MIRA INFORM REPORT

Report Date :

30.01.2008

IDENTIFICATION DETAILS

Name :	BAJAJ BEARINGS (PRIVATE) LIMITED
Registered Office :	23, Keshavji Naik Road, Chanda Ramji Building, Masjid Bunder, Mumbai-400 009, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	01.08.1996
Com. Reg. No.:	101531
CIN No.: [Company Identification No.]	U29130MH1996PTC101531
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Supplier of Bearings.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1480
Status :	Small Company
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a small trader of Ball Bearings. Trade relations are fair. No payment records are available. The company can be considered for small to mediocre business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	23, Keshavji Naik Road, Chanda Ramji Building, Masjid Bunder, Mumbai – 400 009, Maharashtra, India.
Tel. No.:	91-22-23715621/28127049
Fax No.:	91-22-23722262
E-Mail :	bajajbearings@vsnl.net bajajbearings@hotmail.com sdvhm@yahoo.com
Website :	http://www.bajajbearings.com
Factory:	77/1, Jamnagar Khambhalia Highway, At Post: Zakhar, Tal, Lalpur, Distt. Jamnagar, Saurashtra, India.
Mobile No.:	91-9821418129

DIRECTORS

Name :	Mr. Shailesh Tribhuvan Lall
Designation :	Director
Address :	101, B-7, Sector 11, Shanti Nagar, Mira Road-East, Thane-401 107, Maharastra
Date of Birth/Age :	25.07.1967
Date of Appointment :	01.08.1996
Name :	Mrs. Anita Shailesh Lall
Designation :	Director
Address :	101, B-7, Sector-11, Shanti Nagar, Mira Road-East, Thane-401 107, Maharastra
Date of Birth/Age :	20.01.1968
Date of Appointment :	01.09.1998

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders		No. of Shares
Lall Tribhuvan Shailesh		440
Lall Shailesh Anita		1560
	Total	2000
Equity Share Breakup(percentage of total equity)
Directors or relatives of directors		100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Supplier of Bearings.
Products :	Ø Taper Bearings Ø Ball Bearings Ø Cylindrical Needle Bearings Ø Spherical Clutch Bearings Ø Clutch Bearings Ø Pillow Block Bearings (UCP/UCF) Ø King Pin Bearings Ø Water Pump Bearings Ø Needle Roller Bearing
Brand Names :	‘BAJAJ’

GENERAL INFORMATION

Suppliers :	Ø Asha Industries Ø Scan Infotech Ø Shaila Sales Corporation Ø Flex Marketing Ø Utpal Engineering Company
Customers :	Ø Atish Industrial Ø Agricultural Tractor Spares Ø Far East Auto Spares Limited Ø K. P. Groups Trading Systems
No. of Employees :	6
Bankers :	Canara Bank, Mandvi Branch, Mumbai-400 003

Banking Relations :	Unknown
Auditors :
Name :	N B Vayeda and Company
Address :	Kesar Kunj, Near Jain Hotel. Kandivali-(West), Mumbai-400 067, Maharashtra

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2000	Equity Shares	Rs.100/- each	Rs.0.200 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000	Equity Shares	Rs.100/- each	Rs.0.200 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		0.200	0.200
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.170	0.164
4] (Accumulated Losses)		0.000	0.000
NETWORTH		0.370	0.364
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		0.001	0.011
TOTAL BORROWING		0.001	0.011
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		0.371	0.375
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.066	0.074
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000
	Sundry Debtors	0.701	0.996
	Cash & Bank Balances	0.036	0.032
	Other Current Assets	0.166	0.019
	Loans & Advances	0.255	0.116
Total Current Assets		1.158	1.163
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.799	0.863
	Provisions	0.054	0.000
Total Current Liabilities		0.853	0.863
Net Current Assets		0.305	0.300
MISCELLANEOUS EXPENSES		0.000	0.001
TOTAL		0.371	0.375

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2007
Total Income	3.102
Profit/(Loss) Before Tax	0.027
Provision for Taxation	--
Profit/(Loss) After Tax	0.027
Total Expenditure	3.075

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006
PAT / Total Income	(%)	0.87	NA
Net Profit Margin (PBT/Sales)	(%)	0.87	NA
Return on Total Assets (PBT/Total Assets}	(%)	2.20	NA
Return on Investment (ROI) (PBT/Networth)		0.07	NA
Debt Equity Ratio (Total Liability/Networth)		2.30	2.40
Current Ratio (Current Asset/Current Liability)		0.38	1.34

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets:

Ø Fax Machine

Ø Office Equipment

Ø Plant & Machinery

Ø Air Conditioners

Ø Computers

Form No 8

Name of the company	BAJAJ BEARINGS PRIVATE LIMITED
Presented By	Canara Bank, Mandvi Branch, Mumbai – 400 003.
1) Date and description of instrument creating the change	Hypothecation of Agreement for packing credit advance dated 05.11.2004.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.0.500 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	Hypothecation of goods and commodities viz ; Ball Taper, Roller Bearings lying or stored at the godowns and yards and premises in Mumbai or ensewhere in respect of which the company can make or effect or purport to make any deposit, hypothecation, or charge, whether the goods are in course of the Company or of the Bank. First charge over all the documents, receipts, endorsements or any other records which represent the cash incentive / duly draw back and the proceeds thereof.
4) Gist of the terms and conditions and extent and operation of the charge.	The aforesaid securities are given to secure the credit facilities of Rs.0.500 Million with a sub-limit of clean packing credit facility to the extent of Rs.0.250 Million. Interest on Packing credit at such rate as prescribed by RBI from time to time. The company agrees to procure goods / material for the purpose of which they have been granted clean packing credit advances within 21 days from the date of grant of loan. Interest 8% compounded quarterly (concessional rate of interest) for the concessional period of 90 days. In case the loan is not repaid within the period specified above interest @10.5% per annum compounded quarterly. If the company is not eligible to the entitlement declared or goods are not at all shipped or the goods having been shipped are reimported into India interest @16% per annum compounded quarterly.
5) Name and Address and description of the person entitled to the charge.	Canara Bank, Mandvi Branch, Mumbai – 400 003, India.
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

AS PER WEBSITE:

About Them

A professionally managed company, they are a reputed manufacturer and exporter of largest range of bearings including taper bearings, ball bearings, cylindrical bearings, needle roller bearings, spherical clutch bearings, pillow block (UCP/UCF), king pin, water pump bearings, automotive water pump bearings in India. They market their products i.e. automotive and industrial bearings under the brand name 'Bajaj'. They manufacture all their bearings from bearing grade steel SAE 52100 as per international standards.

With an experience of over a decade, they have accustomed the trends, needs and wants of the customers and the industry. Their commitment to excellence has taken us many miles ahead of their competitors. They have a worldwide presence and have been exporting to the international markets.

Their bearings are today being exported to 14 countries worldwide and their distributors are found in all major countries across the globe. They are poised to provide you with the highest quality service available in the industry with both time and cost efficiency.

Ball Bearings- A Journey of More Than Two Centuries

Modern ball bearings were invented by Mr. Philip Vaughan, of Carmarthen, Wales in 1794. He wanted to find a way of reducing friction in carriage wheels and so he made the axles of the carriage run on metal ball bearings. This made the wheels move more easily and the axles last longer.

But it was not until the bicycle and the motor car were invented, together with machines which could grind the metal balls precisely and accurately, that ball bearings were able to be used in large quantities.

Subject Focus On

Technological Up gradation

To remain competitive and meet customers' expectations, they lay great emphasis on the continuous up gradation of products and related technologies. They also endeavour to develop new products. This commitment to be reflected in their involvement in the development of customized products with flawless performance.

Their Mission

Their mission is directed towards providing the customer oriented products and ensuring the success and satisfaction of their business partners. Working towards their mission, they follow the axioms of total quality and continuous improvement in product features and processes.

Their Strengths

Their bearings are manufactured in the most modern plant using latest technologies and skilled workforce ensuring high quality & performance. They cater to the needs of small to big corporate all over the world. They manufacture all their bearings from bearing grade steel SAE 52100 as per international standards of quality.

Infrastructure:

Subject is manufactured in their most modern plants equipped with the modern technology and skilled workforce. They manufacture all their bearings from bearing grade steel SAE 52100 as per international standards. They are in the process of implementation of quality systems as per ISO 9002:2000 standards.

Their Market:

Subject is today exported 14 countries worldwide. They have their distributors in all the major countries that are engaged to give complete customer satisfaction by following strict delivery schedules and supply products according to the specifications demanded by the customers. The demand of their bearings have raised tremendously in the local as well overseas markets due to their adherences to strict quality standards and delivery schedules. Their bearings are in ready stock for application in major vehicles around the world viz. Mercedes, Scania, Fiat, Nissan, Bedford, Volvo, Land Rover, Toyota, Hino, Man, etc. Bearings for major tractors like Messey Fergusson, Ford 3000, 4000, 5000 series, Fordson-Ebro, International Harvesters, etc. are available in bulk to meet the urgent orders.

Their Assurance:

They assure their clients to provide the highest quality services available in the industry. Their mission is directed towards providing the customer oriented products and ensuring the success and satisfaction of their business partners. Working towards their mission, they follow the axioms of total quality and continuous improvement in product features and processes.

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.39.40
UK Pound	1	Rs.78.28
Euro	1	Rs.58.23

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	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		37

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