MIRA INFORM REPORT

Report Date :

26.02.2013

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, Chennai – 600086, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
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 (36)

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

Maximum Credit Limit :	USD 1400000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of NSK Limited, Japan. It is an established company having moderate track record. It has earned some profit from its operations during 2012. However, financial position of the company needs improvement. Trade relations are reported to be fair. Business is active. Payments are slow but correct. 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. Ganesh Lakshminarayan

Designation :

Nominee Director

Address :

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

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/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	L35999TN1936PLC002202	RANE HOLDINGS LIMITED	Managing director	01-04-11	26-06-86	-	Active	NO
2	L35999TN1964PLC005276	RANE BRAKE LININGS LIMITED	Director	26-09-86	26-09-86	-	Amalgamated	NO
3	U35999TN1987PLC014600	RANE TRW STEERING SYSTEMS LIMITED	Nominee director	03-07-87	03-07-87	-	Active	NO
4	L34103TN1967PLC005539	RANE ENGINE VALVES LIMITED	Managing director	10-04-89	10-04-89	-	Amalgamated	NO
5	L85110TN1936PLC071646	KAR MOBILES LIMITED	Director	06-01-94	06-01-94	-	Active	NO
6	L92490TN1983PLC009903	EIH ASSOCIATED HOTELS LIMITED	Director	23-03-94	23-03-94	-	Active	NO
7	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Nominee director	22-03-95	22-03-95	-	Active	NO
8	U65993TN1982PLC009748	RANE INVESTMENTS LIMITED	Director	26-06-95	26-06-95	-	Amalgamated	NO
9	U51909DL1991PLC042645	JMA RANE MARKETING LIMITED	Director	26-04-97	26-04-97	-	Active	NO
10	L74999TN1972PLC006127	RANE ENGINE VALVE LIMITED	Managing director	01-04-11	29-03-99	-	Active	NO
11	L65993TN2004PLC052856	RANE (MADRAS) LIMITED	Director	31-03-04	31-03-04	-	Active	NO
12	U27104TN1996PLC060251	RANE DIECAST LIMITED	Nominee director	17-08-05	17-08-05	-	Active	NO
13	L63011TN2004PLC054948	RANE BRAKE LINING LIMITED	Director	22-07-08	18-06-07	-	Active	NO
14	L55101WB1949PLC017981	EIH LIMITED	Director	30-01-08	30-01-08	-	Active	NO
15	U72900KA2007PLC044415	SASMOS HET TECHNOLOGIES LIMITED	Director	26-07-12	03-11-11	-	Active	NO

Name :

Mr. Lakshman Lakshminarayan

Designation :

Nominee Director

Address :

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

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/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	L35999TN1964PLC005276	RANE BRAKE LININGS LIMITED	Managing director	27-12-75	27-12-75	-	Amalgamated	NO
2	L35999TN1936PLC002202	RANE HOLDINGS LIMITED	Managing director	01-04-11	12-11-76	-	Active	NO
3	L33129TZ1972PLC000641	PRICOL LIMITED	Director	24-03-82	24-03-82	18-04-09	Active	NO
4	U35999TN1987PLC014600	RANE TRW STEERING SYSTEMS LIMITED	Nominee director	03-07-87	03-07-87	-	Active	NO
5	L34103TN1967PLC005539	RANE ENGINE VALVES LIMITED	Director	10-04-89	10-04-89	-	Amalgamated	NO
6	U51909DL1991PLC042645	JMA RANE MARKETING LIMITED	Director	17-01-91	17-01-91	-	Active	NO
7	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Nominee director	22-03-95	22-03-95	-	Active	NO
8	L74999TN1972PLC006127	RANE ENGINE VALVE LIMITED	Director	25-06-97	25-06-97	-	Active	NO
9	L85110TN1936PLC071646	KAR MOBILES LIMITED	Director	30-07-99	30-07-99	-	Active	NO
10	U65993TN1982PLC009748	RANE INVESTMENTS LIMITED	Director	14-03-02	14-03-02	-	Amalgamated	NO
11	L65993TN2004PLC052856	RANE (MADRAS) LIMITED	Director	31-03-04	31-03-04	-	Active	NO
12	L63011TN2004PLC054948	RANE BRAKE LINING LIMITED	Director	22-07-08	18-06-07	-	Active	NO
13	L34102PN1958PLC011172	FORCE MOTORS LIMITED	Director	29-09-07	29-09-07	-	Active	NO
14	U74999DL1990PLC041398	DCM ENGINEERING LIMITED	Director	05-09-08	05-09-08	-	Active	NO
15	L28932PN1990PLC016314	AUTOMOTIVE STAMPINGS AND ASSEMBLIES LIMITED	Director	16-07-10	28-04-10	-	Active	NO
16	U34100MH1995PLC093733	TATA AUTOCOMP SYSTEMS LIMITED	Director	09-09-11	09-12-10	-	Active	NO
17	L18101DL1970PLC005197	SRF LIMITED	Director	25-07-12	11-11-11	-	Active	NO

Name :

Mr. Harish Lakshman

Designation :

Nominee Director

Address :

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

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/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	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Nominee director	01-01-02	01-01-02	-	Active	NO
2	U65993TN1982PLC009748	RANE INVESTMENTS LIMITED	Director	15-09-03	15-09-03	-	Amalgamated	NO
3	U51909DL1991PLC042645	JMA RANE MARKETING LIMITED	Director	02-12-03	02-12-03	-	Active	NO
4	L65993TN2004PLC052856	RANE (MADRAS) LIMITED	Director	31-03-04	31-03-04	-	Active	NO
5	L35999TN1936PLC002202	RANE HOLDINGS LIMITED	Director	19-05-04	19-05-04	-	Active	NO
6	U27104TN1996PLC060251	RANE DIECAST LIMITED	Nominee director	17-08-05	17-08-05	-	Active	NO
7	U35999TN1987PLC014600	RANE TRW STEERING SYSTEMS LIMITED	Managing director	01-04-12	01-06-06	-	Active	NO
8	U99999DL1959PLC176013	AUTOMOTIVE COMPONENT MANUFACTURERS ASSOCIATION OF INDIA	Director	08-09-06	08-09-06	-	Active	NO
9	U40101TN2008PTC067780	SAVITHUR ENTERPRISES PRIVATE LIMITED	Director	16-05-08	16-05-08	-	Active	NO
10	L63011TN2004PLC054948	RANE BRAKE LINING LIMITED	Director	20-07-09	22-07-08	-	Active	NO
11	L74999TN1972PLC006127	RANE ENGINE VALVE LIMITED	Director	22-07-09	23-07-08	-	Active	NO
12	U74900KA2008PTC048723	BROADVISION PERSPECTIVES INDIA PRIVATE LIMITED	Director	29-12-08	29-12-08	-	Active	NO
13	U85191KA2008PTC048722	BROADVISION SERVICES PRIVATE LIMITED	Director	29-12-08	29-12-08	-	Active	NO
14	U70101TN2010PTC074727	HL HILL STATION PROPERTIES PRIVATE LIMITED	Director	26-02-10	26-02-10	-	Active	NO
15	U85320TN1999NPL041989	YOUNG PRESIDENTS ORGANISATION (CHENNAI CHAPTER)	Director	30-09-11	14-09-11	-	Active	NO
16	U72900KA2007PLC044415	SASMOS HET TECHNOLOGIES LIMITED	Director	26-07-12	03-11-11	-	Active	NO

Name :

Natarajan Lakshminarayanan

Designation :

Director

Address :

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

Date of Birth/Age :

25.10.1964

Date of Appointment :

27.07.2012

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	02-03-06	02-03-06	-	Active	NO
2	U29130TN2007PTC064307	NSK INDIA SALES COMPANY PRIVATE LIMITED	Additional director	30-09-11	30-09-11	10-12-12	Active	NO
3	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Director	27-07-12	20-10-11	-	Active	NO

Name :

Akitoshi Ichii

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U29130TN2006PLC059088	NSK-ABC BEARINGS LIMITED	Additional director	27-06-12	27-06-12	-	Active	NO
2	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Additional director	27-07-12	27-07-12	-	Active	NO
3	U29130TN2007PTC064307	NSK INDIA SALES COMPANY PRIVATE LIMITED	Director	25-09-12	25-09-12	-	Active	NO

KEY EXECUTIVES

Name :	Mr. 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 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	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

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	32, Khader Nawaz Khan Road, Nungambakkam, Chennai – 600006, Tamilnadu, India
PAN.:	AAEFP5579P
Holding Company :	NSK Limited Japan (NSK Limited) (Effective November 30, 2010)
Venturer/Investing Party having significant influence on the Company :	Rane Holdings Limited
Fellow Subsidiaries :	· NSK Steering Systems America Inc (NSK America) (Effective November 30, 2010) · SIAM NSK Steering Systems Company Limited (SIAM NSK) (Effective November 30, 2010) · Changshu NSK Needle Bearing Company Limited (NSK Needle)(Effective November 30, 2010) · NSK Korea Limited (NSK Korea) (Effective November 30, 2010) · NSK-Chugai Limited (NSK Chugai) (Effective November 30, 2010) · NSK Corporation (NSK Corp) (Effective November 30, 2010) · NSK (Singapore) Private Limited (NSK Singapore) (Effective November 30, 2010) · NSK India Sales Company Private Limited (Effective November 30, 2010)

CAPITAL STRUCTURE

As on 31.03.2012

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

Number of Shares held by Holding Company (NSK Limited.) Rs.9.129 Millions

Reconciliation of the Number of Shares

Equity Shares	Number of Shares	Rs. In Millions
Number of Shares outstanding as at the beginning of the year	1,79,00,000	179.000
Number of Shares outstanding as at the end of the year	1,79,00,000	179.000

Disclosure of shareholding more than five per cent in company

Name of shareholder	Number of shares held in company	Percentage of shareholding in company
NSK Limited	91,29,000	51.00%
Rane Holdings Limited	87,71,000	49.00%

Rights, preferences and restrictions attached to the shares

Equity Shares: The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		179.000	179.000	179.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		175.400	121.300	178.566
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		354.400	300.300	357.566
LOAN FUNDS
1] Secured Loans		0.000	0.000	85.000
2] Unsecured Loans		479.300	406.500	44.966
TOTAL BORROWING		479.300	406.500	129.966
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
Deferred Government Grants		0.600	0.700	0.000
TOTAL		834.300	707.500	487.532
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		885.000	511.100	487.066
Capital work-in-progress		122.200	303.700	21.184
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	23.231
Non-Other Current Assets		27.300	16.500	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	556.700	219.900	151.144
	Sundry Debtors	373.600	166.300	138.562
	Cash & Bank Balances	47.400	26.300	10.278
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	255.500	203.600	120.270
Total Current Assets		1233.200	616.100	420.254
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1013.000	399.600	430.756
	Other Current Liabilities	399.700	320.700	16.786
	Provisions	20.700	19.600	16.661
Total Current Liabilities		1433.400	739.900	464.203
Net Current Assets		(200.200)	(123.800)	(43.949)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		834.300	707.500	487.532

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	3115.400	1786.900	1634.893
		Other Income	1.800	1.000	26.170
		TOTAL (A)	3117.200	1787.900	1661.063
Less	EXPENSES
		Cost of materials consumed	2382.600	1322.400
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	5.700	(23.900)	1507.770
		Employee benefit expense	215.500	161.000
		Other expenses	322.800	284.900
		TOTAL (B)	2926.600	1744.400	1507.770
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		190.600	43.500	153.293
Less	FINANCIAL EXPENSES (D)		48.600	15.700	15.314
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		142.000	27.800	137.979
Less/ Add	DEPRECIATION/ AMORTISATION (F)		87.900	61.000	56.514
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		54.100	(32.200)	81.465
Less	TAX (H)		0.000	23.200	18.823
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		54.100	(56.400)	62.642
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(49.649)	6.751	(55.891)
	BALANCE / (LOSS) CARRIED TO THE B/S		4.451	(49.649)	6.751
	EARNINGS IN FOREIGN CURRENCY		27.000	NA	NA
	IMPORTS
		Raw Materials and Components	1091.900	313.2801	651.826
		Stores & Spare Parts	8.100	3.785	4.258
		Capital Goods	121.000	213.798	1.534
	TOTAL IMPORTS		1221.000	530.8631	657.618
	Earnings / (LOSS) Per Share (Rs.)		3.02	(3.15)	3.50

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.74	(3.15)	3.77
Net Profit Margin (PBT/Sales)	(%)	1.74	(1.80)	4.98
Return on Total Assets (PBT/Total Assets}	(%)	2.55	(2.86)	8.98
Return on Investment (ROI) (PBT/Networth)		0.15	(0.11)	0.23
Debt Equity Ratio (Total Debt /Networth)		1.35	1.35	1.67
Current Ratio (Current Asset/Current Liability)		0.86	0.83	0.91

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]	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

FINANCIAL PERFORMANCE:-

During the year, the Company’s sales and operating revenues grew by 75.39 % when compared to the previous year. The Profit Before Tax improved to Rs.54.100 Millions against the loss of Rs. (33.200) Millions in the previous year. Earnings per share was higher at Rs. 3.02 as against Rs. (3.15) in the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW:

The Company is engaged in the manufacture and marketing of electric power steering (EPS) and manual steering column (MSC) for passenger cars and commercial vehicles, and as such operates in a single reportable business segment viz. components for transportation industry.

INDUSTRY STRUCTURE, DEVELOPMENTS AND PERFORMANCE:

Domestic automobile market had a mixed year in 2011-12 with only select vehicles reaching the expected industry growth estimates. Overall the market grew by 14%. Though the Passenger Car and Medium and Heavy Commercial Vehicles (M and HCV) showed a sluggish growth during the year due to continuously increasing interest rates, the gap was made up by the growth in other categories like Small Commercial Vehicles and Light Commercial Vehicles.

OPERATIONAL AND FINANCIAL PERFORMANCE

FINANCIAL REVIEW

In the fiscal year ended March 2012, the combined sales from the electric power steering (EPS) and manual steering column (MSC) businesses stood at Rs.3081.500 Millions, a growth of 75% over the previous year, and the PBT was Rs. 54.000 Millions an increase of Rs.87.000 Millions. The sales from new products generated Rs.1440.000 Millions which is 46% of total sales. The Company continued to focus on operational efficiencies to improve productivity and implemented cost control measures through innovative practices at the shop floor level to sustain growth and record profitability for the year, Impact of volatile foreign currency exchange rates and high interest costs were managed through effective hedging of foreign currency exposures and sourcing low cost funds and 236 projects were undertaken during the year as against 220 projects in the previous year. Some of the awards received by the Company for its eminence in manufacturing and quality include:

OUTLOOK

The Company is cautiously optimistic about the stable growth in the automotive industry, especially in the passenger car and commercial vehicle markets. EPS systems are preferred over MSC systems in new generation passenger cars and utility vehicles because of better driving comfort, savings from increased fuel efficiency and eco-friendly technology. The demand for EPS systems is expected to increase over MSC system. Switch to EPS systems may result in gradual decline in the demand for MSC systems in the passenger cars and utility vehicles. The Company is continuously increasing the production capacity matching the market requirements.

However, the demand for MSC systems in commercial vehicles is likely to gain momentum. The Company is gearing up to meet this demand. Aggressive localization is being pursued to mitigate weakening of rupee against Japanese Yen.

The concerns of liquidity, high inflation, weak rupee, volatile oil price and high interest rate may negatively affect the growth sentiments of the auto industry. The Company is well placed to evaluate these conditions and to address any specific issue affecting the growth.

UNSECURED LOAN

(Rs. In Millions)

As on

31.03.2011

As on

31.03.2010

Long Term Borrowings

Term Loans from Banks*

395.400

353.900

Less: Current Maturities of Long Term Debt

(28.400)

(28.400)

Short Term Borrowings

Loans repayable on demand from Banks

112.300

81.000

Total

479.300

406.500

*Terms of repayment of above term loan

Bank	Interest rate	Terms of Repayment
The Bank of Tokyo-Mitsubishi UFJ, Limited	9% Fixed	Loan availed 8.50 is repayable in 12 equated quarterly installments of Rs.0.71 each commencing from August 2010. Year end balance is Rs.35.400 Millions (previous year Rs.63.900 Millions). Interest is payable on monthly basis commenced from 31 October 2008.
The Bank of Tokyo-Mitsubishi UFJ, Limited	11.25% Fixed	Loan availed 29 is repayable in 12 equated quarterly installments of 2.43 each commencing from May 2013. Year end balance is Rs.290.000 Millions (previous year Rs.290.000 Millions). Interest is payable on monthly basis commenced from 24 February 2011.
Mizuho Corporate Bank Limited	10% Fixed	Loan availed 7 is repayable in 12 equated quarterly installments of 0.58 each commencing from August 2013. Year end balance is Rs.70.000 Millions (previous year Nil). Interest is payable on monthly basis commenced from 24 May 2011.

*Includes Short Term loans/Working capital demand loan/ Bank overdraft

CONTINGENT LIABILITIES

Rs. In Millions

Particular	31.03.2012	31.03.2011
Claims against the company not acknowledged as debt.
Excise Duty matter under dispute	1.100	1.100
Value Added Tax under dispute	4.000	--

FIXED ASSETS

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

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.54.04
UK Pound	1	Rs.81.80
Euro	1	Rs.71.41

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		36

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.