MIRA INFORM REPORT

Report Date :

17.12.2013

IDENTIFICATION DETAILS

Name :	NSK-ABC BEARINGS LIMITED (w.e.f. 30.03.2007)
Formerly Known As :	NSK BEARINGS INDIA LIMITED
Registered Office :	Plot No. A2, SIPCOT Growth Centre, Oragadam, Mathur Village, Sriperumbudur Taluk, Chennai – 602 105, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	02.03.2006
Com. Reg. No.:	18-059088
Capital Investment / Paid-up Capital :	Rs.5000.000 millions
CIN No.: [Company Identification No.]	U29130TN2006PLC059088
PAN No.: [Permanent Account No.]	AACCN2689K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in business of manufacturing bearings primarily for supply to automotive industry.
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 15885000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a subsidiary of NSK Limited, Japan. It is an established company having moderate track record. There appears huge accumulated losses recorded by the company during the financial year 2013. Profitability of the company seems to be under pressure. However, trade relations are fair. Business is active. Payment terms are slow. The company can be considered for business dealings with great 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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/ Factory :	Plot No. A2, SIPCOT Growth Centre, Oragadam, Mathur Village, Sriperumbudur Taluk, Chennai – 602 105, Tamilnadu, India
Tel. No.:	91-44-27143000
Fax No.:	91-44-27143099
E-Mail :	natarajan@nsk.com
Website :	www.nsk.com

DIRECTORS

AS ON 30.08.2013

Name :

Toshihiro Uchiyama

Designation :

Director

Address :

6-6-10, Yatsu, Narashino, Chiba – 275-0266, Japan

Date of Birth/Age :

28.11.1958

Qualification :

Graduate

Date of Appointment :

30.08.2013

DIN No.:

06444925

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U29130TN2007PTC064307	NSK INDIA SALES COMPANY PRIVATE LIMITED	Director	30/08/2013	10/12/2012	-	Active	NO
2	U29130TN2006PLC059088	NSK-ABC BEARINGS LIMITED	Director	30/08/2013	10/12/2012	-	Active	NO
3	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Director	29/07/2013	25/01/2013	-	Active	NO

Name :

Mr. Tsutomu Komori

Designation :

Director

Address :

878-6, Hiramatsucho Ustunomiya, Japan 3210931

Date of Birth/Age :

17.12.1951

Qualification :

Graduate

Date of Appointment :

22.07.2010

DIN No.:

02799703

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U29130TN2007PTC064307	NSK INDIA SALES COMPANY PRIVATE LIMITED	Director	29/09/2010	21/10/2009	11/11/2013	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	25/01/2013	Active	NO

Name :

Mr. Pradip Manubhai Patel

Designation :

Director

Address :

318, Samudra Mahal, Dr. Annie Besant Road, Worli, Mumbai – 400 016, Maharashtra, India

Date of Birth/Age :

05.11.1947

Qualification :

Graduate

Date of Appointment :

10.07.2007

DIN No.:

00012138

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	Date of cessation	Company/ LLP Status	Defaulting status
1	L29259GJ1960PLC001082	ELECON ENGINEERING COMPANY LIMITED	Director	14/11/1977	14/11/1977	-	Active	NO
2	U65990MH1984PTC034179	EMSONS LEASING COMPANY PRIVATE LIMITED	Director	05/10/1984	05/10/1984	-	Active	NO
3	U65990MH1979PTC021989	MIPCO INVESTMENTS PRIVATE LIMITED	Director	22/08/1985	22/08/1985	-	Active	NO
4	U65990MH1981PTC024729	MAPLE INVESTMENTS COMPANY PRIVATE LIMITED	Director	22/08/1985	22/08/1985	-	Active	NO
5	U65990MH1981PTC024600	MANOWAY INVESTMENTS PRIVATE LIMITED	Director	22/08/1985	22/08/1985	-	Active	NO
6	L29130MH1961PLC012028	ABC BEARINGS LIMITED	Managing director	01/08/1986	01/08/1986	-	Active	NO
7	U70101MH1994PTC078298	ZIWANI PROPERTIES PRIVATE LIMITED.	Director	10/05/1994	10/05/1994	-	Active	NO
8	L29199GJ1974PLC002574	EIMCO ELECON (INDIA ) LIMITED	Director	11/01/1996	11/01/1996	-	Active	NO
9	U45200MH1994PTC078297	TAVETA PROPERTIES PRIVATE LIMITED	Director	31/10/1999	31/10/1999	-	Active	NO
10	U29199GJ2005PTC047214	IZUMI ENGINEERING INDIA PRIVATE LIMITED	Director	07/12/2005	07/12/2005	-	Strike off	NO
11	U29130TN2006PLC059088	NSK-ABC BEARINGS LIMITED	Director	10/07/2007	15/04/2007	-	Active	NO
12	U29100GJ2008PLC054839	DRA (INDIA) LIMITED	Director	22/08/2008	22/08/2008	14/03/2009	Active	NO
13	U32201GJ1972PLC002065	POWER BUILD LIMITED	Director	13/09/2011	17/03/2011	-	Active	NO
14	U29259GJ1956PLC001509	EMTICI ENGINEERING LIMITED	Director	20/08/2012	16/01/2012	-	Active	NO
15	U50300GJ2012PLC069099	ESSEX AUTOMOBILE SOLUTIONS LIMITED	Director	17/02/2012	17/02/2012	29/03/2012	Active	NO
16	U29219GJ1991PLC015379	ELECON EPC PROJECTS LIMITED	Director	28/09/2012	18/05/2012	-	Active	NO
17	U29150GJ2012PTC070532	EXCEL EPC PROJECTS PRIVATE LIMITED	Director	30/05/2012	30/05/2012	-	Active	NO

Name :

Mr. Tanuj Manubhai Patel

Designation :

Director

Address :

Turf View, A Wing, Nehru Planetorium Road, Worli, Mumbai – 400 016, Maharashtra, India

Date of Birth/Age :

07.12.1953

Qualification :

Graduate

Date of Appointment :

10.07.2007

DIN No.:

00016788

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U65990MH1979PTC021989	MIPCO INVESTMENTS PRIVATE LIMITED	Director	11/12/1979	11/12/1979	-	Active	NO
2	L17110GJ1935PLC000494	SHRI DINESH MILLS LIMITED	Director	20/09/1984	20/09/1984	-	Active	NO
3	U65990MH1984PTC034179	EMSONS LEASING COMPANY PRIVATE LIMITED	Director	05/10/1984	05/10/1984	-	Active	NO
4	L72900GJ1980PLC003643	MIPCO SEAMLESS RINGS GUJARAT LIMITED	Director	22/06/1989	22/06/1989	03/02/2011	Active	NO
5	L29130MH1961PLC012028	ABC BEARINGS LIMITED	Whole-time director	24/07/2007	01/02/1993	-	Active	NO
6	U45200MH1994PTC078297	TAVETA PROPERTIES PRIVATE LIMITED	Director	10/05/1994	10/05/1994	-	Active	NO
7	U65990MH1981PTC024729	MAPLE INVESTMENTS COMPANY PRIVATE LIMITED	Director	25/03/1998	25/03/1998	-	Active	NO
8	U65990MH1981PTC024600	MANOWAY INVESTMENTS PRIVATE LIMITED	Director	25/03/1998	25/03/1998	-	Active	NO
9	U67120MH2000PTC123498	SATURN HOLDINGS AND PROPERTIES PRIVATE LIMITED	Director	05/01/2000	05/01/2000	-	Active	NO
10	U29130TN2006PLC059088	NSK-ABC BEARINGS LIMITED	Director	10/07/2007	15/04/2007	-	Active	NO
11	U26933GJ2011PTC064162	ARTA BROCH CERAMICS PRIVATE LIMITED	Director	23/02/2011	23/02/2011	-	Active	NO

Name :

Mr. Akitoshi Ichii

Designation :

Director

Address :

Flat No. B1, MLS Apartments 9, Dr. B. Narssimhan Road, 2^nd Street, T. Nagar, Chennai – 600 017, Tamilnadu, India

Date of Birth/Age :

08.05.1963

Qualification :

Graduate

Date of Appointment :

25.09.2012

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U29130TN2006PLC059088	NSK-ABC BEARINGS LIMITED	Director	25/09/2012	27/06/2012	-	Active	NO
2	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Director	29/07/2013	27/07/2012	-	Active	NO
3	U29130TN2007PTC064307	NSK INDIA SALES COMPANY PRIVATE LIMITED	Director	25/09/2012	25/09/2012	-	Active	NO

Name :

Mr. Masatoshi Matsuda

Designation :

Managing Director

Address :

A2, SIPCOT Oragadam, Sriperumbudur Taluk, Chennai – 602 105, Tamilnadu, India

Date of Birth/Age :

13.10.1959

Qualification :

Graduate

Date of Appointment :

22.10.2009

DIN No.:

02818455

Name :

Mr. Natarajan Lakshminarayanan

Designation :

Director

Address :

34, Fourth Trust Cross Street, Mandavelli, Chennai – 600 028, Tamilnadu, India

Date of Birth/Age :

25.11.1964

Date of Appointment :

02.03.2006

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	Date of cessation	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	10/12/2012	Active	NO
3	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Director	27/07/2012	20/10/2011	01/06/2013	Active	NO

Name :

Mr. Ajit Krishnan

Designation :

Additional Director

Address :

Unit No.1, 17, Arch Bishop Math, IAS Avenue, Boat Club Road, R.A. Puram, Chennai – 600 028, Tamilnadu, India

Date of Birth/Age :

12.11.1958

Date of Appointment :

29.10.2013

DIN No.:

01630599

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U29195KA1997PTC027954	SKF TECHNOLOGIES (INDIA) PRIVATE LIMITED	Director	15/06/2007	15/06/2007	31/12/2012	Active	NO
2	U29130TN2006PLC059088	NSK-ABC BEARINGS LIMITED	Additional director	29/10/2013	29/10/2013	-	Active	NO
3	U29130TN2007PTC064307	NSK INDIA SALES COMPANY PRIVATE LIMITED	Additional director	11/11/2013	11/11/2013	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.08.2013

Names of Shareholders	No. of Shares
NSK Limited, Japan	487499995
ABC Bearings Limited, India	12500000
Yasumasa Taki	1
Akitoshi Ichii	1
Masatoshi Matsuda	1
Toshihiro Uchiyama	1
Natarajan L.	1
Total	500000000

AS ON 30.08.2013

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]	97.00
Bodies corporate	3.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in business of manufacturing bearings primarily for supply to automotive industry.

Products :

Item Code No. (ITC Code)	84821011
Product Description	Ball Bearings

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Ball Bearing	Qty	NA	4348000	3636052

Note: Installed capacity is as certified by the management and have not been verified by the auditors as this is a technical matter. Licensed capacity has not been disclosed as the industry has been de-licensed.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Bank of Tokyo- Mitsubishi UFJ Limited Mizuho Corporate Bank Limited Citi Bank NA, Chennai, Tamilnadu, India
Facilities :	--

Banking Relations :	--
Auditors :
Name :	B S R and Associates Chartered Accountants
Address :	No.10, Mahatma Gandhi Road, Nungambakkam, Chennai – 600 034, Tamilnadu, India
Tel. No.:	91-44-39145000
Fax No.:	91-44-39145999
PAN No.:	AACPN1234K
Holding Company :	NSK Limited, Japan
Fellow Subsidiaries :	· NSK India Sales Company Private Limited, India · NSK China Investment Co Limited · NSK Brasil LTDA, Brazil · NSK Bearings Manufacturing (Thailand) Co Limited · NSK APTC (Thailand) Company Limited, Thailand · NSK International (Singapore) Pte. Limited, Singapore · NSK Chugai, Limited · NSK Network Systems and Co Limited, Japan · Amatsuji Steel Ball Mfg. Co. Limited · NSK Korea Co. Limited · PT.AKS Precision Ball Indonesia, Indonesia · Changshu NSK Needle Bearing Co Limited · Kun Shan NSK Co Limited · NSK Asia Pacific Technology Centre (Thailand) · NSK Europe Limited · NSK Steering Systems Co Limited · NSK Strearing Systems America · P T NSK Indonesia Rane · NSK Steering Systems Limited Siam · NSK Steering Systems Co Limited

CAPITAL STRUCTURE

AS ON 30.08.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
500000000	Equity Shares	Rs.10/- each	Rs.5000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500000000	Equity Shares	Rs.10/- each	Rs.5000.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	5000.000	3800.000	1390.000
(b) Reserves & Surplus	(1028.824)	(978.010)	(602.234)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	3971.176	2821.990	787.766
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) Long-term provisions	4.988	2.599	1.413
Total Non-current Liabilities (3)	4.988	2.599	1.413
(4) Current Liabilities
(a) Short term borrowings	0.000	200.000	456.690
(b) Trade payables	326.737	277.233	381.721
(c) Other current liabilities	38.394	305.525	166.246
(d) Short-term provisions	0.745	0.976	0.951
Total Current Liabilities (4)	365.876	783.734	1005.608
TOTAL	4342.040	3608.323	1794.787
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2461.021	1566.463	1031.692
(ii) Intangible Assets	4.050	6.109	8.425
(iii) Capital work-in-progress	60.131	610.187	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	73.552	196.250	142.579
(e) Other Non-current assets	16.043	0.700	0.000
Total Non-Current Assets	2614.797	2379.709	1182.696
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	655.359	632.677	296.150
(c) Trade receivables	376.195	296.516	196.060
(d) Cash and cash equivalents	351.552	90.283	0.580
(e) Short-term loans and advances	332.287	206.923	116.103
(f) Other current assets	11.850	2.215	3.198
Total Current Assets	1727.243	1228.614	612.091
TOTAL	4342.040	3608.323	1794.787

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	2385.984	1245.844	582.840
		Other Income	(44.873)	(166.113)	(42.948)
		TOTAL (A)	2341.111	1079.731	539.892
Less	EXPENSES
		Cost of materials consumed	1615.138	1232.966	503.813
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	156.336	(236.658)	(63.540)
		Employee benefit expense	122.923	99.599	63.221
		Expenditure on production, transportation and other expenditure pertaining to E&P activities	0.000	(0.962)	4.159
		Other expenses	310.567	211.567	107.255
		TOTAL (B)	2204.964	1306.512	614.908
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		136.147	(226.781)	(75.016)
Less	FINANCIAL EXPENSES (D)		22.040	40.063	34.145
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		114.107	(266.844)	(109.161)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		164.921	108.932	70.161
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(50.814)	(375.776)	(179.322)
Less	TAX (H)		0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(50.814)	(375.776)	(179.322)
	Earnings/ (Loss) Per Share (Rs.)		(0.13)	(1.51)	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(2.17)	(34.80)	(33.21)
Net Profit Margin (PBT/Sales)	(%)	(2.13)	(30.16)	(30.77)
Return on Total Assets (PBT/Total Assets}	(%)	(1.19)	(12.53)	(9.99)
Return on Investment (ROI) (PBT/Networth)		(0.01)	(0.13)	(0.23)
Debt Equity Ratio (Total Debt/Networth)		0.00	0.07	0.58
Current Ratio (Current Asset/Current Liability)		4.72	1.57	0.61

LOCAL AGENCY FURTHER INFORMATION

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	No
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	No
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) Date of Birth of Proprietor/Partner/Director, if available	Yes
32) PAN of Proprietor/Partner/Director, if available	No
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	No

Note:

No Charges Exist for Company.

Unsecured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Loans repayable on demand from banks	0.000	200.000
Total	0.000	200.000

Note:

The registered office of the company has been shifted from No.7, Boat Club Road, R.A. Puram, Chennai – 600 028, Tamilnadu, India to the present address w.e.f. 21.05.2009.

COMPANY OVERVIEW:

The Company was incorporated during March 2006, as a joint venture between NSK Limited, Japan and ABC Bearings Limited, India (for the purpose of manufacturing bearings primarily for supply to automotive industry).

PERFORMANCE OF THE COMPANY:

Sales (net of Excise Duty) during the year ended 31^st March 2013 were Rs.2377.000 millions as against Rs.1245.000 millions in the previous year.

The current financial year began with uncertainty created by foreign exchange volatility and liquidity crunch which resulted in an overall slowdown in the business volumes during the financial year. However, with the support of their customers, suppliers and employees they were able to achieve the targeted growth.

The demand scenario looks upbeat and will provide them an opportunity to further exploit our potential to reap better results. There are some caveats input prices are increasing leading to shrinkage of margins, availability of quality inputs from local vendors and exchange volatility are causes for concern. The operating managers have initiated required measures to safeguard the company from such risks and are confident of achieving the savings in input cost through localisation of inputs apart from price negotiations with the existing suppliers in India and abroad.

During the year, the company has installed additional production facility for manufacture of HUB III Bearings and Standard Bearings for automotive / industrial customers. The facility establishment was completed and the commercial operation was commenced. This expansion has provided support to expand their business volumes and customers.

Their focus is on shareholder value and growth with profitability and the Directors are confident that the ensuing year would provide ample scope for improving the capacity utilization with utmost focus on quality, cost and delivery.

FIXED ASSETS:

Tangible Assets

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipments

· Computer

· Leasehold Improvements

Intangible Assets

· 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 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.62.10
UK Pound	1	Rs.101.27
Euro	1	Rs.85.43

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.