MIRA INFORM REPORT

Report Date :

01.07.2013

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) :	31.03.2012
Date of Incorporation :	28.10.1959
Com. Reg. No.:	18-003951
Capital Investment / Paid-up Capital :	Rs.36.318 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 :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 1040000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having a good track record. Financially company performance seems to be strong. Trade relations are reported to be 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: BB+
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	October, 2012

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.

INFORMATION PARTED BY

Name :	Mr. Narendran Somadev
Designation :	Assistance Manager
Contact No.:	91-8754483577
Date :	28.06.2013

LOCATIONS

Registered Office/ Factory 1 :	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/ 8754483577 (Mr. Narendra Somdev)
Fax No.:	91-44-22460112/ 22460317
E-Mail :	finance@gmt.co.in gmt@gmt.co.in esales@gmt.com
Website :	http://www.gmt.co.in
Area :	3.5 acre
Location :	Owned
Factory 2:	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 :	Managing Director
Address :	Door No.47, 3^rd Main Road, Ram Nagar, Nanganallur, Chennai – 600061, Tamilnadu, India
Date of Birth/Age :	02.06.1947
Date of Appointment :	01.04.2013
DIN No.:	00186010
Name :	Mr. Jayashrre Mani Swaminathan
Designation :	Managing Director
Address :	Flat 1A, No.17, Gitanjali, Kalakshtra Road, Thiruvanniyur, Chennai – 600041, Tamilnadu, India
Date of Birth/Age :	13.04.1958
Date of Appointment :	01.04.2013
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
P. Achuthan	900
T k Ahluwalia	450
Ajit Kumar Bhattacharya	1350
Ajitkumar Kulkarni	900
Alka Atul Shah	900
L. Amalraj	2700
Amratlal Shah	450
N. Ananthakrishnan	2250
Ananthan Srinath	900
Anjana Dhaturbhuj Dingwaney	9000
Ashit P. Shah	2250
Ashok Balwani	9225
Atul P. Shah	2250
K. Annamalai	900
L. Balakrishnan	29700
Bhairavi H.Shah	36000
Bhavani Srinivasan	38475
Challagalla Sita Prasad	3150
G. Chidambar	10800
S. Chempakkam	43380
Elisheba Chacko	6375
Harshad M Shah	63000
Hemalata Krishnamurthy	13500

(AS ON 30.09.2011)

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 (30-60 days)

Purchasing :

Cash and Credit (30-60 days)

GENERAL INFORMATION

Customers :

Wholesalers and Retailers.

No. of Employees :

400 (Approximately)

Bankers :

· State Bank of India

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

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG TERM BORROWINGS
Bonds/ Debentures
- Term Loans on Fixed Assets	16.048	31.047
Term Loans on Hire Purchases	0.000	0.142
SHORT TERM BORROWINGS
Overdraft	11.638	38.427
Total	27.686	69.616

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

CAPITAL STRUCTURE

(AS ON 12.09.2012)

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
1210602	Equity Shares	Rs.10/-each	Rs.12.106 Millions
	Addition: Issue of Bonus Shares		Rs.24.212 Millions
	Total		Rs.36.318 Millions

NOTE:

(Of the above 32,00,418 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	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	36.318	12.106
(b) Reserves & Surplus	222.552	210.625
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1)+(2)	258.870	222.731
(3) Non-Current Liabilities
(a) long-term borrowings	21.048	36.189
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	21.048	36.189
(4) Current Liabilities
(a) Short term borrowings	11.638	38.427
(b) Trade payables	17.531	12.834
(c) Other current liabilities	13.163	19.900
(d) Short-term provisions	77.903	49.890
Total Current Liabilities (4)	120.235	121.051
TOTAL	400.153	379.971
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	159.292	150.940
(ii) Intangible Assets	7.751	8.564
(iii) Capital work-in-progress	28.832	19.858
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	5.594	4.572
(c) Deferred tax assets (net)	2.567	1.798
(d) Long-term Loan and Advances	7.796	14.251
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	211.832	199.983
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	81.133	73.737
(c) Trade receivables	15.218	12.100
(d) Cash and cash equivalents	28.084	53.342
(e) Short-term loans and advances	63.886	40.809
(f) Other current assets	0.000	0.000
Total Current Assets	188.321	179.988
TOTAL	400.153	379.971

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		12.106
2] Share Application Money		0.000
3] Reserves & Surplus		179.841
4] (Accumulated Losses)		0.000
NETWORTH		191.947
LOAN FUNDS
1] Secured Loans		56.857
2] Unsecured Loans		4.200
TOTAL BORROWING		61.057
DEFERRED TAX LIABILITIES		0.000
TOTAL		253.004
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		171.805
Capital work-in-progress		0.000
INVESTMENT		3.863
DEFERREX TAX ASSETS		0.060
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	53.897
	Sundry Debtors	19.814
	Cash & Bank Balances	23.805
	Other Current Assets	0.000
	Loans & Advances	83.707
Total Current Assets		181.223
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	12.330
	Other Current Liabilities	78.222
	Provisions	13.395
Total Current Liabilities		103.947
Net Current Assets		77.276
MISCELLANEOUS EXPENSES		0.000
TOTAL		253.004

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Net Revenue from Operations	496.355	405.663	228.352
		Other Income	1.833	1.972	2.315
		TOTAL (A)	498.188	407.635	230.667
Less	EXPENSES
		Cost of Materials and Tools Consumed	179.764	142.263
		Purchases of stock-in-trade	0.000	0.000
		Changes in Inventories of Finished goods, work-in-progress and stock-in-trade	(2.865)	(4.323)
		Employee Benefit Expenses	95.127	78.733
		Other Expenses	124.014	97.025
		TOTAL (B)	396.040	313.698	190.014
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		102.148	93.937	(Including Financial Expenses)
Less	FINANCIAL EXPENSES (D)		5.998	7.140
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		96.150	86.797	40.653
Less/ Add	DEPRECIATION/ AMORTISATION (F)		20.970	21.431	22.805
	PROFIT BEFORE TAX (E-F) (G)		75.180	65.366	17.848
Less	TAX (H)		26.437	22.582	4.862
	PROFIT AFTER TAX (G-H) (I)		48.743	42.784	12.986
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		38.285	12.502	11.591
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	5.000	5.000
		Dividend	NA	10.290	6.053
		Tax on Dividend	NA	1.709	1.022
		Shirt Tax provision made for the earlier years	NA	0.000	0.000
	BALANCE CARRIED TO THE B/S		NA	38.285	12.502
	Earnings Per Share (Rs.)		20.11	17.67	10.73

Particulars	31.03.2013
Sales Turnover (Approximately)	400.000
	(Due to Recession)

Expected Sales (2013-14): Rs.500.000 Millions

The above information has been parted by Mr. Mr. Narendran.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	9.78	10.50	5.63
Net Profit Margin (PBT/Sales)	(%)	15.15	16.11	7.82
Return on Total Assets (PBT/Total Assets}	(%)	20.70	18.48	5.06
Return on Investment (ROI) (PBT/Networth)		0.29	0.29	0.09
Debt Equity Ratio (Total Debt/Networth)		0.13	0.34	0.32
Current Ratio (Current Asset/Current Liability)		1.57	1.49	1.74

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
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	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
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

UNSECURED LOANS

Particulates	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG TERM BORROWINGS
De4posits (Loam from Director)	5.000	5.000
Total	5.000	5.000

WORKING RESULTS:-

The Company has achieved a turnover of Rs.496.300 Millions during the year. This represents a 22 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 appears to be far more challenging and the capital goods sector is facing serious problems in sustaining growth. The company is making every effort to evolve strategies to counter the serious slow down in the economy.

FUTURE PROSPECTS:-

The general trend and prospects of business are challenging but in the current market scenario they are working hard to ensure that their inflows of orders do not drop. The board is cautiously optimistic on the performance for the current year.

The order value pending execution as on 31.03.2012 was Rs.89.400 Millions approximately.

The quality of their products and their reputation for enduring performance with their customers in the end user sector as well as the OEMs has 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. As planned last year, two new induction furnaces have been installed in the ferrous foundry, increasing its capacity to 350 tons per month from 30 tons, and a state of the art facility has been built to manufacture CMMs.

The Chromepet plant, where lapping machines and threading inserts were manufactured and, chucks were reconditioned, has been closed and shifted to a more compact new facility in Pallikaranai, in an effort to streamline operations and improve operational efficiency.

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 Quick Thread Private Limited, and consequently the subsidiary is under process of being liquidated.

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 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 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.59.70
UK Pound	1	Rs.91.14
Euro	1	Rs.77.98

INFORMATION DETAILS

Information Gathered by :	JML
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	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.