91-9444558482 (Mr. Narendra Somdev)
Fax No.:	91-44-22460112 / 22460317
E-Mail :	finance@gmt.co.in gmt@gmt.co.in
Website :	http://www.gmt.co.in
Area :	3.5 acre
Location :	Owned
Factory :	Plot No.10412, SIPCOT Industrial Complex, Phase – 1, Hosur – 635126, Tamilnadu, India
Area :	1 acre
Location :	Owned

DIRECTORS

(AS ON 09.09.2011)

Name :	Mr. Venugopal Balasubramaniam
Designation :	Director
Address :	NO.47, 3^rd Main Road, Ram Nagar, Nanganallur, Chennai – 600061, Tamilnadu, India
Date of Birth/Age :	02.06.1947
Date of Appointment :	01.04.2006
DIN No.:	00186010
Name :	Mr. Jayashrre Mani Swaminathan
Designation :	Managing Director
Address :	Flat No.17, Kalakshtra Road, Thiruvanniyur, Chennai – 600041, Tamilnadu, India
Date of Birth/Age :	13.04.1958
Date of Appointment :	28.09.2002
DIN No.:	00186174
Name :	Mr. Leela Raman Venkat
Designation :	Whole-time Director
Address :	16, First East Street, Kamarat Nagar, Thiruvanniyur, Chennai – 600041, Tamilnadu, India
Date of Birth/Age :	03.05.1933
Date of Appointment :	28.09.2002
DIN No.:	00186313
Name :	Mr. Krishnamachari Jagannathan
Designation :	Director
Address :	1-15, Prakriti , 365- 368, 100 Feet Road, Vijay Nagar, Velachery, Chennai – 600042, Tamilnadu, India
Date of Birth/Age :	23.12.1938
Date of Appointment :	01.04.2006
DIN No.:	00186245
Name :	Mr. Venkatakrishnan R
Designation :	Director
Address :	G2, oyster Opera 35 and 36, Gangaz Street, Besant Nagar, Chennai – 600090, Tamilnadu, India
Date of Birth/Age :	22.11.1958
Date of Appointment :	19.02.2007
DIN :	00332632

KEY EXECUTIVES

Name :	Mr. Narendran Somadev
Designation :	Assistance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 09.09.2011)

Names of Shareholders	No. of Shares
K.V.Abraham	2250
L.Amalraj	2700
Anjana Chaturbhuj Dingwaney	9000
L.Balakrishnan	29700
Bhairavi H.Shah	36000
Bhavani Srinivasan	38475
Challagalla Sita Prasad	3150
G.Chidambar	1800
S.Chempakkam	43380
Elisheba Chacko	6375
Harshad M Shah	63000
Hemalata Krishnamurthy	4500
Indira Srinivasan	27000
Jayashrree S.Mani	570150
Kartik J Shah	36000
Leela Venkat Raman	1941150

(AS ON 09.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	69.70
Other top fifty shareholders	22.60
Others	7.70
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Work holding Devices and Metrology Equipments

Products :

WORKHOLDING

Products Description	Item Code No.
Chucks	84663010
Actuators	84663090
Lapping Machines	84604020
Grinding Machines	94602990
Indexing Tables	84602990

FOUNDRY PRODUCTS

Products Description	Item Code No.
Grey Cast Iron Casting	73259910
SG Iron Casting	73259910

METROLGY PRODUCTS

Products Description	Item Code No.
Granite Surface Plates	90314900
Coordinate Measuring Machines	84604020

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Suppliers :

· Renshaw India

Customers :

Wholesalers and Retailers

· Ace Designer Limited, Bangalore

· Maruti Suzuki

· Galaxy Machineries

· Askar Micron

· Bharat Forge

· Hero Honda

· Hi Tech Gears

· HMT ILJIN

· KSB Pump

· Pavan Precision

· PMT Machines

· RICO Proteck

· Sands Precision

· Shanthi Gears

· Sunbeam Auto Limited

· Marhall Machines Private Limited

· Sri Ranganathan Industries

· Peevee Precision Works Private Limited, Guindy

No. of Employees :

450 (Approximately)

Bankers :

· State Bank of India

Commercial Branch, 1/65 A, G.S.T. Road, Guindy, Chennai – 600032, Tamilnadu, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Overdraft Account hypothecation of Stock-in-trade-Working Capital limits	38.427	9.720
Other Term Loans Secured on Fixed Assets	31.189	47.137
Interests on Term Loans	0.364	0.000
Total	69.980	56.857
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loan from a Director	5.000	4.200
Total	5.000	4.200

Banking Relations :	--
Auditors :
Name :	P B Vijaya Raghavan and Associates Chartered Accountant
Address :	New No.51, Giri Road, T. Nagar, Chennai - 600017, Tamilnadu, India
PAN No.:	AAAFV1842R
Subsidiaries :	Quick Thread Private Limited CIN : U17231TN1937PTC006353

CAPITAL STRUCTURE

(AS ON 09.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/-each	Rs.40.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3631806	Equity Shares	Rs.10/-each	Rs.36.318 millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/-each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1210602	Equity Shares	Rs.10/-each	Rs.12.106 millions

NOTE:

(Of the above 779214 shares were allotted as fully paid up by issue of bonus shares by way of capitalization of reserves.)

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		12.106	12.106	12.106
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		210.625	179.841	173.930
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		222.731	191.947	186.036
LOAN FUNDS
1] Secured Loans		69.980	56.857	78.214
2] Unsecured Loans		5.000	4.200	8.200
TOTAL BORROWING		74.980	61.057	86.414
DEFERRED TAX LIABILITIES		0.000	0.000	1.398
TOTAL		297.711	253.004	273.848
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		179.362	171.805	190.798
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		4.572	3.863	3.117
DEFERREX TAX ASSETS		1.798	0.060	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	73.737	53.897	51.820
	Sundry Debtors	12.100	19.814	27.647
	Cash & Bank Balances	53.342	23.805	9.763
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	55.060	83.707	58.549
Total Current Assets		194.239	181.223	147.779
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	12.834	12.330	15.856
	Other Current Liabilities	33.107	78.222	47.118
	Provisions	36.319	13.395	4.872
Total Current Liabilities		82.260	103.947	67.846
Net Current Assets		111.979	77.276	79.933
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		297.711	253.004	273.848

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sale of product and other income	407.848	230.667	291.926
		TOTAL	407.848	230.667	291.926
Less	EXPENSES
		Manufacturing and Other Expenses	321.053	190.014	259.951
		TOTAL	321.053	190.014	259.951
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		86.795	40.653	31.975
Less/ Add	DEPRECIATION/ AMORTISATION		21.431	22.805	23.817
	PROFIT BEFORE TAX		65.364	17.848	8.158
Less	TAX		22.582	4.862	0.337
	PROFIT AFTER TAX		42.782	12.986	7.821
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		12.502	11.591	11.460
	Excess Tax Provision for earlier years		0.000	0.000	0.231
Less	APPROPRIATIONS
		Transfer to General Reserve	5.000	5.000	5.000
		Dividend	10.290	6.053	2.421
		Tax on Dividend	1.709	1.022	0.411
		Shirt Tax provision made for the earlier years	0.000	0.000	0.089
	BALANCE CARRIED TO THE B/S		38.285	12.502	11.591
	Earnings Per Share (Rs.)		35.34	10.73	6.46

Particulars	31.03.2012
Sales Turnover (Approximately)	440.000

Expected Sales (2012-13): Rs.550.000 Millions

The above information has been parted by Mr. Narendra Somdev.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	10.49	5.63	2.68
Net Profit Margin (PBT/Sales)	(%)	16.03	7.74	2.79
Return on Total Assets (PBT/Total Assets}	(%)	17.50	5.05	2.41
Return on Investment (ROI) (PBT/Networth)		0.29	0.09	0.04
Debt Equity Ratio (Total Liability/Networth)		0.71	0.86	0.83
Current Ratio (Current Asset/Current Liability)		2.36	1.74	2.18

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	Yes
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	Yes
Major Customers	Yes
Payments Terms	Yes
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes

WORKING RESULTS:-

The Company has achieved a turnover of Rs.407.800 Millions during the year. This represents a 76 percent increase over the previous year. The Directors would like to place on record their appreciation to the entire GMT team for the performance in the face of challenging circumstances.

The outlook for the current year continues to be positive; there are clear indicators for increase in the demand for our products particularly from OEM customers in the Machine Tools Sector, the Automotive and other General Engineering Industries. The company is confident of achieving a much higher turnover during 2011-12.

There is a rise in the net surplus, as a result of increase in sales and effective cost management initiated by the Management. Other contributing factors have been a steady increase in demand for ferrous castings and product mix.

Over the last 50 years the company has built up an exceptionally high degree and wide variety of skills in design and process engineering in precision manufacture and assembly. As part of its initiatives to diversify the product range, the company proposes to offer services to produce custom-built products utilizing these skills. They have received substantial orders this year for such products.

FUTURE PROSPECTS:-

The general trend and prospects of business are challenging but in the current market scenario our inflow of orders from various sectors is expected to rise. The board is cautiously optimistic on the performance for the current year.

The order value pending execution as on 31.03.2011 was Rs.80.000 Millions approximately.

The quality of the products and their reputation for enduring performance with their customers in the end user sector as well as the OEMs have been well established. There is a need to augment existing production capacity to meet the increasing demand, in particular for Co-Ordinate Measuring Machines (CMMs) and Ferrous Foundry Business and the Management is taking active efforts in this direction. Accordingly, two new induction furnaces are being installed in the ferrous foundry, expanding its capacity to 350 tons per months from the current 30 tons, and a state of the art facility is being built to manufacture CMMs.

The Board is currently checking ways to grow the business in various ways by looking for niche product ranges with high value addition.

A new team of young engineers have been recruited to strengthen the sales and marketing efforts of the company. Apart from this, the World Wide Web is being actively used to generate enquiries and publicize their product range.

The company has acquired all the assets of its wholly owned subsidiary/s Quick Thread Private Limited. The aim is to expand the product range and at the same time reduce footprint, streamline and optimize operations.

TRADE REFERENCE:

· Ape Designer Limited, Bangalore

· Renshaw India

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	90302483
Corporate identity number of the company	U29130TN1959PLC003951
Name of the company	GUINDY MACHINE TOOLS LIMITED
Address of the registered office or of the principal place of business in India of the company	Velachery Main Road, Pallikaranai Chennai – 601302, Tamil Nadu, India gmt@gmt.co.in
Type of charge	Immovable property Book Debts Movable Property
Particular of charge holder	State Bank of India Commercial Branch, 65-A, G.S.T Road, Guindy, Chennai – 600032, Tamilnadu, India mahendiran56@gmail.com
Nature of description of the instrument creating or modifying the charge	1. Supplemental Agreement of Loan for increase in the overall limit. Form C.1-A 2. Supplemental Agreement of Hypothecation of Goods and Assets. Form C.2-A 3. Letter regarding the grant of Individual Limits within the overall limit. Form C.5 4. EM Confirmation Letters (3.Nos) 5. Board Resolution
Date of instrument Creating the charge	10/09/2011
Amount secured by the charge	Rs.145.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest CC, TL-I and II: 5.25% over Base Rate (10.00%) i.e. 15.25% p.a. with monthly rests. TL-III: 4.75% over Base Rate (10.00%) i.e. 14.755 p.a. with monthly rests. Terms of Repayment Working Capital: Repayable on Demand Term Loans: As per the existing Terms and Conditions. Margin Raw Materials : 25% Stocks-in-Process: 25% Finished Goods : 25% Receivables : 25% Letter of Credit : 25% Bank Guarantee : 25% Extent and Operation of the charge As mentioned in the Agreements
Short particulars of the property charged	CC: Hypothecation of entire Current Assets such as RM, SIP, FG, Stores, Spares, Consumables, Receivables and other Current Assets belonging to the Company. TL-I: Equitable Mortgage over the Lease Hold Rights of the immovable property situated at 104/1, SIPCOT Industrial Complex, Hosur, TL-II and III : Hypothecation of Machineries purchased out of the Bank Finance LC: Document of title to goods covered under LC and charge over the Current Assets as applicable to CC (Hypn) BG: Counter Guarantee and charge over the Current Assets as applicable to CC (Hypn) BD (NLC): Document of title to goods covered under the Bills negotiated in respect of DP and accepted Bills of Exchange in case of DA terms. Extension of Equitable Mortgage over the immovable properties belonging to the Company Other existing securities remain same.
Date of latest modification prior to the present modification	15/02/2011
Particulars of the present modification	By the present modification, the overall limit has been enhanced to Rs.145.000 Millions and secured by the Current Assets, Machineries and immovable properties belonging to the Company. Other existing securities remain same.

FIXED ASSETS:

· Land

· Building

· Machinery

· Precision Instrument

· Pattern and Dies

· Jigs and Fixtures

· Works Equipments

· Furniture and Fittings

· Computer

· Cylindrical Grinding Machine

· Grinding Machine

· Wedge Grinding Machine

· CAD / CAM

· Office Equipments

· Electrical Installations

· Vehicles

· Goodwill

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.56.31
UK Pound	1	Rs.88.06
Euro	1	Rs.70.91

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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.