MIRA INFORM REPORT

Report Date :

13.02.2012

IDENTIFICATION DETAILS

Name :	NTN NEI MANUFACTURING INDIA PRIVATE LIMITED (w.e.f. 16.01.2009)
Formerly Known As :	NTN MANUFACTURING INDIA PRIVATE LIMITED
Registered Office :	805, international Trade tower, Nehru Place, New Delhi – 110 019
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.09.2005
Com. Reg. No.:	55-140968
Capital Investment / Paid-up Capital :	Rs.1275.000 Millions
CIN No.: [Company Identification No.]	u34300DL2005PTC140968
TAN No.: [Tax Deduction & Collection Account No.]	deln07430d
PAN No.: [Permanent Account No.]	aaccn2241b
Legal Form :	Private Limited Liability Company
Line of Business :	manufacturers of Automobiles, Electric Equipment, and Parts
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 3300000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	805, international Trade tower, Nehru Place, New Delhi – 110 019
Tel. No.:	91-11-41513235 / 41513237
Fax No.:	91-11-41513236
E-Mail :	ag_ajaygarg@yahoo.co.in pcnayak@ntnindia.in
Website :	http://www.ntn.co.jp
Factory 1 :	Plot No. 131, Sector 7, HSIDC Growth Centre, Bawal, District Rewari, Haryana, India
Tel. No.:	91-1284-264024 / 264188-92 / 264019 – 20
Fax No.:	91-1284-264011 / 264049
Factory 2 :	Plot No. P48/1, Domestic Tariff Area, Mahindra World City, Chengelpet Taluk, Kancheepuram, Chennai - 603 002Tamil Nadu, India

DIRECTORS

As on 29.09.2011

Name :	Mr. Rohit Saboo
Designation :	Director
Address :	14A, Sangram Colony, C Scheme, Jaipur, Rajasthan, India
Date of Birth/Age :	01.02.1967
Date of Appointment :	25.08.2008
DIN No.:	00086846

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U31300RJ1988PTC004446	Venkateswara Wires Private Limited	Director	16-05-88	16-05-88	-	Active	NO
2	U14101RJ1992PTC006940	Mls Exports And Trading Private Limited	Director	08-09-92	08-09-92	-	Active	NO
3	U74899DL1961PLC003394	Indian Rockwool Company Limited	Director	18-12-00	18-12-00	17-08-07	Active	NO
4	U31300RJ2004PTC019802	Royal Con-Cab Private Limited	Director	24-11-04	24-11-04	-	Active	NO
5	U51101RJ1948PLC000752	Universal Trading Company Limited	Director	20-07-09	17-06-08	-	Active	NO
6	U67120RJ1943PTC000137	Jaipur Finance and Diary Products Private Limited	Director	04-08-08	04-08-08	-	Active	NO
7	U34300DL2005PTC140968	NTN NEI Manufacturing India Private Limited	Director	25-08-08	25-08-08	-	Active	NO
8	U14219RJ1949PLC000700	Rajasthan Industries Limited.	Director	20-07-09	05-09-08	-	Active	NO
9	U72900DL2010PLC197773	Birla Soft Limited	Director	07-01-10	07-01-10	-	Active	NO

Name :	Mr. Yutaka Tanigaki
Designation :	Director
Address :	Flat No.505, Ivory Court – I, Essel Tower, Gurgaon – 122001, Haryana, India
Date of Birth/Age :	31.10.1957
Date of Appointment :	24.04.2009
DIN No.:	02624716

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U34300DL2005PTC140968	NTN NEI Manufacturing India Private Limited	Director	15-09-09	24-04-09	-	Active	NO
2	U35900TN2011FTC083805	NTN Bearing India Private Limited	Director	29-12-11	29-12-11	-	Active	NO

Name :	Mr. Yukiyoshi Hagimoto
Designation :	Additional director
Address :	Kantary Bay Hotel and Services Apartments, 17-2 17-3 Jerm Jorpon, Sriracha Chonburi – 020110, Thailand
Date of Birth/Age :	23.02.1952
Date of Appointment :	17.02.2011
DIN No.:	03404495

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U34300DL2005PTC140968	NTN NEI Manufacturing India Private Limited	Director	29-09-11	17-02-11	-	Active	NO
2	U35900TN2011FTC083805	NTN Bearing India Private Limited	Director	29-12-11	29-12-11	-	Active	NO

Name :	Mr. Noboru Miyauchi
Designation :	Additional director
Address :	M 2906, Ashiana Aangan, Bhiwadi, Alwar – 301019, Rajasthan, India
Date of Birth/Age :	07.01.1959
Date of Appointment :	01.04.2011
DIN No.:	03474746

Name :	Mr. Hiroyuki Haruki
Designation :	Director
Address :	10-3, 1-Chome Yamatehiagashi, Kyotonabe Shi, Kyto Fu – 6011357, Japan
Date of Birth/Age :	22.11.1958
Date of Appointment :	20.01.2010
Date Cessation :	23.11.2011
DIN No.:	02891516

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U34300DL2005PTC140968	NTN NEI Manufacturing India Private Limited	Director	20-09-10	20-01-10	23-11-11	Active	NO

KEY EXECUTIVES

Name :	Mr. Pravash Chandra Nayak
Designation :	Secretary
Address :	QN-1743, Lodhi Road Complex, New Delhi – 110003, India
Date of Birth/Age :	02.01.1969
Date of Appointment :	21.04.2008
PAN No.:	ADEPN0998D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
NTN Corporation Japan	1749950
NTN Bearing, Singapore	50
National Engineering Industries Limited, India	125000
Total	1875000

As on 29.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	93.33
Other top fifty shareholders	6.67
Total	100.00

BUSINESS DETAILS

Line of Business :

manufacturers of Automobiles, Electric Equipment, and Parts

Products :

Product Description	Item Code (ITC Code No.)
Constant Velocity Joint	87085000

GENERAL INFORMATION

No. of Employees :

Not available

Bankers :

Not Available

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Vehicle Loan (Secured by hypothecation of specified vehicle acquired out of proceeds of Loan)	0.066	0.216
Total	0.066	0.216
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
External Commercial Borrowings (Amount payable within one year Rs.68.999 Millions (Previous year Rs.68.847 Millions)	500.086	273.587
Total	500.086	273.587

Notes:

- From Bank of Tokyo-Mitubishi UFJ Limited, Japan

- Loans are against gurantee given by NTN Corporation, Japan

Banking Relations :	--
Auditors :
Name :	S. V. Ghatalia and Associates Chartered Accountants
Address :	Golf View Corporate Tower – B, Sector – 42, Sector Road, Gurgaon – 122 002, Haryana, India
Tel. No.:	91-124-4644000
Fax No.:	91-124-4644050
Holding Company :	NTN Corporation, Japan

CAPITAL STRUCTURE

As on 29.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1875000	Equity Shares	Rs.1000/- each	Rs.1875.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1875000	Equity Shares	Rs.1000/- each	Rs.1875.000 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1275000	Equity Shares	Rs.1000/- each	Rs.1275.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1275000	Equity Shares	Rs.1000/- each	Rs.1275.000 Millions

Notes:

Of the above

- 1149950 Equity Shares(Previous year 799950) of Rs.1000/- each held by NTN Corporation, Japan

- 125000 Equity Shares (Previous year 12000) of Rs.1000/- each held by National Engineering Industries Limited

- 50 Equity Shares (previous year 50) of Rs.1000/- each held by NTN Bearing Singapore (pte.) Limited

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		1275.000	925.000	925.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(446.921)	(301.771)	(501.219)
NETWORTH		828.079	623.229	423.781
LOAN FUNDS
1] Secured Loans		0.066	0.216	0.354
2] Unsecured Loans		500.086	273.587	338.194
TOTAL BORROWING		500.152	273.803	338.548
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1328.231	897.032	762.329
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		859.756	649.526	477.622
Capital work-in-progress		223.858	23.111	2.375
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	197.470	116.521	97.329
	Sundry Debtors	104.967	29.383	34.891
	Cash & Bank Balances	102.065	78.104	94.210
	Other Current Assets	0.034	0.005	2.375
	Loans & Advances	193.085	138.482	127.344
Total Current Assets		597.621	362.495	356.149
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	330.131	124.447	68.156
	Other Current Liabilities	15.379	11.078	4.426
	Provisions	7.494	2.575	1.235
Total Current Liabilities		353.004	138.100	73.817
Net Current Assets		244.617	224.395	282.332
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1328.231	897.032	762.329

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	842.053	531.870	175.379
		Other Income	5.761	57.276	8.150
		TOTAL (A)	847.814	589.146	183.529
Less	EXPENSES
		Purchase of Trading goods		12.651	0.000
		Raw Material Consumed		414.532	151.218
		Personnel Expenses		44.897	35.811
		Operating and Other Expenses		86.184	153.042
		Impairment Loss / (Reversal)		(205.468)	205.469
		(Increase) / Decrease in stock	(37.222)	(15.033)	(19.640)
		TOTAL (B)	992.964 (Including Deprecation and Financial Expenses)	337.763	525.900
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			251.383	(342.371)
Less	FINANCIAL EXPENSES (D)			3.973	13.047
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			247.410	(355.418)
Less/ Add	DEPRECIATION/ AMORTISATION (F)			47.963	32.749
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(145.150)	199.447	(388.167)
Less	TAX (H)		0.000	0.000	0.480
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(145.150)	199.447	(388.647)
Less	Prior Period Items		0.000	0.000	0.016
			(145.150)	199.447	(388.663)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(301.771)	(501.218)	(112.555)
	BALANCE CARRIED TO THE B/S		(446.923)	(301.771)	(501.218)
	Earnings / (Loss) Per Share (Rs.)			215.62	(558.68)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	17.12	33.85	(211.76)
Net Profit Margin (PBT/Sales)	(%)	(17.24)	37.50	(221.33)
Return on Total Assets (PBT/Total Assets}	(%)	(9.96)	19.71	(46.56)
Return on Investment (ROI) (PBT/Networth)		(0.17)	0.32	(0.92)
Debt Equity Ratio (Total Liability/Networth)		1.03	0.66	0.97
Current Ratio (Current Asset/Current Liability)		1.69	2.62	4.82

LOCAL AGENCY FURTHER INFORMATION

Operations:

The company has started production of constant velocity joint for new models of Maruti cars and the company has achieved gross turnover of Rs.913.945 Millions during the financial year 2010-2011. It has also started to supply to other car manufacturer like GM, Nissan and Toyota. Their company has also started manufacturing activities of AU Bearing for Nissan. The directors are hopeful of getting more orders during the current financial year and there will be increase in turnover during the year as compared to earlier years.

Fixed assets:

· Land – Freehold

· Building

· Plant and Machinery

· Computer

· Office Equipments

· Tools and Spares

· Furniture and Fixtures

· Vehicles

· Computer Software

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.49.64
UK Pound	1	Rs.78.35
Euro	1	Rs.65.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		26

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.