MIRA INFORM REPORT

Report Date :

07.08.2008

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 – 400069, 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 :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 1000000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. 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 info@nhball.com nhb@vsnl.com
Website :	http://www.nhbball.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. Hasmukh 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

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 30.09.2005)

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

(As on 31.03.2007)

Category	Percentage
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Steel Balls.

Products:

Item Code No.	Product Description
3769010000	Steel Balls

GENERAL INFORMATION

Customers :	North American Customers: John Erickson Tel No.:1-860-6736194 Fax No.:1-860-6730014 Email: Salesgroupofavon@aol.com Milan Ramaiya Tel No.: 1-647-2094815 Fax No.:1-905-41768789 Email: sales@can.nhbball.com
Bankers :	Dena Bank Dena Corporate Centre, Bandra-Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India ICICI Bank HDFC Bank Financial Institutions: Sundaram Finance

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
Name :	Urmil Shah Chartered Accountant
Address :	Vasaikar House 296, Cadell Road, Dadar (West), Mumbai – 400028, Maharashtra, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs.75.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7482532	Equity Shares	Rs.10/- 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	11.500	11.500
2] Share Application Money		0.000	44.619	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		194.071	146.844	83.642
2] Unsecured Loans		62.778	84.705	18.196
TOTAL BORROWING		256.849	231.549	101.838
DEFERRED TAX LIABILITIES		12.591	12.592	2.982
TOTAL		476.324	386.333	119.827
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		365.312	289.706	71.556
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		5.376	0.000	0.000
DEFERREX TAX ASSETS		0.000	5.000	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	160.073	32.935
Total Current Assets		345.771	378.153	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	91.627	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		0.000	490.575	116.601
Other Income		529.488	13.587	10.240
Total Income		529.488	504.162	126.841
Profit/(Loss) Before Tax		17.860	12.180	(8.267)
Provision for Taxation		2.584	0.000	0.000
Profit/(Loss) After Tax		15.276	12.180	(8.267)
Export Value		NA	NA	103.399
Expenditures :
	Raw Material Consumed	0.000	37.176	10.920
	Consumption of Stores and spare parts	0.000	21.863	5.031
	Increase or decrease in finished goods, work-in-progress	0.000	23.300	18.414
	Salaries, wages and bonus	39.951	29.886	7.704
	Managerial Remuneration	0.000	3.228	1.526
	Payment of Auditors	0.424	1.048	0.360
	Interest	27.248	25.630	10.065
	Insurance Expenses	0.989	0.971	0.182
	Power and Fuel	0.000	39.009	9.571
	Depreciation and amortization	20.796	16.570	7.167
	Other Expenditure	422.221	293.301	64.168
Total Expenditure		511.629	491.983	135.108

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	2.89	2.42	(6.52)
Net Profit Margin (PBT/Sales)	(%)	0.00	2.48	(7.09)
Return on Total Assets (PBT/Total Assets}	(%)	2.51	1.2	(3.92)
Return on Investment (ROI) (PBT/Networth)		0.09	0.09	(0.55)
Debt Equity Ratio (Total Liability/Networth)		2.40	3.64	12.87
Current Ratio (Current Asset/Current Liability)		1.44	1.32	1.53

LOCAL AGENCY FURTHER INFORMATION

Form 8:

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

WEBSITE DETAILS:

A HISTORY THAT SPANS 50 YEARS AND TWO CONTINENTS

About half a century ago, Mr. M. D. Mehta, the founder, was trading in parachutes and chemicals in the USA when he came across a demand for steel balls in India. Since this was an item he had never dealt with before, he advertised for a supplier in the local papers.

Two enterprising Americans approached him with a proposal to manufacture the steellballs. The duo was equipped with the knowledge and technical know-how to manufacture the balls, but no capital. Mr. Mehta, innovator at heart, decided to venture into the new product line-Steel balls.

That was just the beginning. Company grew exponentially, and in 1949, manufacturing facilities were relocated to India. Now, headquartered in Mumbai, India, NHB is a global company, with two plants in Gujarat state, about two hundred kilometers away from Mumbai.

Company is led by a dynamic team - members of second and third generation of the founder. Armed with expertise acquired in their respective fields from renowned US universities and an inherited dedication, they continue to strategically add to the company's expanding line of products.

Company is one of the manufacturers of balls in India and regular supplier to prominent companies all over the globe: USA, Canada, Europe and the Asia - Pacific region.

PROFILE:

They have earned their reputation by pursuing a single - minded objective: Unquestionable Quality. And they have gained their client's trust, by providing them with world - class service that exceeds their expectations.

To begin with they have strengthened their quality system from ISO 9002 in April 1997 to TS 16949 in December 2006. An achievement that is a direct result of keeping quality their top operating priority and aiming for zero defects.

Besides, they offer products for a diverse range of applications. Right from high precision balls for sophisticated use such as bearings, CV joints, steering and pharmaceuticals, to those than require simple tolerances as in cosmetics.They provide these in various materials including low carbon steel, chrome steel, stainless steel, brass, aluminium and other materials.

Their experienced sales and technical team work in tandem with customers, gauging their exact needs, which help in developing new products as per customer's specific requirements.

Company continuously monitor inventory and deliver on a Just-in-Time basis from their warehouse in India, as well as from various strategic locations overseas. They don't just reply to equiries in the shortest possible intervals, but also keep their delivery commitments time after time.

PRODUCTS:

FERROUS
Chrome Steel	SAE 52100	DIN 100Cr6 / B.S. En 31
Carbon Steel	SAE 1010	DIN. 1.1121
	SAE 1086	-
300 Series Stainless Steel	AISI 302	-
	AISI 304	DIN 1.4301 / B.S. 304 S 15
	AISI 304 L	DIN 1.4306 / B.S. 304 S 12
	AISI 316	DIN 1.4401 / B.S. 316 S 16
	AISI 316 L	Din 1.4404 / B.S. 316 S 12
400 Series Stainless Steel	AISI 420	DIN 1.4021 / B.S. 420 S 37
	AISI 420 B	DIN X30Cr13
	AISI 420 C	DIN 1.4016 / B.S. 430 S 15
	AISI 430 L	DIN 1.4016 / B.S. 430 S 15
	AISI 440 C	DIN 1.4125
All 300 & 400 series stainless steel balls can be supplied passivated.*

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.42.00
UK Pound	1	Rs.82.14
Euro	1	Rs.65.09

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	YES
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		66

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