MIRA INFORM REPORT

Report No. :	334613
Report Date :	01.08.2015

IDENTIFICATION DETAILS

Name :	NSK-ABC BEARINGS PRIVATE LIMITED (w.e.f. 01.08.2014)
Formerly Known As :	NSK-ABC BEARINGS LIMITED (w.e.f. 30.03.2007) NSK BEARINGS INDIA LIMITED
Registered Office :	Plot No. A2, SIPCOT Growth Centre, Oragadam, Mathur Village, Sriperumbudur Taluk, Chennai – 602105, Tamilnadu
Tel. No.:	91-44-27143000
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	02.03.2006
Com. Reg. No.:	18-059088
Capital Investment / Paid-up Capital :	Rs. 5000.000 Million
CIN No.: [Company Identification No.]	U29130TN2006PTC059088
TAN No.: [Tax Deduction & Collection Account No.]	CHEN05612F
PAN No.: [Permanent Account No.]	AACCN2689K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Auto Components.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 11000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “NSK LIMITED” JAPAN It is an established company incorporated during the year 2006 having a moderate track record. The company has incurred some accumulated losses during FY 2015. However, Balance sheet of the company is totally debt free. Trade relations are reported as fair. Business is active. Payment terms 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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 31-03-2013.

INFORMATION DECLINED

Management non cooperative

LOCATIONS

Registered Office :	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 raajaraam@nsk.com

DIRECTORS

As on 22.07.2014

Name :	Toshihiro Uchiyama
Designation :	Director
Address :	6-6-10, Yatsu, Narashino, Chiba – 275-0266, Japan
Date of Birth/Age :	28.11.1958
Qualification :	Graduate
Date of Appointment :	30.08.2013
DIN No.:	06444925
Name :	Mr. Tsutomu Komori
Designation :	Director
Address :	878-6, Hiramatsucho Ustunomiya, Japan 3210931
Date of Birth/Age :	17.12.1951
Qualification :	Graduate
Date of Appointment :	22.07.2010
DIN No.:	02799703
Name :	Mr. Pradip Manubhai Patel
Designation :	Director
Address :	318, Samudra Mahal, Dr. Annie Besant Road, Worli, Mumbai – 400 016, Maharashtra, India
Date of Birth/Age :	05.11.1947
Qualification :	Graduate
Date of Appointment :	10.07.2007
DIN No.:	00012138
Name :	Mr. Tanuj Manubhai Patel
Designation :	Director
Address :	Turf View, A Wing, Nehru Planetorium Road, Worli, Mumbai – 400 016, Maharashtra, India
Date of Birth/Age :	07.12.1953
Qualification :	Graduate
Date of Appointment :	10.07.2007
DIN No.:	00016788
Name :	Mr. Akitoshi Ichii
Designation :	Director
Address :	Flat No. B1, MLS Apartments 9, Dr. B. Narssimhan Road, 2^nd Street, T. Nagar, Chennai – 600 017, Tamilnadu, India
Date of Birth/Age :	08.05.1963
Qualification :	Graduate
Date of Appointment :	25.09.2012
DIN No.:	05336693
Name :	Mr. Natarajan Lakshminarayanan
Designation :	Director
Address :	34, Fourth Trust Cross Street, Mandavelli, Chennai – 600 028, Tamilnadu, India
Date of Birth/Age :	25.11.1964
Date of Appointment :	02.03.2006
DIN No.:	00008692
Name :	Mr. Ajit Krishnan
Designation :	Additional Director
Address :	Unit No.1, 17, Arch Bishop Math, IAS Avenue, Boat Club Road, R.A. Puram, Chennai – 600 028, Tamilnadu, India
Date of Birth/Age :	12.11.1958
Date of Appointment :	27.07.2014
DIN No.:	01630599
Name :	Mr. Hisaya Tabuchi
Designation :	Managing director
Address :	5-F, Kartic Dev Apartment, 17, Sundararrjan Street, Abhiramapuram – 600018, Chennai, India
Date of Birth/Age :	01.05.1965
Date of Appointment :	01.04.2014
DIN No. :	06805381

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 22.07.2014

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

Equity Share Break up (Percentage of Total Equity)

As on 22.07.2014

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 and Supplier of Auto Components.

Products :

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

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

Information declined by the management

Bankers :

Bank Name	Not Divulged
Branch	Not Divulged
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Auditors :
Name :	S.R. Batliboi and Associates LLP Chartered Accountants
Address :	6th & 7^th Floor, "A" Block, Chennai, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	ACHFS9118A
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	· NSK India Sales Company Private Limited, India NSK China Investment Co. Limited NSK Bearings Manufacturing (Thailand) Co. Limited NSK APTC (Thailand) Co. Limited, Thailand NSK International (Singapore) Pte. Limited, Singapore NSK Chugai, Limited NSK Network Systems and Co. Limited, Japan Amatsuji Steel Ball Mfg. Co. Limited NSK Korea Company Limited PT.AKS Precision Ball Indonesia, Indonesia Changshu NSK Needle Bearing Co. Limited Kunshan NSK Company Limited NSK Asia Pacific Technology Centre (Thailand) Company Limited NSK Europe Limited NSK Steering Systems Co. Limited NSK Streering Systems America PT. NSK Indonesia Rane NSK Steering Systems Limited Siam NSK Steering Systems Co. Limited
Holding Company :	NSK Limited, Tokyo, Japan

CAPITAL STRUCTURE

As on 22.07.2014

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

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

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	5000.000	5000.000	5000.000
(b) Reserves & Surplus	(995.144)	(971.801)	(1028.824)
(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)	4004.856	4028.199	3971.176
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	6.145	3.741	3.051
Total Non-current Liabilities (3)	6.145	3.741	3.051
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	314.883	234.648	327.761
(c) Other current liabilities	39.752	25.030	37.370
(d) Short-term provisions	4.565	2.977	2.682
Total Current Liabilities (4)	359.200	262.655	367.813
TOTAL	4370.201	4294.595	4342.040
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2226.786	2317.992	2461.021
(ii) Intangible Assets	0.000	1.988	4.050
(iii) Capital work-in-progress	93.145	90.761	60.131
(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	317.687	83.953	53.050
(e) Other Non-current assets	15.821	15.621	16.043
Total Non-Current Assets	2653.439	2510.315	2594.295
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	736.410	483.082	655.359
(c) Trade receivables	322.633	303.698	376.195
(d) Cash and cash equivalents	527.239	695.047	351.553
(e) Short-term loans and advances	106.763	292.194	352.788
(f) Other current assets	23.717	10.259	11.850
Total Current Assets	1716.762	1784.280	1747.745
TOTAL	4370.201	4294.595	4342.040

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Sales and Operating Revenue	2531.670	2345.980	1245.844
	Other Income	71.380	49.120	(166.113)
	TOTAL (A)	2603.050	2395.100	1079.731
Less	EXPENSES
	Cost of Materials Consumed			1232.966
	Purchases of Stock-in-Trade			0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade			(236.658)
	Employees benefits expense			99.599
	Expenditure on production, transportation			(0.962)
	Other expenses			211.567
	TOTAL (B)	2621.720 (Including Depreciation and Financial Expenses)	2338.080 (Including Depreciation and Financial Expenses)	1306.512
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)			(226.781)
Less	FINANCIAL EXPENSES (D)			40.063
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			(266.844)
Less/ Add	DEPRECIATION/ AMORTISATION (F)			108.932
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(18.670)	57.020	(375.776)
Less	TAX (H)	0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	(18.670)	57.020	(375.776)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	350.470	213.130	21.150
	TOTAL EARNINGS	350.470	213.130	21.150
	Earnings / (Loss) Per Share (Rs.)	0.03	0.11	-0.13

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flow from operating activity	(37.440)	417.518	13.424

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	(0.74)	2.43	(30.16)
Operating Profit Margin (PBIDT/Sales)	(%)	NA	NA	(18.20)
Return on Total Assets (PBT/Total Assets}	(%)	(0.44)	1.36	(8.78)
Return on Investment (ROI) (PBT/Networth)		0.00	0.01	(0.09)
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		4.78	6.79	4.75

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	5000.000	5000.000	5000.000
Reserves & Surplus	(1028.824)	(971.801)	(995.144)
Net worth	3971.176	4028.199	4004.856
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1245.844	2345.980	2531.670
		88.304	7.915

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1245.844	2345.980	2531.670
Profit	(375.776)	57.020	(18.670)
	(30.16%)	2.43%	(0.74%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	No
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

NOTE: Registered office of the company has been shifted from No. 56, First Avenue Shastri Nagar, Chennai – 600020, Tamilnadu to the present address w.e.f. 01.12.2008

FINANCIAL PERFORMANCE

Sales (net of Excise Duty) during the year ended 31st March 2015 were Rs.2532.000 Million as against Rs.2346.000 Million in the previous year.

Despite the increased top-line in FY 2014-15, the Company faced challenges towards increasing steel prices, continuous pressure on the pricing and weak demand. However, with the new stable Indian government and also the positive outlook on the economy supported the marginal recovery in domestic automotive sector which helped the company to achieve a moderate top-line growth. Amid challenging times, recently there has been an uptick in the volumes in automotive sector with the pick-up in industrial activity and infrastructure spending planned over the next two-three years.

The company has also taken steps to increase the export volume to Rs.350.000 Million from Rs.213.000 Million in the previous year to circumvent the volume pressure in the domestic market. With the support of our customers, suppliers & employees, we were able to maintain and achieve the targeted volumes.

During the year, the Company’s sales and operating revenues improved marginally over the previous year. The net loss was Rs.18.670 Million as against the profit of Rs.57.020 Million in the previous year.

INDEX OF CHARGES : NO CHARGES EXIST FOR THE COMPANY

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Factory

· Office Equipment

· Furniture and Fixture

· 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.63.81
UK Pound	1	Rs.99.15
Euro	1	Rs.69.31

INFORMATION DETAILS

Analysis Done by :	TRI
Report Prepared by :	SUJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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		33

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.