MIRA INFORM REPORT

Report Date :

17.12.2007

IDENTIFICATION DETAILS

Name :	NHB BALL AND ROLLER LIMITED
Registered Office :	103, Crystal Tower, 75, Gundivali Gaothan Road No. 3, Off Andheri – Kurla Road, Andheri (East), Mumbai – 400 069, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	26.10.1994
Com. Reg. No.:	11-82390
CIN No.: [Company Identification No.]	L29130MH1994PLC082390
TAN No.: [Tax Deduction & Collection Account No.]	MUMN04533E
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturers and Exporters of Steel Balls.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 560000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track records. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	103, Crystal Tower, 75, Gundivali Gaothan Road No. 3, Off Andheri – Kurla Road, Andheri (East), Mumbai – 400 069, Maharashtra, India
Tel. No.:	91-22-26832498 / 26836783 / 26836784
Fax No.:	91-22-26831765
E-Mail :	vivian@nhbball.com , nhb@vsnl.com
Website :	http://www.bhbball.com
Factory:	Plot No. 68 + 74 and 22 R to 28R, R S No. 92 part, R S No. 88 part, and R S No. 91 part, Village Antalia, Taluka – Gandevi, District – Navsari, Gujarat, India
Area:	12511 Sq. mtrs

DIRECTORS

Name :	Mr. Harsukh M. Mehta
Designation :	Whole Time Director
Address :	24-E, Mehta House, Juhu Road, Santacruz (West), Mumbai – 400 054, Maharashtra, India
Date of Birth/Age :	04.03.1928
Date of Appointment :	29.11.1996
Name :	Mr. Bhaskar M. Mehta
Designation :	Managing Director
Address :	Cozy Cottage, Adiabad Estate, A B Nair Road, Santacruz (West), Mumbai – 400 054, Maharashtra, India
Date of Birth/Age :	17.08.1934
Date of Appointment :	29.11.1996
Name :	Mrs. Sulochana H. Mehta
Designation :	Whole Time Director
Address :	24-E, Mehta House, Juhu Road, Santacruz (West), Mumbai – 400 054, Maharashtra, India
Date of Birth/Age :	22.09.1933
Date of Appointment :	29.11.1996
Name :	Mrs. Urmila B. Mehta
Designation :	Whole Time Director
Address :	Cozy Cottage, Adiabad Estate, A B Nair Road, Santacruz (West), Mumbai – 400 054, Maharashtra, India
Date of Birth/Age :	06.12.1941
Date of Appointment :	29.11.1996
Name :	Mr. Dharmesh H. Mehta
Designation :	Whole Time Director
Address :	24-E, Mehta House, Juhu Road, Santacruz (West), Mumbai – 400 054, Maharashtra, India
Date of Birth/Age :	05.06.1966
Date of Appointment :	29.11.1996
Name :	Mr. Ashish B. Mehta
Designation :	Whole Time Director
Address :	24-E, Mehta House, Juhu Road, Santacruz (West), Mumbai – 400 054, Maharashtra, India
Date of Birth/Age :	21.11.1969
Date of Appointment :	29.11.1996
Name :	Mr. Kalpesh B. Mehta
Designation :	Whole Time Director
Address :	Cozy Cottage, Adiabad Estate, A B Nair Road, Santacruz (West), Mumbai – 400 054, Maharashtra, India
Date of Birth/Age :	21.07.1971
Date of Appointment :	26.10.1994

KEY EXECUTIVES

Name :	Mr. Nimesh S. Joshi
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Hasmukh M. Mehta	22490
Mr. H M Mehta (HUF)	7500
Mrs. Sulochana H. Mehta	10
Mr. Dharmesh H. Mehta	10000
Ms. Sejal D. Mehta	7500
Ms. Hana D. Mehta	2000
Mrs. Priti Jayant Doshi	4000
Mrs. Nita Rajesh Gandhi	4000
Mr. Bhaskar M. Mehta	12500
Mr. Bhaskar Mehta (HUF)	5000
Mrs. Urmila Mehta	10000
Mr. Shish B. Mehta	7500
Mr. Kalpesh B. Mehta	7500
Mrs. Arusha Ajay Tuli	5000
Mrs. Monica A. Mehta	5000
Mrs. Suchitra K. Mehta	5000
Total	115000

Category	Percentage of Holding
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Steel Balls.

Products:

Item Code No.	Product Description
3769010000	Steel Balls

GENERAL INFORMATION

Bankers :

Bankers:

v Dena Bank

v ICICI Bank

v HDFC Bank

Financial Institutions:

v Sundaram Finance

Facilities :

Secured Loans	As on 31.03.2005 Rs. in Millions
Dena Bank (Secured against Inventory Guaranteed by Directors	6.981
Dena Bank (Secured against Assets – Guaranteed by Directors	6.395
ICICI (Secured against Car)	0.191
Dena Bank (Bill Discounting – FBP/ FBD (Secured against Inventory Guaranteed by Directors	60.075
Total	83.642

Unsecured Loans	As on 31.03.2005 Rs. in Millions
Loans from Directors and Shareholders	18.196

Banking Relations :	Satisfactory
Auditors :
Name :	Kamdar Desai and Patel Chartered Accountants
Address :	Vasaikar House, 296, Cadel Road, Near Catering College, Dadar (West), Mumbai – 400 028, Maharashtra, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs. 10.00 each	Rs. 75.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7482532	Equity Shares	Rs. 10.00 each	Rs. 74.825 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		74.825	56.119	11.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		132.059	86.073	3.506
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		206.884	142.192	15.006
LOAN FUNDS
1] Secured Loans		194.070	146.844	83.642
2] Unsecured Loans		62.778	84.705	18.196
TOTAL BORROWING		256.848	231.549	101.838
DEFERRED TAX LIABILITIES		12.592	12.592	2.982
TOTAL		476.324	386.333	119.827
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		365.312	289.707	71.556
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		5.376	5.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	104.319	102.705	59.139
	Sundry Debtors	135.877	109.026	45.260
	Cash & Bank Balances	4.270	6.349	2.218
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	101.305	160.074	32.935
Total Current Assets		345.771	378.154	139.552
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	210.525	257.357	91.282
	Provisions	29.610	29.171	0.000
Total Current Liabilities		240.135	286.528	91.282
Net Current Assets		105.636	91.626	48.271
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		476.324	386.333	119.827

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		408.401	342.179	13.201
Other Income		154.854	161.983	113.639
Total Income		563.255	504.162	126.840
Profit/(Loss) Before Tax		17.556	12.180	(8.267)
Provision for Taxation		2.584	2.321	2.549
Profit/(Loss) After Tax		14.972	9.859	(5.718)
Export Value		NA	NA	NA
Expenditures :
	Financial Charges	27.248	25.630	10.065
	Depreciation and amortization	20.796	16.570	7.167
	Change in Stock	33.767	[23.300]	18.414
	Other Expenditure	463.888	473.082	99.461
Total Expenditure		545.699	491.982	135.107

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	2.65	1.95	[4.50]
Net Profit Margin (PBT/Sales)	(%)	4.29	3.55	[62.62]
Return on Total Assets (PBT/Total Assets}	(%)	2.46	1.2	(3.92)
Return on Investment (ROI) (PBT/Networth)		0.08	0.09	(0.55)
Debt Equity Ratio (Total Liability/Networth)		2.40	3.64	12.87
Current Ratio (Current Asset/Current Liability)		1.43	1.32	1.53

LOCAL AGENCY FURTHER INFORMATION

Name of the company

NHB BALL AND ROLLER LIMITED

Presented By

Jointly and chargeholder

1) Date and description of instrument creating the change

Agreement of hypothecation (Goods, Book-debts and other Movable assts to secure multiple facilities) dated 12.04.1999

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 9.000 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

I.Stocks of raw materials, such as various size steel wire and steel balls of various sizes for cycle bearings, automobiles and other industries etc. consumable stores and spares, packing, materials, etc., both present and future now being or hereafter brought into or upon or now or jathas or other place of storage whatsoever and wheresoever in the possession or occupation of the Company

II.All the tangible movable properties and assets of the company of whatsoever nature including plant, machinery, tools and accessories, stores, spares, relating to the plant and machinery, furniture, articles, office equipments, computers and things belonging to the company and lying being at the Company’s premises/ factories at Mumbai / Billimora being movable properties and capable of passing by delivery, both present and future, whether installed or not and whether now lying loose or in cases and now being or at any time brought into or upon or at anytime in course of transit to the premises/ factories of the company in Mumbai / Billimora either by way of substitution or in addition or other place whatsoever in the possession or occupation of the company

III.All the present and future book debts, outstandings, moneys, receivables, claims, bills, rights, to or in movable properties and movable assets and which are now due, owing or payable or belonging to the company or which may at any time hereafter become due, owing, payable, or belonging to the company in the course of its business by any person, firm, company or body corporate or by Government Central or state or Indian Railways, any Government department or office or any Municipal or local or public or semi Government body or authority or any body corporate or undertaking or project whatever in the public sector.

4) Gist of the terms and conditions and extent and operation of the charge.

I. Details of credit facilities

Particulars	Rs. in Millions
Cash Credit – P C Hypothecation	8.000
Letter of Credit D A 180 days	1.000
Total	9.000

II.Security to cover principal amount together with interest, costs, charges, expenses etc.

5) Name and Address and description of the person entitled to the charge.

Dena Bank

Mumbai Main Office, Horniman Circle, Mumbai – 400 023, Maharashtra, India

6) Date and brief description of instrument modifying the charge

Memorandum of fourth modification of hypothecation agreement dated 31.12.2003

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Past Modification

1. Vide modification dated 11.06.2001 total amount secured was enhanced from Rs. 9.000 millions to Rs. 24.000 millions

2. Vide modification dated 31.12.2001 additional security provided of immovable property being Plot No. 68 + 74 and 22 R to 28R admeasuring about 12511 Sq. mtrs of the R S No. 92 part and the R S No. 88 part and R S No. 91 part situated within the limits of village Antalia, Taluka – Gandevi, District – Navsari alongwith everything attached to the land and with machineries, fixtures and fittings and erections etc. both present and future.

3. Vide modification dated 23.09.2002

i. Total amount secured was enhanced from Rs. 24.000 millions to Rs. 52.100 millions

ii. Interest at such rates as fixed by the bank from time to time

iii. Margin to be specified by the bank from time to time

iv. Bank to have power of entry, power to appoint receiver, power of sale, etc.

v. Individual limits within the aggregates amount secured to be decided between the company and bank from time to time.

vi. Facilities now available at Industrial Finance Branch, Cuffe Parade, Mumbai

vii. The Term Loan to be repaid within 39 months with a moratorium of 3 months from the date of last disbursement in equal monthly installments of Rs. 0.400 million each.

4. Vide modification dated 27.11.2002 security over immovable property was extended upto Rs. 52.100 millions.

5. Vide modification dated 04.11.2003

i. Total amount secured was enhanced from Rs. 521.100 millions to Rs. 86.000 millions

ii. Property charged included National Header 141, National Header 81 and National Header 51 acquired / to be acquired by the company.

6. Vide modification dated 03.12.2003 security over immovable property was extended upto Rs. 86.000 millions

Present Modification:

Total amount secured now stands enhanced from Rs. 86.000 millions to Rs. 197.500 millions comprising the following limits

Facility	Rs. in Millions
Cash credit Hypothecation	8.000
Packing Credit hypothecation cum FBP / FBD / advance against collection bill (I)	19.500
Packing credit Hypothecation cum FBP / FBP/ advance (II)	65.500
Term Loan (I)	14.500
Sub limit for L/C for capital goods	(11.100)
Term Loan (II)	30.000
Sub limit for L/C for capital goods	(25.700)
Letter of Credit (Raw Material) (I)	14.000
Letter of credit (Raw Material) (II)	46.000
Total	197.500

Corporate identity number (CIN) Foreign company registration number	L29130MH1994PLC082390
Name of the Company	NHB BALL AND ROLLER LIMITED
Address	103, Crystal Tower, 75, Gundivali Gaothan Road No. 3, Off Andheri – Kurla Road, Andheri (East), Mumbai – 400 069, Maharashtra, India
This form is for	Creation of charge
Type of Charge	Equitable mortgage or mortgage of property by depositing the title deeds
Particulars of the charge holder	HDFC Bank Limited HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India CIN No.: L65920MH1994PLC080618 E-mail: siva.subramanian@hdfcbank.com
Nature or description of the instrument(s) creating or modifying the charge	Memorandum Recording Past Transaction of creation of Mortgage By deposit of title Deeds.
Date of the instrument creating or modifying the charge	02.06.2006
Amount secured by the charge	Rs. 7.380 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	1) The Bank is Entitled to charge Interest at such other Rate as may be Determined by the Bank from time to time 2) The mortgage / charge shall continue to subsist till such time all the borrower dues have been repaid in full together with interest, liquidated damages, costs, charges and expenses and all other monies whatsoever dues.
Short particulars of the property charged (including location of the property)	Mortgage by deposit of title deeds in favour of the bank as security on: Flat No. 102 and 104, Crystal Tower, Gandivali Village, Andheri Kurla Road, Andheri (East), Mumbai

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. 39.35
UK Pound	1	Rs. 80.36
Euro	1	Rs. 57.62

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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