MIRA INFORM REPORT

Report Date :

05.11.2012

IDENTIFICATION DETAILS

Name :	RANE NSK STEERING SYSTEMS LIMITED [w.e.f. 27.06.1997]
Formerly Known As :	RANE STEERING COLUMNS LIMITED
Registered Office :	‘Maithri’, 132, Cathedral Road, Madras – 600086, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	22.03.1995
Com. Reg. No.:	18-030621
Capital Investment / Paid-up Capital :	Rs.179.000 Millions
CIN No.: [Company Identification No.]	U29141TN1995PLC030621
TAN No.: [Tax Deduction & Collection Account No.]	CHER02634C
PAN No.: [Permanent Account No.]	AAACR4738F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Energy Absorbing Steering Columns.
No. of Employees :	300 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 1200000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a joint venture between NSK Limited, Japan and Rane Holdings Limited, India. It is an established company having moderate track record. The financial detail is missing form government department. And from the previous year record their appears some accumulated loss. However, trade relations are reported to be fair. Business is active. Payments are unknown. The company can be considered for business dealings with some caution.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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 is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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.

LOCATIONS

Registered Office :	‘Maithri’, 132, Cathdral Road, Madras, Chennai – 600086, Tamilnadu, India
Tel. No.:	91-44-28112472
Fax No.:	91-44-28112449
E-Mail :	c.siva@rane.co.in
Website :	http://www.rane.co.in
Corporate Office :	Plot No. 28A, Sector – 6, HSIDC Growth Center, Bawal – 123501, Haryana, India
Factory :	LOCATED AT: · Uttarakhand · Bawal · Chennai

DIRECTORS

AS ON 27.07.2012

Name :

Mr. Lakshman Lakshminarayan

Designation :

Nominee Director

Address :

06, Crescent Street, Off Arch Bishop, Mathias Avenue, Chennai – 600028, Tamilnadu

Date of Birth/Age :

17.07.1946

Qualification :

BE, Executive MBA, London Business School

Date of Appointment :

22.03.1995

Din No.:

00012554

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L35999TN1964PLC005276	RANE BRAKE LININGS LIMITED	Managing director	27/12/1975	27/12/1975	Amalgamated	NO
2	L35999TN1936PLC002202	RANE HOLDINGS LIMITED	Managing director	1/4/2011	12/11/1976	Active	NO
3	L33129TZ1972PLC000641	PRICOL LIMITED	Director	24/03/1982	24/03/1982	Active	NO
4	U35999TN1987PLC014600	RANE TRW STEERING SYSTEMS LIMITED	Nominee director	3/7/1987	3/7/1987	Active	NO
5	L34103TN1967PLC005539	RANE ENGINE VALVES LIMITED	Director	10/4/1989	10/4/1989	Amalgamated	NO
6	U51909DL1991PLC042645	JMA RANE MARKETING LIMITED	Director	17/01/1991	17/01/1991	Active	NO
7	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Nominee director	22/03/1995	22/03/1995	Active	NO
8	L74999TN1972PLC006127	RANE ENGINE VALVE LIMITED	Director	25/06/1997	25/06/1997	Active	NO
9	L85110TN1936PLC071646	KAR MOBILES LIMITED	Director	30/07/1999	30/07/1999	Active	NO
10	U65993TN1982PLC009748	RANE INVESTMENTS LIMITED	Director	14/03/2002	14/03/2002	Amalgamated	NO
11	L65993TN2004PLC052856	RANE (MADRAS) LIMITED	Director	31/03/2004	31/03/2004	Active	NO
12	L63011TN2004PLC054948	RANE BRAKE LINING LIMITED	Director	22/07/2008	18/06/2007	Active	NO
13	L34102PN1958PLC011172	FORCE MOTORS LIMITED	Director	29/09/2007	29/09/2007	Active	NO
14	U74999DL1990PLC041398	DCM ENGINEERING LIMITED	Director	5/9/2008	5/9/2008	Active	NO
15	L28932PN1990PLC016314	AUTOMOTIVE STAMPINGS AND ASSEMBLIES LIMITED	Director	16/07/2010	28/04/2010	Active	NO
16	U34100MH1995PLC093733	TATA AUTOCOMP SYSTEMS LIMITED	Director	9/9/2011	9/12/2010	Active	NO
17	L18101DL1970PLC005197	SRF LIMITED	Additional director	11/11/2011	11/11/2011	Active	NO

Name :

Mr. Ganesh Lakshminarayan

Designation :

Nominee Director

Address :

Door No.5A, Valloammaichi Road, Kotturpuram, Chennai – 600085, Tamilnadu

Date of Birth/Age :

18.03.1954

Qualification :

B. Com, ACA, MBA

Date of Appointment :

22.03.1995

Din No.:

00012583

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L35999TN1936PLC002202	RANE HOLDINGS LIMITED	Managing director	01/4/2011	26/06/1986	Active	NO
2	L35999TN1964PLC005276	RANE BRAKE LININGS LIMITED	Director	26/09/1986	26/09/1986	Amalgamated	NO
3	U35999TN1987PLC014600	RANE TRW STEERING SYSTEMS LIMITED	Nominee director	3/7/1987	3/7/1987	Active	NO
4	L34103TN1967PLC005539	RANE ENGINE VALVES LIMITED	Managing director	10/4/1989	10/4/1989	Amalgamated	NO
5	L85110TN1936PLC071646	KAR MOBILES LIMITED	Director	6/1/1994	6/1/1994	Active	NO
6	L92490TN1983PLC009903	EIH ASSOCIATED HOTELS LIMITED	Director	23/03/1994	23/03/1994	Active	NO
7	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Nominee director	22/03/1995	22/03/1995	Active	NO
8	U65993TN1982PLC009748	RANE INVESTMENTS LIMITED	Director	26/06/1995	26/06/1995	Amalgamated	NO
9	U51909DL1991PLC042645	JMA RANE MARKETING LIMITED	Director	26/04/1997	26/04/1997	Active	NO
10	L74999TN1972PLC006127	RANE ENGINE VALVE LIMITED	Managing director	1/4/2011	29/03/1999	Active	NO
11	L65993TN2004PLC052856	RANE (MADRAS) LIMITED	Director	31/03/2004	31/03/2004	Active	NO
12	U27104TN1996PLC060251	RANE DIECAST LIMITED	Nominee director	17/08/2005	17/08/2005	Active	NO
13	L63011TN2004PLC054948	RANE BRAKE LINING LIMITED	Director	22/07/2008	18/06/2007	Active	NO
14	L55101WB1949PLC017981	EIH LIMITED	Director	30/01/2008	30/01/2008	Active	NO
15	U72900KA2007PTC044415	SASMOS HET TECHNOLOGIES PRIVATE LIMITED	Additional director	3/11/2011	3/11/2011	Active	NO

Name :

Mr. Harish Lakshman

Designation :

Nominee Director

Address :

G-B, #11, 2^nd Street, Prithvi Avenue, Chennai – 600018, Tamilnadu

Date of Birth/Age :

12.02.1974

Qualification :

BE, MSM (Purdue University, USA)

Date of Appointment :

01.01.2002

Din No.:

00012602

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Nominee director	1/1/2002	1/1/2002	Active	NO
2	U65993TN1982PLC009748	RANE INVESTMENTS LIMITED	Director	15/09/2003	15/09/2003	Amalgamated	NO
3	U51909DL1991PLC042645	JMA RANE MARKETING LIMITED	Director	2/12/2003	2/12/2003	Active	NO
4	L65993TN2004PLC052856	RANE (MADRAS) LIMITED	Director	31/03/2004	31/03/2004	Active	NO
5	L35999TN1936PLC002202	RANE HOLDINGS LIMITED	Director	19/05/2004	19/05/2004	Active	NO
6	U27104TN1996PLC060251	RANE DIECAST LIMITED	Nominee director	17/08/2005	17/08/2005	Active	NO
7	U35999TN1987PLC014600	RANE TRW STEERING SYSTEMS LIMITED	Managing director	1/6/2009	1/6/2006	Active	NO
8	U99999DL1959PLC176013	AUTOMOTIVE COMPONENT MANUFACTURERS ASSOCIATION OF INDIA	Director	8/9/2006	8/9/2006	Active	NO
9	U40101TN2008PTC067780	SAVITHUR ENTERPRISES PRIVATE LIMITED	Director	16/05/2008	16/05/2008	Active	NO
10	L63011TN2004PLC054948	RANE BRAKE LINING LIMITED	Director	20/07/2009	22/07/2008	Active	NO
11	L74999TN1972PLC006127	RANE ENGINE VALVE LIMITED	Director	22/07/2009	23/07/2008	Active	NO
12	U85191KA2008PTC048722	BROADVISION SERVICES PRIVATE LIMITED	Director	29/12/2008	29/12/2008	Active	NO
13	U74900KA2008PTC048723	BROADVISION PERSPECTIVES INDIA PRIVATE LIMITED	Director	29/12/2008	29/12/2008	Active	NO
14	U70101TN2010PTC074727	HL HILL STATION PROPERTIES PRIVATE LIMITED	Director	26/02/2010	26/02/2010	Active	NO
15	U85320TN1999NPL041989	YOUNG PRESIDENTS ORGANISATION (CHENNAI CHAPTER)	Director	30/09/2011	14/09/2011	Active	NO
16	U72900KA2007PTC044415	SASMOS HET TECHNOLOGIES PRIVATE LIMITED	Additional director	3/11/2011	3/11/2011	Active	NO

Name :

Mr. Norbert Werner Schneider

Designation :

Director

Address :

Fribolinstr, 38, Bietigheim Bissingen, Germany

Date of Birth/Age :

03.03.1954

Qualification :

Graduate

Date of Appointment :

20.03.2009

Din No.:

02586745

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Director	17/07/2009	20/03/2009	Active	NO

Name :

Mr. Tsutomu Komori

Designation :

Nominee Director

Address :

878-6, Hiramatsucho, Ustunomiya - 3210931

Date of Birth/Age :

17.12.1951

Qualification :

Graduate

Date of Appointment :

23.07.2010

Din No.:

02799703

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U29130TN2007PTC064307	NSK INDIA SALES COMPANY PRIVATE LIMITED	Director	29/09/2010	21/10/2009	Active	NO
2	U29130TN2006PLC059088	NSK-ABC BEARINGS LIMITED	Director	22/07/2010	22/10/2009	Active	NO
3	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Director	18/07/2011	23/07/2010	Active	NO

Name :

Lakshminarayanan Natarajan

Designation :

Director

Address :

34, Fourth Trust Cross Street, Mandavelli, Chennai-600028, Tamilnadu, India

Date of Birth/Age :

25.10.1964

Date of Appointment :

20.10.2011

Din No.:

00008692

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29130TN2006PLC059088	NSK-ABC BEARINGS LIMITED	Director	02/03/2006	02/03/2006	Active	NO
2	U29130TN2007PTC064307	NSK INDIA SALES COMPANY PRIVATE LIMITED	Additional director	30/09/2011	30/09/2011	Active	NO
3	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Director	27/07/2012	20/10/2011	Active	NO

Name :

Ichii Akitoshi

Designation :

Director

Address :

MLS Apartments, 9 (NEWNO), Dr. B. Narasimhan Road, 2^nd Street, T. Nagar, Chennai-600017, Tamilnadu, India

Date of Birth/Age :

08.05.1963

Date of Appointment :

27.07.2012

Din No.:

05336693

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29130TN2006PLC059088	NSK-ABC BEARINGS LIMITED	Additional director	27/06/2012	27/06/2012	Active	NO
2	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Additional director	27/07/2012	27/07/2012	Active	NO

KEY EXECUTIVES

Name :	Rajasekaran Alagarsamy
Designation :	Manager
Address :	Siva No. 6, Old No. 19, Sivakamipuram, First Cross Street, Thiruvanmiyur, Chennai-600042, Tamilnadu, India
Date of Birth/Age :	15.07.1969
Date of Appointment :	01.05.2012
Pan No.:	AARPR8440E
Name :	Rajeswari Nachiappan
Designation :	Secretary
Address :	13/7, Nellaiappar Street, Bharathipuram, Chromepet, Chennai-600044, Tamilnadu, India
Date of Birth/Age :	27.01.1987
Date of Appointment :	21.10.2009
Pan No.:	AIDPN0185A

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.07.2012

Names of Shareholders	No. of Shares
NSK Limited, Tokyo, Japan	9129000
Lakshman Lakshminarayan	1
Ganesh Lakshminarayan	1
Harish Lakshman	1
S. K. Chandrasekaran	1
N. Krishnamoorthy	1
Rane Holdings Limited, India	8770995
TOTAL	17900000

AS ON 27.07.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	51.00
Bodies corporate	49.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Energy Absorbing Steering Columns.

Products :

· Electric Power Steering

· Solid Steering Columns

· Energy Absorbing and Collapsible columns

· Tilt and Telescopic Steering Columns

· Intermediate Shafts

· Universal Joint Assemblies

Item code (ITC Code)	Product Description
8708.94.00	Steering Columns

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity	Actual Production
Steering Columns	Nos.	1500000	1142993

GENERAL INFORMATION

No. of Employees :

300 [Approximately]

Bankers :

· The Bank of Tokyo – Mitsubishi UFJ Limited, Venkatramana Centre, 6^th Floor, 563/2, Anna Salai Teynampet, Chennai-600018, Tamilnadu, India

· Mizuho Corporate Bank, Maker Chambers III, 1^st Floor, Nariman Point, Mumbai-400021, Maharashtra, India

· Standard Chartered Bank

· Citi Bank

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Term Loan	0.000	85.000
TOTAL	0.000	85.000
Unsecured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Working Capital Loans	448.383	42.736
Deferred Sales Tax Loan	0.000	2.230
TOTAL	448.383	44.966

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountant
Address :	32, Khader Nawaz Khan Road, Nungambakkam, Chennai – 600006, Tamilnadu, India
PAN No:	AAEFP5579P
Joint Venture :	· NSK Limited, Japan PAN No.:AABCN7699G · Rane Holdings Limited, India PAN No.:AABCR5136J
Other Related Parties :	· SIAM NSK Steering Systems Company Limited · Changshu NSK Needle Bearing Company Limited · NSK Korea Limited · NSK-Chugai Limited · NSK Corporation · NSK (Singapore) Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Shares	Rs.10/- each	Rs.180.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17900000	Equity Shares	Rs.10/- each	Rs.179.000 Millions

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		179.000	179.000	179.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		171.720	178.566	171.000
4] (Accumulated Losses)		(49.646)	0.000	(55.891)
NETWORTH		301.074	357.566	294.109
LOAN FUNDS
1] Secured Loans		0.000	85.000	147.667
2] Unsecured Loans		448.383	44.966	90.695
TOTAL BORROWING		448.383	129.966	238.362
DEFERRED TAX LIABILITIES		0.000	0.000	0.910
TOTAL		749.457	487.532	533.381
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		511.110	487.066	514.137
Capital work-in-progress		330.624	21.184	3.065
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	23.231	42.054
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	219.957	151.144	136.632
	Sundry Debtors	166.277	138.562	138.041
	Cash & Bank Balances	26.286	10.278	14.272
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	198.165	120.270	74.302
Total Current Assets		610.685	420.254	363.247
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	657.663	430.756	311.745
	Other Current Liabilities	25.753	16.786	66.921
	Provisions	19.546	16.661	10.456
Total Current Liabilities		702.962	464.203	389.122
Net Current Assets		(92.277)	(43.949)	(25.875)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		749.457	487.532	533.381

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1758.603	1634.893	777.482
		Other Income	29.363	26.170	10.647
		TOTAL (A)	1787.966	1661.063	788.129
Less	EXPENSES
		Consumption Materials Changes Inventories	1310.126	1207.272	542.887
		Manufacturing Services Cost	75.973	63.178	0.000
		Employee Cost	160.991	122.182	86.715
		Other Manufacturing, Administrative and Selling Expenses	192.528	109.996	115.896
		Research Development Expenditure	4.769	5.142	0.000
		TOTAL (B)	1744.387	1507.770	745.498
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		43.579	153.293	42.631
Less	FINANCIAL EXPENSES (D)		15.763	15.314	17.168
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		27.816	137.979	25.463
Less/ Add	DEPRECIATION/ AMORTISATION (F)		60.982	56.514	42.492
	PROFIT BEFORE TAX (E-F) (G)		(33.166)	81.465	(17.029)
Less	TAX (H)		23.231	18.823	(22.294)
	PROFIT AFTER TAX (G-H) (I)		(56.397)	62.642	5.265
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6.751	(55.891)	(61.156)
	BALANCE CARRIED TO THE B/S		(49.646)	6.751	(55.891)
	IMPORTS
		Raw Materials and Components	313.2801	651.826	294.246
		Stores & Spare Parts	3.785	4.258	3.980
		Capital Goods	213.798	1.534	63.649
		Others	0.000	0.000	0.000
	TOTAL IMPORTS		530.8631	657.618	361.875
	Earnings Per Share (Rs.)		(3.15)	3.50	0.29

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(3.15)	3.77	0.67
Net Profit Margin (PBT/Sales)	(%)	(1.89)	4.98	(2.19)
Return on Total Assets (PBT/Total Assets}	(%)	(2.96)	8.98	(1.94)
Return on Investment (ROI) (PBT/Networth)		(0.07)	0.23	(0.06)
Debt Equity Ratio (Total Liability/Networth)		2.40	1.67	2.13
Current Ratio (Current Asset/Current Liability)		0.87	0.91	0.93

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

MANAGEMENT DISCUSSION AND ANALYSIS:

INDUSTRY STRUCTURE, DEVELOPMENTS AND SEGMENT WISE PERFORMANCE:

The domestic market continued with the robust growth across all the segments. The automotive sector has emerged stronger from the recent global downturn and sales across segments have set new in the recent past. The strong growth called for ramping up capacity across all segments and also from all the suppliers. The emphasis on capacity increase and improvement of delivery continued throughout the year.

OPERATIONAL AND FINANCIAL PERFORMANCE:

Sales and Operating revenue grew by 8% compared to 102% in the previous year. While Manual Steering Columns (MSC) business grew by 32%, Electric Power Steering (EPS) business declined by 17% due to drop in the export volumes of “A Star”.

The operating loss for the year under review was Rs.33.17 Million against an operating profit of Rs.81 Million in the previous year. One of the major causes for these losses, apart from the loss of contribution on account of reduced EPS sales, was on account of incurrence of premium freight primarily due to inability of our suppliers to supply child parts on time. Another contributing factor was the lag in implementation of cost savings projects due to delay in obtaining Customer approval.

Commodity prices and foreign exchange continued to be volatile which as in previous years was compensated adequately by the customers.

OUTLOOK:

The domestic Vehicle Industry is expected to continue its growth in the coming years in view of steady growth rate of our GDP, rising number of middle class and higher disposable income. With a favourable forecast of the monsoon, Farm Tractors Segment is likely to continue its growth and will be closely monitored by your company for timely ramping up of Capacity.

However, prices of commodities like steel and aluminium have already hardened and are likely have an impact on all commodity prices. The increase in interest rates could cause an adverse impact on the demand for vehicles.

Focus on Capacity Utilisation, optimal cost structure, quality and productivity, improving supply chain and quality levels are the key to sustain and improve performance.

FIXED ASSETS

Tangible Assets:

• Land Freehold
• Land Leasehold
• Building
• Plant and Machinery
• Office Equipment
• Furniture and Fittings
• Vehicles

Intangible Assets:

• Software License
• Technical Know how

AS PER WEBSITE DETAILS

PROFILE

· Incepted in 1995

· Joint venture agreement with NSK, Japan to establish Rane NSK Steering Systems Limited (RNSSL).

· Manufactures comprehensive wide range of Energy Absorbing Steering

· Columns

· Market leader in steering columns

· Preferred OE partner to major Passenger Car and Multi Utility vehicle manufacturers.

MANUFACTURING AND QUALITY

· State of the art manufacturing facility at Chennai

· Independent manufacturing cells for production of Energy Absorbing and Collapsible Columns, Tilt and Telescopic Steering Columns, Intermediate Shafts and Universal joint Assemblies

· TS 16949 : 2002 certification

PRESS RELEASES:

DECEMBER 17, 2010

NSK TO EXPAND STEERING SYSTEMS BUSINESS IN INDIA

- NSK ACQUIRES MAJORITY SHAREHOLDING IN RANE NSK STEERING SYSTEMS –

Tokyo, Japan, December 15, 2010 — NSK Limited (NSK; Headquarters: Tokyo, Japan; President and CEO: Norio Otsuka) is pleased to announce its acquisition of a majority shareholding in Rane NSK Steering Systems (RNSS), a manufacturer of steering systems that NSK jointly established with Rane Group in India. In addition to the recent growing Chinese automobile market, India is one of the fastest growing markets in the world. NSK aims to further expand its steering system business in the rapidly growing Indian automobile market through swiftly implementing a coherent growth strategy.

Since its founding in 1997 as a 50:50 joint venture company, RNSS has continued to supply manual steering columns (MSCs) and electric power steering (EPS) systems that excel in both safety and quality. Recent years in India have seen a rapid expansion of the automobile market driven by a high demand for small cars, growing public awareness of environmental protection and increasing interest in advanced safety technologies. Under these circumstances, it is expected that functional steering products, including EPS systems that contribute to greater fuel efficiency, will come into wider use in India.

Although the growth of the Indian automobile market will continue, there are challenges such as the severe road conditions in India and other unique market factors. NSK established a regional headquarter in India in April 2010 to coordinate between teams from Production, Sales and Marketing, and Technology, aiming for a stronger business foundation and business growth.

NSK purchased part of the RNSS shares owned by the Rane Group in November 2010 and acquired the majority shareholding in RNSS. NSK will continue its commitment to the Indian market and will put even more effort in its customer service and in its business expansion. 

In response to the increasing demand for EPS systems, which results from many foreign automobile manufacturers entering into the Indian automobile market, RNSS will upgrade its EPS plant in Bawal to increase production capability and further improve its competitiveness by introducing the latest EPS technologies. At the same time, in response to increasing demand for MSCs from Indian automobile manufacturers, NSK will invest significantly in facilities to further improve the quality of its MSCs and assure consistent supply to local automobile manufacturers that matches local needs.

NSK will continue to support the further development of motorization in India by providing Indian customers with a stable supply of high-quality, highly functional steering products and bearings to meet local needs, in addition to providing excellent customer service.

RANE NSK STEERING SYSTEMS

RNSS was co-established by the Rane Group and NSK in Chennai in 1997 as a 50:50 joint venture company. The company started the large-scale production of steering columns at its plant in Chennai, South-East India in 1998 and established a production base for EPS systems in Bawal, in the state of Haryana, North India, in 2008. At present, it manufactures the following products in response to Indian market needs at its two plants in Chennai and Bawal:

· Steering columns, intermediate shafts and joint assemblies (Chennai Plant)

· Electric power steering systems (Bawal Plant)

NSK LIMITED

NSK, which was founded in 1916, was the first Japanese manufacturer to produce ball bearings. Ever since then, the company has developed many different types of bearings and has been supplying them worldwide, thereby contributing substantially to the growth of many industries and to the advancement of mechanical technology. Now, NSK has the largest share of the bearings market in Japan and is also the global No. 3 in this sector. NSK has used its expertise in precision machining technology, refined through years of bearing manufacturing, to diversify into automotive products, precision machinery and parts, and mechatronic products. In addition, NSK has been very active overseas since the 1960s and at present has 63 production sites in 13 different countries worldwide. The NSK Group has two companies in India, RNSS and NSK-ABC Bearings Limited, which was established in 2007 and manufactures respectively steering products and bearings, including those for automobiles.

RANE GROUP

The Rane Group, which was founded in 1929, consists of seven companies that manufacture major automobile parts, such as safety systems and steering parts. The group reported total sales of 16,629 million Indian rupees (about 30 billion yen) in fiscal 2009.

The Rane Group has incorporated TQM (Total Quality Management) in its management strategies. The group includes four Deming Prize-winning companies.

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.53.66
UK Pound	1	Rs.86.37
Euro	1	Rs.69.24

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.