MIRA INFORM REPORT

Report Date :

30.12.2014

IDENTIFICATION DETAILS

Name :	NSK INDIA SALES COMPANY PRIVATE LIMITED

Registered Office :	6^th Floor, Bannari Amman Towers, No. 29, Dr. Radhakrishnan Salai, Mylapore, Chennai - 600004, Tamilnadu

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	24.07.2007

Com. Reg. No.:	18-064307

Capital Investment / Paid-up Capital :	Rs. 2000.000 Millions

CIN No.: [Company Identification No.]	U29130TN2007PTC064307

TAN No.: [Tax Deduction & Collection Account No.]	CHEN06090A

PAN No.: [Permanent Account No.]	AACCN5663R

Legal Form :	Private Limited Liability Company

Line of Business :	Trading and Marketing of bearings and related products under brand name NSK.

No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (30)

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 is an established company having moderate track record. The rating is constrained on account of some accumulated losses incurred by the company. However, trade relations are reported as fair. Business is active. Payments term are reported to be 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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

NOT AVAILABLE

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 31-03-2014.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-44-28479600)

LOCATIONS

Registered Office :	6^th Floor, Bannari Amman Towers, No. 29, Dr. Radhakrishnan Salai, Myla Pore, Chennai - 600004, Tamilnadu.
Tel. No.:	91-44-28479600
Fax No.:	91-44-28479601
E-Mail :	hemachandran@nsk.com natarajan@nsk.com
Website :	www.nsk.com

Branch Office :	68.30 KM National Highway – 8, Vill, Kapriwas, Dharuhera, Rewari, Haryana, India

DIRECTORS

AS ON 22.07.2014

Name :

Hidemichi Okuda

Designation :

Director

Address :

Flat No B1, MLS Apartments 26/2 (Old/9 (New), Dr. B Narsimhan Road, 2nd Street, T Nagar, Chennai-600017, Tamil Nadu, India

Date of Birth/Age :

06.06.1954

Date of Appointment :

30.09.2011

DIN No.:

03617126

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29130TN2007PTC064307	NSK INDIA SALES COMPANY PRIVATE LIMITED	Director	25-09-2012	30-09-2011	Active	NO

Name :

Mr. Akitoshi Ichii

Designation :

Director

Address :

Flat No B1, MLS Apartments 26/2 (Old) / 9 (New), Dr. B Narssimhan Road, 2^nd Street, T Nagar, Chennai-600017, Tamilnadu, India

Date of Birth/Age :

08.05.1963

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	U29130TN2006PTC059088	NSK-ABC BEARINGS Private 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. Ajit Krishnan

Designation :

Director

Address :

Unit No.1, 17, Arch Bishop Math, IAS Avenue, Boat Club Road, RA Puram, Chennai - 600028, Tamilnadu, India

Date of Birth/Age :

12.11.1958

Date of Appointment :

11.11.2013

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	U29130TN2006PTC059088	NSK-ABC BEARINGS Private Limited	Director	22-07-2014	29-10-2013	-	Active	NO
3	U29130TN2007PTC064307	NSK INDIA SALES COMPANY PRIVATE LIMITED	Director	22-07-2014	11-11-2013	-	Active	NO

Name :

Katsumi Kobayashi

Designation :

Director

Address :

2-5-32, Higashi, Hanyu, Saitama, Japan

Date of Birth/Age :

25.12.1960

Date of Appointment :

11.11.2013

DIN No. :

06737635

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29130TN2007PTC064307	NSK INDIA SALES COMPANY PRIVATE LIMITED	Director	22-07-2014	11-11-2013	Active	NO

Name :

Masahide Matsubara

Designation :

Director

Address :

6-4-5, Minamiaoyama, Minato-ku, Tokyo, Tokyo, Japan

Date of Birth/Age :

24.10.1953

Date of Appointment :

11.11.2013

DIN No. :

06737636

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	22-07-2014	11-11-2013	-	Active	NO

Name :

Mr. Toshihiro Uchiyama

Designation :

Director

Address :

6-16-10, Yatsu Narashino, Chiba - 2750266

Date of Birth/Age :

28.11.1958

Date of Appointment :

10.12.2012

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	Company/ LLP Status	Defaulting status
1	U29130TN2007PTC064307	NSK INDIA SALES COMPANY PRIVATE LIMITED	Director	30-08-2013	10-12-2012	Active	NO
2	U29130TN2006PTC059088	NSK-ABC BEARINGS Private 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

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 22.07.2014

Names of Shareholders	No. of Shares	Percentage of Holding
NSK Limited, Japan	199980000	99.99
NSK International (Singapore) Pte. Limited, Singapore	20000	0.01
Total	200000000	100.00

AS ON 22.07.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trading and Marketing of bearings and related products under brand name NSK.

Brand Name :	“NSK”


Agencies Held :	--

Exports :	--

Imports :	--

Terms :	--

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	NOT DIVULGED
Name of the Person (with Designation):
Contact Number:
Since How Long Known:
Maximum Limit Dealt:
Experience :
Remarks :

Customers :

Reference:	NOT DIVULGED
Name of the Person (with Designation):
Contact Number:
Since How Long Known:
Maximum Limit Dealt:
Experience :
Remarks :

No. of Employees :

Not Divulged

Bankers :

Bank Name:	NOT DIVULGED
Branch:
Name of the Person (with Designation):
Contact Number:
Name of Account Holder:
Account Number:
Account Since (Date/ Year of A/c Opening):
Average Balance Maintained (Optional):
Credit Facilities Enjoyed (CC/OD/Term Loan):
Account Operation:
Remarks:

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Long-term maturities of finance lease obligations	0.000	3.350
Total	0.000	3.350

Banking Relations :	--

Auditors :
Name :	S.R. Batliboi and Associates LLP Chartered Accountants
Address :	6^th & 7^th Floor, "A" Block, Tidel Park, No.4, Rajiv Gandhi Salai, Taramani, Chennai – 600113, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	ACHFS9118A

Holding Company :	NSK Limited, Japan

Fellow Subsidiaries :	· NSK Singapore (Private) Limited, Singapore · NSK International (Singapore) Pte Limited, Singapore · NSK Limited, Japan - India Branch office, India · NSK Asia Pacific Technology Centre (Thailand) Co Limited, Thailand · NSK ABC Bearings Limited, India · Kunshan NSK Co. Limited, China · NSK Korea Co. Limited, Korea · NSK Corporation, USA · PT NSK Indonesia, Indonesia · NSK Bearings (Thailand ) Co. Limited, Thailand · NSK Bearings Manufacturing (Thailand) Co. Limited, Thailand · NSK Australia Pty Ltd, Australia · NSK Bearings New Zealand Limited, New Zealand · NSK Bearings (Malaysia) Sdn. Bhd. · NSK Vietnam Co, Limited · NSK Europe Limited · NSK Canada Inc. · NSK Deutschland Gmbh · NSK(China) Investment Co. Limited, China · NSK Brasil Limited · Suzhou NSK Bearings Co Limited, China · HEIFEI NSK Co. Limited · NSK Chugai Limited

CAPITAL STRUCTURE

AS ON 22.07.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

200,000,000	Equity Shares	Rs.10/- each	Rs. 2000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

200,000,000	Equity Shares	Rs.10/- each	Rs. 2000.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2000.000	2000.000	100.000
(b) Reserves & Surplus	(471.290)	(564.152)	(337.667)
(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)	1528.710	1435.848	(237.667)

(3) Non-Current Liabilities
(a) long-term borrowings	0.000	3.350	0.041
(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	0.855	0.000	0.000
Total Non-current Liabilities (3)	0.855	3.350	0.041

(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	200.000
(b) Trade payables	281.833	466.272	1579.596
(c) Other current liabilities	13.224	39.231	13.775
(d) Short-term provisions	1.657	1.235	0.126
Total Current Liabilities (4)	296.714	506.738	1793.497

TOTAL	1826.279	1945.936	1555.871

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	10.970	15.191	18.177
(ii) Intangible Assets	0.153	0.187	0.000
(iii) Capital work-in-progress	0.000	0.000	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	15.141	24.129	20.154
(e) Other Non-current assets	0.588	2.385	2.104
Total Non-Current Assets	26.852	41.892	40.435

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	501.250	578.754	740.801
(c) Trade receivables	522.390	687.403	532.427
(d) Cash and cash equivalents	671.131	508.876	81.640
(e) Short-term loans and advances	69.106	93.238	108.372
(f) Other current assets	35.550	35.773	52.196
Total Current Assets	1799.427	1904.044	1515.436

TOTAL	1826.279	1945.936	1555.871

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income		2632.967	2124.652
		Other Income		56.588	0.918
		TOTAL	2714.974	2689.555	2125.570

Less	EXPENSES
		TOTAL	2595.412	2908.013	2417.252

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		119.562	(218.458)	(291.682)

Less/ Add	DEPRECIATION/ AMORTISATION		8.003	8.027	6.581

	PROFIT/ (LOSS) BEFORE TAX		111.559	(226.485)	(298.263)

Less	TAX		18.696	0.000	0.000

	PROFIT/ (LOSS) AFTER TAX		92.863	(226.485)	(298.263)

	EARNINGS IN FOREIGN CURRENCY
		Commission income		12.358	42.770
		Export Sales		246.069	13.453
	TOTAL EARNINGS		NA	258.427	56.223

	Earnings / (Loss) Per Share (Rs.)		0.46	(1.32)	(29.83)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	6.11	(11.64)	(19.17)

Return on Investment (ROI) (PBT/Networth)		0.07	(0.16)	1.25

Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	(0.84)

Current Ratio (Current Asset/Current Liability)		6.06	3.76	0.84

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	100.000	2000.000	2000.000
Reserves & Surplus	(337.667)	(564.152)	(471.290)
Net worth	(237.667)	1435.848	1528.710

long-term borrowings	0.041	3.350	0.000
Short term borrowings	200.000	0.000	0.000
Total borrowings	200.041	3.350	0.000
Debt/Equity ratio	(0.842)	0.002	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	2125.570	2689.555	2714.974
		26.533	0.945

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	2125.570	2689.555	2714.974
Profit/Loss	(297.345)	(169.897)	92.863
	(13.99%)	(6.32%)	3.42%

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	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

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

CORPORATE INFORMATION

The Company was incorporated on July 24, 2007. The Company is a subsidiary of NSK Limited, Japan and is primarily engaged in the business of trading and marketing bearings and related products under brand name NSK in India. NISCO commenced its trading activity in April 2008.

FIXED ASSETS

Tangible Assets

· Leasehold Improvements

· Plant and Machinery

· Office Equipment

· Furniture and Fixtures

· Computer

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 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.63.65
UK Pound	1	Rs.99.14
Euro	1	Rs.77.60

INFORMATION DETAILS

Information Gathered by :	GYT

Analysis Done by :	DIV

Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.