MIRA INFORM REPORT

Report Date :

18.03.2013

IDENTIFICATION DETAILS

Name :	MARC BEARINGS PRIVATE LIMITED
Registered Office :	Survey No. 34, Plot No. 17, National Highway 8B, Dist. Rajkot, Shapar Veraval, Rajkot – 360002, Gujarat
Country :	India
Date of Incorporation :	21.06.2012
Com. Reg. No.:	070865
Capital Investment / Paid-up Capital :	Rs. 15.000 Millions
CIN No.: [Company Identification No.]	U29100GJ12PTC070865
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of all types of Tapered Roller Bearing, Spherical Roller Bearing and Cylindrical Roller Bearing.
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was established as a partnership concern in the year 1995 by the name ‘Marc Industries’ and during June 2012 it got reconstituted into a Private Limited Company. Mr. mansukh M., Director has provided all information to us. The concern has performed well. Trade relations are reported as fair. Business is active. Payments terms 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.

INFORMATION PARTED BY

Name :	Mr. Mansukh Jayantilal Makadia
Designation :	Director
Contact No.:	91-9825097412
Date :	25.02.2013

LOCATIONS

Registered Office/Factory :	Survey No. 34, Plot No. 17, National Highway 8B, Dist. Rajkot, Shapar Veraval, Rajkot – 360002, Gujarat, India
Tel. No.:	91-2827-252250
Mobile No.:	91-9825097412 (Mr. Mansukh Makadia)
Fax No.:	91-2827-252250
E-Mail :	Marcind_1998@yahoo.com
Website :	Marcbearings.com
Area :	2000 sq. mtr.
Location :	Owned

DIRECTORS

Name :	Mr. Narendrakumar Naranbhai Kaneriya
Designation :	Director
Address :	6, Vaishali Nagar Street No. 6,Raiya Rood, Rajkot- 360001,Gujarat, India
Date of Birth/Age :	19.09.1966
Name :	Mr. Mansukh Jayantilal Makadia
Designation :	Director
Address :	Aneri, B/H. Raiya Telephone Exge, St 2, Mombasa Avenew Park, 150 Feet Ring Road, Rajkot- 360007,Gujarat, India
Date of Birth/Age :	05.04.1963

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 16.06.2012

Names of Shareholders	No. of Shares	%
Mr. Mansukh Jayantilal Makadia	426600	28.44
Mr. Bharatkumar Chhaganlal Makadia	225000	15.00
Mr. Rakesh Kantilal Dhamsania	203550	13.57
Smt. Vijayaben Ambavibhai Virparia	139950	9.33
Mr. Narendrakumar Naranbhai Kenaria	139950	9.33
Smt. Smitaben Manshukhbhai Makadia	225000	15.00
Smt. Jagruti Hitendra Patel	139950	9.33
Total	1500000	100

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of all types of Tapered Roller Bearing, Spherical Roller Bearing and Cylindrical Roller Bearing.
Exports :
Products :	Tapered Roller Bearing, Spherical Roller Bearing Cylindrical Roller Bearing.
Countries :	Gulf Countries Europe Russia
Imports :
Products :	Raw material
Countries :	China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :	End Users
No. of Employees :	25 (Approximately)
Bankers :	Dena Bank, Race Course Road Branch, Kishanpara Chowk, Rajkot – 360001, Gujarat, India
Facilities :	CC – Rs. 2.500 Millions EPC – Rs. 0.225 Millions TL – Rs. 7.500 Millions

Banking Relations :	---
Auditors :
Name :	G Unadakat Chartered Accountant
Address :	Rajkot, Gujarat, India
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs. 15.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2012	31.03.2011
Sales Turnover	130.000	100.000

Expected Sales (2012-2013) : Rs. 140.000 Millions

The above information has been parted by (Mr. Mansukh Jayantilal Makadia – Director)

ABRIDGED BALANCE SHEET

MARC INDUSTRIES

SOURCES OF FUNDS		21.05.2012
SHAREHOLDERS FUNDS
1] Share Capital		15.000
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		15.000
LOAN FUNDS
1] Secured Loans		17.898
2] Unsecured Loans		6.304
TOTAL BORROWING		24.202
DEFERRED TAX LIABILITIES		0.000
TOTAL		39.202
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		21.804
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	15.264
	Sundry Debtors	10.636
	Cash & Bank Balances	1.682
	Other Current Assets	0.131
	Loans & Advances	7.392
Total Current Assets		35.105
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	17.531
	Other Current Liabilities	0.014
	Provisions	0.162
Total Current Liabilities		17.707
Net Current Assets		17.398
MISCELLANEOUS EXPENSES		0.000
TOTAL		39.202

KEY RATIOS

PARTICULARS	21.05.2012
Debt Equity Ratio (Total DEBT/Networth)	1.61
Current Ratio (Current Asset/Current Liability)	1.98

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	Yes
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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last two years	Yes
12]	Profitability for last three years	No
13]	Reasons for variation <> 20%	--------
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	No
27]	Financials, if provided	No
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

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U29100GJ12PTC070865
Name of the company	MARC BEARINGS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Survey No. 34, Plot No. 17, National Highway 8B, Dist. Rajkot, Shapar Veraval, Rajkot – 360002, Gujarat, India
This form is for	Creation of charge
Type of charge	Immovable property Book debts Movable property Floating charge
Particular of charge holder	Dena Bank, Race Course Road Branch, Kishanpara Chowk, Rajkot – 360001, Gujarat, India Email - ro.rajkot@denabank.co.in
Date of instrument Creating the charge	21.06.2012
Amount secured by the charge	Rs. 32.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest For CC: BR+3.55%, i.e.14.25%, For Export Packing Credit: BR+2.30%, i.e. 13.70% up to 270 Days, BR+8.30%, i.e.19% beyond 270 Days & For TL: BR+2.55%+0.50%, i.e 14.75%. (All rates are Sub. to revision) Terms of Repayment Cash Credit: Repayable on Demand. Term Loan against Machinery as per earlier sanction. Margin (I) CC : 25% against stock and 50% against Book Debt. (II) Export Packing Credit cum FBP : (a) Packing Credit - 10% (b) FBP - DA 20% DP - 10% (III) Term Loan : Not Applicable Extent and Operation of the charge The charge being hypothecation and mortgage extends as security in favour of Dena Bank, Race Course Branch, Rajkot for Rs. 32.500 Millions as under together with interest, cost and charges. CC Hypo.-cum- B/D: Rs. 2.500 Millions, Export Packing Credit cum FBP : Rs. 22.500 Millions, and Review Term Loan against Machinery : Rs. 7.500 Millions. Others As per documents executed in favour of charge holder from time to time
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of all stocks of raw materials, goods in process, finished goods, stores & spares, packing materials used for manufacturing etc., both present and future; Hypothecation of plant & machinery and other movable assets, both present & future, acquired out of term loan finance of the charge holder bank; Equitable Mortgage over all that piece and parcel of free hold land adm. 1006.34 Sq. Mts. with building & super structure standing thereon at Plot No. 17, of Shapar, R.S. No. 34, Dist. Rajkot EMG over Plot No. 3 of R.S. No. 34 of Village Shapar, Taluka : Kotda Sangani, Dist. Rajkot, Adm. 877.28 Sq. Mts. or Sq. Yards 1049.22 with standing structure thereon in name of Hardwar Industries. EMG over residential property in name of Smitaben Makadia located at Plot No. 11 of Survey No. 86 of Raiya, Street No. 2, Mombasa Park, Rajkot adm. about 153-4-6 Sq. Yards

Note – the registered office address of the company has been shifted from Shapar Survey No. 34, Plot No. 3, N/H 8B, Gondal Highway, Shapar (Veraval), Rajkot – 360002, Gujarat, India, to current address.

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.54.16
UK Pound	1	Rs.81.74
Euro	1	Rs.70.50

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NLM

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	3
--LEVERAGE	1~10	3
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

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.