MIRA INFORM REPORT

Report Date :

10.01.2013

IDENTIFICATION DETAILS

Name :	NSK-ABC BEARINGS LIMITED
Formerly Known As :	NSK BEARINGS INDIA LIMITED
Registered Office :	Plot No. A2, SIPCOT Growth Centre, Oragadam, Mathur Village, Sriperumbudur Taluk, Chennai - 602105, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.03.2006
Com. Reg. No.:	18-059088
Capital Investment / Paid-up Capital :	Rs.1390.000 Millions
CIN No.: [Company Identification No.]	U29130TN2006PLC059088
Legal Form :	Closely held public limited liability company.
Line of Business :	Manufacturer of Ball and Roller Bearings.
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 3100000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Latest financial i.e. 2011-12 are missing from the government department. From the available financial of 2011, it seems that the company has recorded some accumulated losses. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered with some cautions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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/ Factory :	Plot No. A2, SIPCOT Growth Centre, Oragadam, Mathur Village, Sriperumbudur Taluk, Chennai - 602105, Tamilnadu, India
Tel. No.:	91-44-27143000
Fax No.:	91-44-27143099
E-Mail :	natarajan@nsk.com
Website :	http://www.nsk.com

DIRECTORS

As on: 25.09.2012

Name :

Mr. Yasuhiro Kamio

Designation :

Director

Address :

Naritahigashi, 2-21-4, Narita Higashi, Tokyo – 1660015, Japan

Date of Birth/Age :

22.07.1959

Date of Appointment :

22.07.2010

DIN No.:

01059349

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	30/09/2011	Active	NO
2	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Nominee director	23/07/2010	21/10/2009	20/10/2011	Active	NO
3	U29130TN2006PLC059088	NSK-ABC BEARINGS LIMITED	Director	22/07/2010	22/10/2009	-	Active	NO

Name :

Mr. Tsutomu Komori

Designation :

Director

Address :

878-6, Hiramatsucho ustunomiya tochigi prefecture – 3210931, Japan

Date of Birth/Age :

17.12.1951

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	-	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 :

Mr. Pradip Manubhai Patel

Designation :

Director

Address :

318, Samudra Mahal, Dr. Annie Besant Road, Worli, Mumbai - 400016, Maharashtra, India

Date of Birth/Age :

05.11.1947

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 - 400016, Maharashtra, India

Date of Birth/Age :

07.12.1953

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 :

Additional director

Address :

Flat No. B1, MLS Apartments 9, Dr. B. Narssimhan Road, 2^nd Street, T. Nagar, Chennai – 600017, Tamilnadu, India

Date of Birth/Age :

08.05.1963

Date of Appointment :

27.06.2012

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	27/06/2012	27/06/2012	-	Active	NO
2	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Additional director	27/07/2012	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 :

Director

Address :

A2, SIPCOT Oragadam, Kancheepuram – 602105, India

Date of Birth/Age :

13.10.1959

Date of Appointment :

22.10.2009

DIN No.:

02818455

Name :

Mr. Yasumasa Taki

Designation :

Additional Director

Address :

238A, Thomson Road, #24-01/05 Novena Square, Singapore - 307684

Date of Birth/Age :

06.02.1959

Date of Appointment :

28.06.2011

DIN No.:

03159083

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	23/09/2010	-	Active	NO
2	U29130TN2006PLC059088	NSK-ABC BEARINGS LIMITED	Additional director	28/06/2011	28/06/2011	-	Active	NO

Name :

Mr. Natarajan Lakshminarayanan

Designation :

Director

Address :

34, Fourth Trust Cross Street, Mandavelli, Chennai- 600028, 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	-	Active	NO
3	U29141TN1995PLC030621	RANE NSK STEERING SYSTEMS LIMITED	Director	27/07/2012	20/10/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 25.09.2012

Names of Shareholders	No. of Shares
NSK Limited, Japan	367499995
ABC Bearings Limited, India	12500000
Yasumasa Taki	1
Akitoshi Ichii	1
Masatoshi Matsuda	1
Toshihiro Uchiyama	1
Natarajan Lakshminarayanan	1
Total	380000000

Equity Share Break up (Percentage of Total Equity)

As on: 25.09.2012

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	97.00
Bodies corporate	3.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Ball and Roller 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

Banking Relations :	--
Auditors :
Name :	B S R and Company Chartered Accountants
Address :	No.10, Mahatma Gandhi Road, Nungambakkam, Chennai – 600034, Tamilnadu, India
Tel. No.:	91-44-39145000
Fax No.:	91-44-39145999
PAN No.:	AACPN1234K
Holding Company :	NSK Limited, Japan
Fellow Subsidiaries :	· NSK-Chugai, Limited, Japan · NSK Korea Company Limited, Korea · NSK Network and Systems Company Limited, Japan · NSK APTC (Thailand) Company Limited, Thailand · NSK International (Singapore) Pte Limited, Singapore · NSK India Sales Company Private Limited, India · Amatsuji Steel Ball Mfg. Company Limited

CAPITAL STRUCTURE

As on: 25.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
400000000	Equity Shares	Rs.10/- each	Rs.4000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
380000000	Equity Shares	Rs.10/- each	Rs.3800.000 Millions

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
250000000	Equity Shares	Rs.10/- each	Rs.2500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
139000000	Equity Shares	Rs.10/- each	Rs.1390.000 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		1390.000	940.000	500.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(602.234)	(422.912)	(298.622)
NETWORTH		787.766	517.088	201.378
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		618.750	545.320	357.950
TOTAL BORROWING		618.750	545.320	357.950
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1406.516	1062.408	559.328
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1040.117	841.180	909.994
Capital work-in-progress		8.214	11.178	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	296.150	76.155	87.814
	Sundry Debtors	196.060	90.860	37.622
	Cash & Bank Balances	0.580	5.631	9.441
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	253.760	174.022	161.334
Total Current Assets		746.550	346.668	296.211
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	36.583	131.931	642.332
	Other Current Liabilities	349.418	2.627	2.855
	Provisions	2.364	2.060	1.690
Total Current Liabilities		388.365	136.618	646.877
Net Current Assets		358.185	210.050	(350.666)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1406.516	1062.408	559.328

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011
	SALES
		Income	582.280
		Other Income	3.837
		TOTAL (A)	586.117
Less	EXPENSES
		Consumption materials changes inventories	484.697
		Manufacturing service costs	45.846
		Employee related expenses	54.450
		Administrative selling other expenses	76.140
		Income loss disposal sale discontinuing operations	(0.560)
		TOTAL (B)	660.573
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(74.456)
Less	FINANCIAL EXPENSES (D)		34.145
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(108.601)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		70.161
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(178.762)
Less	TAX (H)		0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(178.762)
	BALANCE CARRIED TO THE B/S		(178.762)
	IMPORTS
		Raw Materials	575.822
		Capital Goods	181.583
	TOTAL IMPORTS		757.405
	Earnings Per Share (Rs.)		(1.29)

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	341.008	92.327
		Other Income	13.428	0.194
		TOTAL (A)	354.436	92.521
Less	EXPENSES
		Raw Materials Consumed	262.818	99.554
		Employee Costs	54.985	56.286
		Manufacturing and other Expense	67.980	164.129
		(Increase)/ Decrease in Inventories	1.595	(21.055)
		TOTAL (B)	387.378	298.914
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(32.942)	(206.393)
Less	FINANCIAL EXPENSES (D)		31.979	13.950
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(64.921)	(220.343)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		54.110	38.935
Less	PRIOR PERIOD ADJUSTMENTS		5.259	38.684
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(124.290)	(297.962)
Less	TAX (H)		0.000	0.660
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(124.290)	(298.662)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(298.622)	0.000
	BALANCE CARRIED TO THE B/S		(422.912)	(298.622)
	IMPORTS
		Raw Materials	234.879	144.831
		Capital Goods	1.342	290.098
	TOTAL IMPORTS		236.221	434.929
	Earnings/ (Loss) Per Share (Rs.)		(1.53)	(5.97)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(30.50)	(35.06)	(280.95)
Net Profit Margin (PBT/Sales)	(%)	(30.70)	(36.45)	(280.83)
Return on Total Assets (PBT/Total Assets}	(%)	(10.01)	(10.46)	(21.50)
Return on Investment (ROI) (PBT/Networth)		(0.23)	(0.24)	(1.29)
Debt Equity Ratio (Total Liability/Networth)		1.28	1.32	4.90
Current Ratio (Current Asset/Current Liability)		1.92	2.54	0.46

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	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	No
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	No
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

BACKGROUND OF THE COMPANY:

Subject was incorporated during March 2006, as a joint venture between NSK Limited, Japan and ABCBearings Limited, India (for the purpose of manufacturing bearings primarily for supply to automotive industry). NSK Limited, Japan holds 91% share in the venture, and the remaining 9% is held by ABC Bearings Limited, India.

Note:

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

PERFORMANCE OF THE COMPANY:

Sales (net of Excise Duty) during the year ended 31st Mar 2011 were Rs.582.000 Millions as against Rs. 341.000 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 first half of the financial year. However, with the support of their customers, suppliers and employees they were able to achieve the budgeted growth during the second half of the financial year.

The demand scenario looks upbeat and will provide them an opportunity to further exploit their 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 committee has initiated required measures to safeguard the company from such risks and is confident of achieving the savings in input cost through localisation of inputs apart from price negotiations with the existing suppliers abroad.

The company has initiated plans for introduction of additional production facility for manufacture of standard bearings for automotive / industrial customers. The facility establishment is scheduled to be completed during second half of ensuing financial year and the commercial operation is expected during the last quarter of the financial year. The proposed expansion of production facility would provide 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.

Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks unsecured	552.060
Working capital loans banks unsecured	66.690
Total	618.750	545.320

Fixed Assets:

· Leasehold Rights

· Factory Building

· Plant and Machinery

· Office Equipments

· Furniture and Fixtures

· Vehicle

· Computer

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.54.96
UK Pound	1	Rs.88.23
Euro	1	Rs.71.92

INFORMATION DETAILS

Report Prepared by :

VRN/ UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.