MIRA INFORM REPORT

Report Date :

25.10.2013

IDENTIFICATION DETAILS

Name :	HITTCO TOOLS LIMITED
Registered Office :	HTC Aspire, 19, Ali Asker Road, 2^nd Floor, Bangalore – 560 052, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	04.01.1995
Com. Reg. No.:	08-016888
Capital Investment / Paid-up Capital :	Rs.57.201 millions
CIN No.: [Company Identification No.]	L28939KA1995PLC016888
TAN No.: [Tax Deduction & Collection Account No.]	BLRH00456B
PAN No.: [Permanent Account No.]	AAACH7671K
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Exporter of Cutting Tools.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (33)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 263000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred a huge loss during 2013. External borrowings seem to be increasing during the year under review. The ratings also take into consideration the modest financial profile and low networth. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct In view of long standing experience, the company can be considered 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

INDIAN ECONOMIC OVERVIEW

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

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. Alok Jyoti Sahoo
Designation :	Company Secretary
Contact No.:	91-80-40865027
Date :	16.10.2013

LOCATIONS

Registered Office/ Corporate Office :	HTC Aspire, 19, Ali Asker Road, 2^nd Floor, Bangalore – 560 052, Karnataka, India
Tel. No.:	91-80-40865027/ 40865000
Fax No.:	91-80-41491250
E-Mail :	alok@hittco.in roy@hittco.com roy@hittco.in sales@hittco.com sales@hittco.in
Website :	http://www.hittco.com
Factory 1 :	#78, III Phase, Peenya Industrial Area, Bangalore – 560 058, Karnataka, India
Tel. No.:	91-80-28392265
Fax No.:	91-80-28394049
Factory 2 :	#SB-162, 3^rd Cross, Peenya Industrial Area, Bangalore – 560 058, Karnataka, India

DIRECTORS

AS ON 31.03.2013

Name :	Mr. Surendra Bhandari
Designation :	Chairman
Name :	Mr. Sidharth Bhandari
Designation :	Managing Director
Name :	Mrs. Madhu Bhandari
Designation :	Director
Name :	Mr. K. Raghavendra Rao
Designation :	Whole-time Director
Name :	Mr. Rajib Ghosh Roy
Designation :	Whole-time Director
Name :	Mr. Joseph Mathai
Designation :	Independent Director
Name :	Mr. Rajeev G. Hassanand
Designation :	Independent Director
Name :	Mr. S.R. Satish
Designation :	Independent Director
Name :	Mr. N.K. Raghunath
Designation :	Independent Director
Name :	Mr. Vikram S. Gupta
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Alok Jyoti Sahoo
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	681576	12.26
Bodies Corporate	1690408	30.41
Any Others (Specify)	0	0.00
Sub Total	2371984	42.67
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	2371984	42.67
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	1069033	19.23
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	1003555	18.05
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	726018	13.06
Any Others (Specify)	388673	6.99
Hindu Undivided Families	15727	0.28
Non Resident Indians	372945	6.71
Clearing Members	1	0.00
Sub Total	3187279	57.33
Total Public shareholding (B)	3187279	57.33
Total (A)+(B)	5559263	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	5559263	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Cutting Tools.
Products :	HSS Tools Solid Carbide Tools CNC Tool Holders
Brand Names :	“HITTCO”
Exports :
Products :	Cutting Tools
Countries :	US Thailand Singapore
Imports :
Products :	Raw Materials
Countries :	China US Bangkok
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS [AS ON 31.03.2012]

Product Name: Drill Bits and Taps

Licensed Capacity: Not Applicable

Particulars	Installed Capacity
Drills	48,00,000 pieces
Taps	1,20,000 pieces

Particulars	Unit	Actual Production
Drill Bits and Taps	Nos.	1749651

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

200 (Approximately)

Bankers :

• HDFC Bank Limited
• IndusInd Bank Limited
• Canara Bank
• Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai, Maharashtra – 400 021, India

Facilities :

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loan with Kotak Mahindra Bank Limited Nature of Security: All the banking facilities sanctioned by the Bank are primarily secured by extension of charge over all existing and future current assets/ moveable fixed assets of the company Banking facilities are further collaterally secured by: 1. Equitable (unregistered) MOE over commercial property located at Mumbai owned by one of the group company. 2. Registered MOE over residential properties located at HTC Thakural Apartment, Bangalore owned by one of the group company. 3. Lien marking of Fixed Deposit of Rs.1.374 millions 4. Registered MOE over two residential properties located at Ganganagar, Bangalore owned by one of the group company and one of the director All the banking facilities are further personally guaranteed by two directors and by extension of corporate guarantee by a few group companies. Term of Repayment: Repayable in 60 Equated Monthly Installments beginning from the month following the month of first disbursement of Term loan(February, 2013), at the Interest of 12.90% p.a.	8.300	0.000
Vehicle Loan with Kotak Mahindra Bank Limited Nature of Security: Secured by Hypothecation of the respective vehicle on which the loan is taken. Term of Repayment: Repayable in Equated Monthly Installments beginning from the month subsequent to taking the loan.	3.594	0.000
SHORT TERM BORROWINGS
Kotak Mahindra Bank Limited - Cash Credit Account	11.082	0.000
Total	22.976	0.000

Banking Relations :	--
Statutory Auditors :
Name :	S. Janardhan and Associates Chartered Accountants
Address :	Apartment No.103 and 106, Embassy Centre, No.11, Crescent Road, Bangalore – 560 001, Karnataka, India
Tel. No.:	91-80-22265438/ 22260055/ 22202709
Fax No.:	91-80-22265572
E-Mail:	ca.sjassociates@gmail.com
Secretarial Auditors :
Name :	Swamy and Associates Company Secretaries
Address :	Bangalore, Karnataka, India
Associate Companies :	Hitech Prints (India) Private Limited Hittco Properties Private Limited HTC Precision Private Limited Indo European Machinery Company Private Limited Specialized Micro Tools Private Limited B I Holdings Bangalore Private Limited HTC Properties Private Limited Fotoset Company Private Limited B I Realtors Private Limited Hittco Realtors Private Limited
Associate Concern :	Hindustan Tools Corporation

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 millions
50000	Cumulative Convertible Preference Shares	Rs.100/- each	Rs.5.000 millions
	Total		Rs.65.000 millions

Issued Capital :

No. of Shares	Type	Value	Amount
5559263	Equity Shares	Rs.10/- each	Rs.55.593 millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
	Subscribed and fully Paid up:
5311663	Equity Shares (Fully paid up)	Rs.10/- each	Rs.53.117 millions
	Subscribed and partly Paid up:
247600	Equity Shares (Rs.5/- Partly paid up)		Rs.1.238 millions
	Forfeited Shares:
569300	Equity Shares of Rs.5/- not reissued		Rs.2.846 millions
	Total		Rs.57.201 millions

The Company has only one class of shares, referred to as equity shares, having a par value of Rs.10/-. Each holder of equity shares is entitled to one vote per share held.

The Company declares and pays dividend in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Dividend, if any, is payable to the shareholders in proportion to their shareholding.

The Company has not declared dividend during the year.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

Reconciliation of number of Shares:

Equity shares	As at 31^st March, 2013
	No. of Shares	Amount (Rs. in millions)
Balance as at the beginning of the previous year
Fully paid up (Rs.10/- each)	5033700	50.337
Partly paid up (Rs.5/- each)	247600	1.238
Add: Shares issued during the year*
Fully paid up (Rs.10/- each)	277963	2.780
Balance as at the end of the year	5559263	54.355

Details of Shares held by shareholders, holding more than 5% of the aggregate shares in the Company:

Particulars	As at 31^st March, 2013
	No. of Shares	Percentage
Fortune Loyal Hongong Limited	600000	10.79%
Surendra Bhandari	400100	7.20%
Hitech Prints India Private Limited	293600	5.28%
Hittco Properties Private Limited	352044	6.33%
B I Holdings Bangalore Private Limited	914064	16.44%

*Note: During the year 277963 equity shares of face value has been allotted on preferential basis at a price of Rs.10/- per share to B.I. Holding (Bangalore) Private Limited one amongst the promoter group.

During the year the company has allotted on preferential basis 600584 share warrants, convertible into one equity share of the company of nominal value of Rs.10/-, at a price of Rs.10/- per share.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	57.201	54.422	54.422
(b) Reserves & Surplus	2.602	9.111	0.447
(c) $share Warrants issued	6.006	0.000	0.000
(2) Share Application money pending allotment	0.000	0.450	0.450
Total Shareholders’ Funds (1) + (2)	65.809	63.983	55.319
(3) Non-Current Liabilities
(a) Long-term borrowings	38.238	31.812	0.621
(b) Deferred tax liabilities (Net)	6.895	0.000	0.000
(c) Other long term liabilities	1.720	1.270	0.000
(d) Long-term provisions	3.800	0.135	0.000
Total Non-current Liabilities (3)	50.653	33.217	0.621
(4) Current Liabilities
(a) Short term borrowings	11.082	0.000	27.052
(b) Trade payables	5.367	6.827	6.035
(c) Other current liabilities	8.251	14.930	20.913
(d) Short-term provisions	1.717	3.275	2.014
Total Current Liabilities (4)	26.417	25.032	56.014
TOTAL	142.879	122.232	111.954
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	74.235	61.122	47.070
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.156	0.000	12.677
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.001
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	12.343	12.130	10.626
(e) Other Non-current assets	3.557	0.822	0.000
Total Non-Current Assets	90.291	74.074	70.374
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	24.666	16.096	12.317
(c) Trade receivables	22.829	20.368	17.207
(d) Cash and cash equivalents	2.077	6.483	6.846
(e) Short-term loans and advances	2.786	4.945	5.210
(f) Other current assets	0.230	0.266	0.000
Total Current Assets	52.588	48.158	41.580
TOTAL	142.879	122.232	111.954

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations (Net)	83.681	86.880	79.971
		Other Income	1.504	1.028	0.715
		TOTAL (A)	85.185	87.908	80.686
Less	EXPENSES
		Cost of materials consumed	24.749	26.331	65.982
		Purchases of Stock in Trade	0.522	0.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(7.437)	(4.694)
		Employee benefits expense	22.256	20.441
		Other expenses	33.379	28.745
		Exceptional items	3.680	0.051
		TOTAL (B)	77.149	70.874	65.982
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8.036	17.034	14.704
Less	FINANCIAL EXPENSES (D)		1.842	0.847	0.630
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6.194	16.187	14.074
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.808	5.124	4.253
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		0.386	11.063	9.821
Less	TAX (H)		6.895	2.399	1.934
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(6.509)	8.664	7.887
	EARNINGS IN FOREIGN CURRENCY
		Revenue from exports on FOB basis	6.460	11.558	12.434
	TOTAL EARNINGS		6.460	11.558	12.434
	IMPORTS
		Raw Materials	13.449	10.778	NA
		Trading Items	0.414	0.000	NA
		Capital Goods	8.401	0.790	NA
	TOTAL IMPORTS		22.264	11.568	NA
	Earnings / (Loss) Per Share (Rs.)
	- Basic		(1.25)	1.68	1.53
	- Diluted		(1.12)	1.68	1.53

Expected Sales (2013-2014): Rs.87.000 millions

The above information has been parted by Mr. Alok Jyoti Sahoo Company Secretary).

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(7.64)	9.86	9.77
Net Profit Margin (PBT/Sales)	(%)	0.46	12.73	12.28
Return on Total Assets (PBT/Total Assets}	(%)	0.27	9.05	9.89
Return on Investment (ROI) (PBT/Networth)		0.01	0.17	0.18
Debt Equity Ratio (Total Debt/Networth)		0.75	0.50	0.50
Current Ratio (Current Asset/Current Liability)		1.99	1.92	0.74

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	No
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)	Yes
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	No
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	No

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10364681	21/06/2013 *	35,118,000.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227, D, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B78351723

* Date of charge modification

Unsecured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Loans from related parties:
- Directors	7.425	12.565
- Others	18.919	19.247
Total	26.344	31.812

OPERATIONS AND BUSINESS PERFORMANCE

The Company has almost maintained a turnover of Rs.83.682 millions during the year 2012-13 as against Rs.86.880 millions during the previous year 2011-12. The Export Sales for the year 2012-13 was Rs.6.460 millions compared to Rs.11.558 millions during the previous year and contributed 7.66 % of the total sales. The Company’s net loss after tax for the year 2012-13 was Rs.6.508 millions as against profit of Rs.8.664 millions in the previous year which is due to provision for deferred tax, provision for gratuity and lesser turnover. The company is competent of achieving profitability.

MANGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS

In the financial year 2012-2013 the consumption of HSS Drills and Taps in Indian Market is about Rs.20000.000 millions. Production in India by Different manufacturer is Rs.18000.000 millions. Import from other Countries like China, Taiwan and other European Countries is Rs.2000.000 millions. The HSS Drills and taps market is growing annually by 7%.

The consistent demand of HSS Drills and Taps has prompted manufactures to increase the production capacity.

OPPRTUNITIES AND THREATS

With the vast experience of cutting tool manufacturing experience Company has started production of Carbide Tools which is having a market of Rs.16500.000 millions. The major boost in Automobile market has increased the sale of Carbide tools in India. The Carbide Tool market is growing annually by 20%, which is much faster than the growth of HSS Tools. The threat perception in the country includes competition of Multi National Company’s setting up plant in India and cheap priced tools from Taiwan and China.

SEGMENT-WISE PERFORMANCE

The Company made after tax loss Rs.6.508 millions on a turnover of Rs.83.682 millions and other income of Rs.1.504 millions.

	Drill Bits and Taps
Net Sales and Operating Revenue	Rs.83.682 millions
PBIT	2.229
Capital Employed	116.463
ROCE (%)	1.91%
PBIT Margins (%)	2.67%

OUTLOOK FOR THE INDUSTRY

The domestic Drill Bits and Taps supply is going increase in the coming years. The Company has plans to increase production of Drill Bits and Taps as well as Carbide Tools. Additionally they are planning to expand their overseas marketing activities.

OUTLOOK FOR THE COMPANY

In the Company’s future strategic growth plans, the core areas include through process and product development, Waste utilization, Energy conservation, Power Consumption etc. Continuous efforts are made towards technology innovation. The Company has installed two machines in the factory for Effluent Treatment Plant purposes and constructed separate room for keeping the used cotton waste which is disposed from the factory.

UNAUDITED RESULTS FOR THE QUARTER ENDED 30^TH JUNE, 2013

(Rs. in millions)

Sl. No.	Particulars	Quarter Ended 30.06.2013
		(Un-Audited)
1	Income from operations
	(a) Net sales/income from operations (Net of excise duty)	19.822
	(b) Other operating income	--
	Total income from operations	19.822
2	Expenses
	(a) Cost of materials consumed	3.565
	(b} Purchases of stock-in-trade	--
	(c) Changes in inventories of finished goods work in progress and stock-in-trade	1.313
	(d) Employee benefit expenses	6.257
	(e) Depreciation and amortization expenses	1.821
	(f) Other expenses	7.343
	Total expenses	20.099
3	Profit/ (Loss) from operations before other income, finance costs and exceptional items (1-2)	(0.277)
4	Other income	0.113
5	Profit/ (Loss) from ordinary activities before finance costs and exceptional items (3{+/-}4)	(0.164)
6	Finance costs	0.837
7	Profit/ (Loss) from ordinary activities after finance costs but before exceptional items (5{+/-}6)	(1.001)
8	Exceptional items	--
9	Profit/ (Loss) from ordinary activities before tax (7{+/-}8)	(1.001)
10	Tax expense	0.323
11	Net profit/ (Loss) from ordinary activities after tax (9{+/-}10)	(1.324)
12	Extraordinary items (net of tax expense Rs.------- lakhs)	--
13	Net Profit/ (Loss) for the period (11{+/-} 12)	(1.324)
14	Share of profit/(loss) of associates	--
15	Minority interest	--
16	Net Profit/ (Loss) after taxes, minority interest and share of profit/(loss) associates (13+/-14+/-15)	(1.324)
17	Paid up equity share capital	--
18	Reserves excluding revaluation reserves as per Balance Sheet of previous accounting year	--
19. I	Earnings per share (before extraordinary items) not annualised
	(a) Basic	(0.24)
	(b) Diluted	(0.21)
19. II	Earnings per share (after extraordinary items) not annualised
	(a) Basic	(0.24)
	(b) Diluted	(0.21)
A	PARTICULARS OF SHAREHOLDING
1	Public shareholding
	- Number of shares	3187279
	- Percentage of shareholding	57.33
2	Promoters and Promoter Group Shareholding
	(a) Pledged / Encumbered
	- Number of shares	--
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	--
	- Percentage of shares ( as a % of the total share capital of the company)	--
	(b) Non-encumbered
	- Number of shares	2371984
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group )	100.00
	- Percentage of shares (as a % of the total share capital of the company)	42.67

Notes:

1. The above results were reviewed by the Audit committee on 1^st August, 2013 and approved by the Board of Directors at their meeting held on 2^nd August, 2013.

2. The Company is primarily engaged in the business of manufacturing and trading of cutting tools and hence segment reporting is not applicable.

3. Previous year/ period figures have been re-grouped wherever necessary.

FIXED ASSETS:

· Factory Building

· Lease Hold Improvements

· Plant and Machinery

· Office Equipments

· Furniture and Fittings

· Computers

· Vehicles

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.61.41
UK Pound	1	Rs.99.53
Euro	1	Rs.84.82

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		33

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.