MIRA INFORM REPORT
|
Report
Date : |
21.04.2007 |
IDENTIFICATION DETAILS
|
Name : |
FAG BEARINGS INDIA LIMITED |
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Registered
Office : |
Nariman Bhavan, 8th Floor, 227 Backbay Reclamation,
Nariman Point, Mumbai – 400 021, Maharashtra |
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Country
: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
1962 |
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CIN
No.: [Company
Identification No.] |
L29130MH1962PLC012340 |
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TAN
No.: (Tax
Deduction & Collection Account No.) |
BRDF00097G BRDF00184C |
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PAN
No.: (Permanent
Account No.) |
AAACF3357Q |
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Legal
Form : |
It is a public limited liability company. The company’s shares
are listed on the Stock Exchanges. Subject is a subsidiary of FAG Kugelfischer
Georg Schaefer AG, Germany |
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Line
of Business : |
Manufacturing and Marketing of ball and roller bearings and
components. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Aa |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum
Credit Limit : |
USD
7600000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject is a well established and reputed company having
satisfactory track. Directors are reported as experienced, respectable and
resourceful businessmen. Their trade relations are reported as fair. Payments
are usually correct and as per commitments. The company can be considered good for any
normal business dealings. It can be regarded as a promising business partner
in a medium to long-run. |
LOCATIONS
|
Registered
Office : |
Nariman Bhavan, 8th Floor 227,
Backbay Reclamation Nariman Point Mumbai - 400 021 |
|
Tel.
No.: |
91-22-22022144
/ 362/ 166 |
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Fax
No.: |
91-22-22027022 |
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E-Mail
: |
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Website
: |
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Head
Office & Works : |
Maneja, Vadodara - 390 01 |
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Sales
Offices : |
Chennai, Kolkata, Mumbai, New Delhi, Pune |
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Branches
: |
Located at : Ø Kolkata, West Bengal,
India Tel. No.
91-33-22467602 Fax No.
91-33-22491587 Ø Chennai, Tamil Nadu,
India Tel. No.
91-44-28271712 /28275077 Fax No.
91-44-28279497 Ø Mumbai, Maharashtra,
India Tel. No.
91-22-22022166 / 22022144 Fax No.
91-22-22027022 Ø New Delhi, India Tel. No.
91-11-25726862 / 26730284 Fax No.
91-11-25726327 Ø Pune, Maharashtra,
India Tel. No.
91-20-6691989 / 6122229 |
DIRECTORS
|
Name : |
Avinash P. Gandhi |
|
Designation
: |
Chairman |
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|
Name : |
Damaraju Jagannath |
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Designation
: |
Managing Director |
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|
Name : |
Dr.Vidya Sagar |
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Designation
: |
Director |
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|
Name : |
Hans-Juergen Goslar |
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Designation
: |
Director |
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|
Name : |
Frank Huber |
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Designation
: |
Director |
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|
Name : |
Cornelius Fricke |
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Designation
: |
Director |
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|
Name : |
Guenther Morber |
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Designation
: |
Director |
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|
Name : |
Bernhard Steinruecke |
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Designation
: |
Director |
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|
Name : |
Moreshwar D. Garde |
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Designation
: |
Nominee of QIC |
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Name : |
Sampath Kumar |
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Designation
: |
Alternate to F. Huber |
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Name : |
Yezad S. Kapadia |
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Designation
: |
Alternate to G. Morber |
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Name : |
Kamlesh C.Tapadar |
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Designation
: |
Alternate to C. Fricke |
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Name : |
Hemant R. Shukla |
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Designation
: |
Secretary |
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Name : |
Biswarup Dhar |
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Designation
: |
Managing Director |
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Name : |
Raj K Saraf |
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Designation
: |
Company Secretary |
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|
Name : |
Anton Hammer |
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Designation
: |
Director |
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|
Name : |
Bernhard Steinruecke |
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Designation
: |
Director |
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MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoter's Holding |
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|
|
Foreign
Promoters |
8529183 |
51.33 |
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Non Promoter's Holding |
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Institutional Investors |
|
|
|
Mutual Funds and UTI |
2198316 |
13.23 |
|
Banks, Financial Institution |
1295 |
0.000 |
|
Insurance Companies |
471682 |
2.84 |
|
FII |
1683886 |
10.14 |
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|
|
|
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Others Investors |
|
|
|
Private Corporates Bodies |
804302 |
4.84 |
|
Nominal Share Capital up |
2169821 |
13.05 |
|
Nominal Share Capital in
Excess |
730452 |
4.40 |
|
NRIs/OCBs |
34,572 |
0.21 |
|
Grand
Total |
16617270 |
100 % |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing and Marketing of ball and roller bearings and
components. |
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Products
: |
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PRODUCTION STATUS
|
Particulars |
Unit |
|
Installed Capacity |
Actual Production |
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Manufactured |
Nos. |
|
26381000 |
27237208 |
|
(i) Ball
and Roller Bearings |
Nos. |
|
-- |
929773 |
|
(ii)
Manufactured Components |
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|
|
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|
Trade $$ |
|
|
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|
|
Bearings,
Components of Railway |
Nos. |
|
160281 |
514.4 |
GENERAL INFORMATION
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No. of
Employees : |
980 |
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Bankers
: |
Ø Union Bank of India Ø State Bank of India Ø ICICI Bank Limited Ø HDFC Bank Limited Ø Deutsche Bank |
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Facilities : |
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Banking Relations : |
Good |
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Auditors
: |
A. F. Ferguson & Company Chartered Accountants |
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Associates/Subsidiaries
: |
Ø FAG Bearing Korea Corporation,
Korea Ø FAG Japan Company Limited, Japan Ø FAG Magyarorszag KFT, Hungary Ø Rolamentos FAG Limited, Brazil Ø Schaeffler Brazil LTDA, Brazil Ø FAG Bearing Corporation, Danbury,
U.S.A Ø The Barden Corporation, U.S.A Ø The Barden Corporation, U.K Ø FAG China Company Limited, China Ø INA Schaeffler KG, Germany Ø INA Bearings India Pvt. Limited,
India Ø FAG Bearings Limited., A.C.
Division, Canada Ø FAG Roller Bearings Private
Limited, India Ø (from September 20, 2004) Ø LUK GmbH & Company HG Ø FAG Hanwha Bearing Corporation,
Korea Ø FAG Japan CompanyLimited, Japan Ø FAG Bearing Corporation, Danbury,
U.S.A Ø ROL-Rolamentos Portugueses, S.A. Ø FAG China Company Limited, China Ø The Barden Corporation, U.S.A Ø INA Schaeffler KG, Germany Ø INA Bearings India Pvt. Limited,
India |
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Holding
Company: |
FAG Kugelfischer Georg Schaefer AG, Germany |
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Joint
Venture: |
FAG Roller Bearings Private Limited, India |
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Membership
: |
Confederation of Indian Industry |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
20,000,000 |
Equity Shares |
Rs. 10 each |
Rs. 200.000 millions |
|
|
|
|
|
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
16,818,270 |
Equity Shares |
Rs.10 each |
Rs. 168.200 millions |
|
|
|
|
|
|
16,617,270 |
Equity Shares |
Rs. 10 each |
Rs. 166.200 millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
166.200 |
166.200 |
166.200 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
1649.500 |
1238.100 |
995.700 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
1815.700 |
1404.300 |
1161.900 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
111.900 |
0.400 |
78.900 |
|
|
2]
Unsecured Loans |
0.000 |
0.000 |
169.900 |
|
TOTAL
BORROWING
|
111.900 |
0.400 |
248.800 |
|
|
DEFERRED
TAX LIABILITIES |
0.000 |
90.300 |
95.200 |
|
|
|
|
|
|
|
TOTAL
|
1927.600 |
1495.000 |
1505.900 |
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|
|
|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
831.100 |
807.300 |
882.800 |
|
Capital work-in-progress
|
271.900 |
59.500 |
21.800 |
|
|
Capital Advances |
|
1.400 |
2.800 |
|
|
|
|
|
|
|
INVESTMENT
|
27.200 |
27.200 |
27.200 |
|
DEFERREX TAX ASSETS
|
0.000 |
6.700 |
6.600 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
695.200
|
592.200
|
482.300 |
|
|
Sundry Debtors
|
656.000
|
496.600
|
525.200 |
|
|
Cash & Bank Balances
|
79.800
|
25.800
|
44.700 |
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances
|
269.800
|
179.500
|
158.700 |
Total Current Assets
|
1700.800
|
1294.100 |
1210.900 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
735.100
|
563.400
|
481.000 |
|
|
Provisions
|
168.300
|
137.800
|
165.200 |
Total Current Liabilities
|
903.400
|
701.200
|
646.200 |
|
Net
Current Assets
|
797.400
|
592.900
|
564.700 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
1927.600 |
1495.000 |
1505.900 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.12.2004 |
31.12.2003 |
Sales Turnover
|
4626.500 |
3304.400 |
2742.000 |
|
Other Income |
80.400 |
0.000 |
0.000 |
|
Stock Adjustment |
50.000 |
0.000 |
0.000 |
|
Total
Income |
4756.900 |
3304.400 |
2742.000 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
687.500 |
434.000 |
309.700 |
Provision for Taxation
|
208.600 |
125.200 |
78.100 |
Profit/(Loss) After Tax
|
478.900 |
308.800 |
231.600 |
|
|
|
|
|
Export Value
|
|
451.900 |
407.200 |
|
|
|
|
|
Import Value
|
|
579.700 |
402.3000 |
|
|
|
|
|
Expenditures :
|
|
|
|
|
Cost of Goods Sold |
0.000 |
|
|
|
Manufacturing Expenses |
239.700 |
|
|
|
Administrative Expenses |
431.400 |
|
|
|
Raw Material Consumed |
2193.900 |
|
|
|
Purchases made for re-sale |
0.000 |
|
|
|
Consumption of stores and spares parts |
0.000 |
|
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
2870.400 |
2432.300 |
|
Salaries, Wages, Bonus, etc. |
353.200 |
|
|
|
Managerial Remuneration |
0.000 |
|
|
|
Payment to Auditors |
0.000 |
|
|
|
Interest |
10.400 |
|
|
|
Excise Duty |
543.300 |
|
|
|
Power & Fuel |
109.500 |
|
|
|
Depreciation & Amortization |
168.300 |
|
|
|
Other Expenditure |
19.700 |
|
|
Total Expenditure
|
4069.400 |
2870.400 |
2432.300 |
SUMMARIZED
RESULTS
|
PARTICULARS |
|
|
|
31.12.2006 |
|
|
|
|
|
1st Qtr |
|
Sales Turnover |
|
|
|
5507.300 |
|
Other Income |
|
|
|
21.800 |
|
Total Income |
|
|
|
5529.100 |
|
Total Expenditure |
|
|
|
4239.000 |
|
Operating Profit |
|
|
|
1290.100 |
|
Interest |
|
|
|
12.600 |
|
Gross Profit |
|
|
|
1277.500 |
|
Depreciation |
|
|
|
183.000 |
|
Tax |
|
|
|
374.000 |
|
Reported PAT |
|
|
|
737.000 |
|
Dividend (%) |
|
|
|
400.000 |
KEY
RATIOS
|
PARTICULARS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
|
Debt Equity Ratio |
0.04 |
0.10 |
0.37 |
|
Long Term Debt Equity Ratio |
0.00 |
0.07 |
0.19 |
|
Current Ratio |
1.66 |
1.56 |
1.35 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.72 |
1.43 |
1.23 |
|
Inventory |
7.19 |
6.86 |
6.01 |
|
Debtors |
8.03 |
7.22 |
5.60 |
|
Interest Cover Ratio |
67.11 |
24.46 |
7.81 |
|
Operating Profit Margin (%) |
18.72 |
16.88 |
17.09 |
|
Profit Before Interest and Tax Margin (%) |
15.08 |
12.27 |
11.62 |
|
Cash Profit Margin (%) |
13.99 |
12.98 |
13.05 |
|
Adjusted Net Profit Margin (%) |
10.35 |
8.37 |
7.57 |
|
Return on Capital Employed (%) |
42.54 |
32.75 |
24.27 |
|
Return on Net Worth (%) |
30.23 |
24.57 |
21.73 |
STOCK PRICES
|
Face Value |
Rs. 10.00/- |
|
High |
Rs.612.50/- |
|
Low |
Rs. 597.60/- |
LOCAL AGENCY FURTHER
INFORMATION
HISTORY
FAG
Bearings India Ltd., the Indian subsidiary of German major - FAG Kulgelfishcer
Georg Schafer AG, is into manufacture of ball bearings, cylindrical roller
bearings and spherical roller bearings which are used in Automobile and
Engineerg industries. The company which was incorporated in April 1962 as
Precision Bearings (India) is a leading manufacturer in its area of
operation.
The company which started with technical collaboration with Norma
Hoffman, US has entered into a technical-cum-financial collaboration with FAG
Kugelfischer Georg Schaefer and its associate company GUJ Jaegr in 1966-67.
FAG, Germany, has a 51% stake in the company.
Apart from Ball and Roller(both Cylindrical & Spherical) bearings its
product range also includes taper roller bearings, needle roller bearings. In
the Spherical roller bearing segment the company is the market leader with
around 56% of market share and the company is also has an significant
marketshare of around 35% and 19% in the cylindrical roller bearing and ball
bearing segment respectively. The company caters to OEM market, replacement
market and export market.
The company came out with an Rights Offer in April, 1991, to part-finance
its modernisationa and technology upgradation projects. It has put up a
full-fledged Research and Development unit in a separate new building. It's EOU
(100%) unit set up in collaboration with FAG Kugelfishcer Georg Schaefer,
Germany to produce Cylindrical roller bearings at Vadodara has commenced
production in February 1997.
The company is taking up an quality improvement programme from the year
2000 under which the company has spent Rs.34.14 crores over the last two years
and installed new machines and the rebuilt the other machines.
The company has gone for expansion during the year 2002 in respect of
Ball & Roller Bearings.The installed capacity of Ball & Roller Bearings
has been increased by 50000(Nos).
FAG India along with FAG Kugelfischer Georg Schaefer AG (FAG AG) in
association with the Chadha family has promoted an JV company in the name of
FAG Roller Bearings Private Ltd. for the manufacture of taper roller bearings
at a plant in Pune. Out of the total estimated investment the two FAG companies
FAG India & FAG AG are contributing 51%(Jointly) of equity amounting to
Rs.5.48 cr. and Rs.1.37 Crores respectively and the balance 49% (Rs.2.69 cr.)
would be contributed by Chadha family. The company which was incorporated in
Nov.26, 2001 and commenced production.
Complying with SEBI order,INA and FAG,Germany had made an open offer @
Rs.41.22 including interest.306 shareholders offered 54378 shares in the open
offer and all these shares have been transferred to FAG Kugelfishcher Georg
Schaefer AG,Germany in January & February 2004.Their holdings has gone upto
51.33%.
The company has expanded the installed capacity of Ball & Roller
Bearings during the year 2003 by 3178000(Nos) and with this expansion the total
capacity has been increased to 25228000(Nos).
During the year 2004, the company has increased its installed capacity of
Ball & Roller Bearings by 1153000 (Nos). Ultimately, the total installed
capacity stood as 26381000 (Nos).
FINANCIAL AND OPERATIONAL PERFORMANCE
The Company's sales have been
consistently growing at a rate better than the growth of the bearing industry
in India. For the year 2005, The Company has had a sales growth of 26% (2004:
21%). It was mainly in the imported bearings and Exports. OEM, Aftermarket and
Railways recorded a reasonable growth. Exports of the Company were Rs.720.1
million (2004: Rs. 424.7 million).
Gross Operating Profit increased by 42.2% (2004: 19.7%). Profit Before
Tax (PBT) was higher by 58.4% (2004: 40.1%) and Profit After Tax (PAT) was
higher by 55.1% (2004: 33.3%).
The intense competitive pressure on prices and margins continued this year
also. The Company continued its emphasis on the Aftermarket, imported bearings
business and focussed product mix planning. The production of bearings went up
by 18.5% over the last year (2004: 6.4%).
During the year the Company was audited for recertification as per ISO/TS
16949 by TUV-Sued and assessed for compliance to the newly issued 'Schaeffler
Management Handbook' by Schaeffler Group. There was also a certification audit
by M/s. INTECHNICA, Germany for assessing compliance to ISO 14001. All the
audits were successful. In addition, Company has implemented important
environment and safety related measures like 'Rain Water Harvesting',
installation of 'Leak Detection Systems' for hazardous gas storage, etc.
DIVIDEND
Directors recommend for your approval dividend for the year ended
December 31, 2005 at the rate of Rs. 3.50 (2004: Rs. 3.50) per equity share
amounting to Rs. 58.2 million (2004: Rs 58.2 million).
The Company will pay the income tax on dividend as per the provisions of
the Income-Tax Act.
FINANCE
During the year, with tight controls on inventories and receivables and
effective financial management, the capital employed was utilized judiciously.
No long term loan was taken and credit facilities from the banks for working
capital were sparingly utilized at the minimum cost which resulted into
positive net interest income.
MANAGEMENT DISCUSSION AND ANALYSIS
(a) Industry structure and developments
Indian Bearing market size is estimated at Rs. 32 billion. Approximately
one third of this demand is met through imports and the balance is met through
indigenous products. The sales of the organised bearing industry in India are
estimated at Rs. 19.0 billion. The bearing industry experienced a significant
growth of 16 to 17% during the year 2005. FAG India sales during the year 2005
shot up by 26% much higher than the growth in the industry. FAG India's share
in the total market is around 14%.
The fortunes of the bearing industry in India are linked to the growth of
the automotive industry. Based on declared sales 2005 was consecutively a good
year for the automotive industry; the growth is estimated at over 14%. The
Passenger Cars including Utility Vehicles sales were not too impressive
registering a growth of approx. 6%. The overall growth in commercial vehicle
industry is estimated to remain at a healthy 13%. The sales growth of two
wheeler industries especially motorcycle, (which had been growing at a faster
pace for the past few years) stabilized at around 15%. The tractor industry
that faced one of the worst years in recent times is clearly on a revival path.
The demand from Railways - another important market segment - remained flat
during the year.
OEM industries, such as two-wheeler, are facing price competition in
their own markets and continue to exert price pressure on the local bearing
suppliers. In face of the accelerated demand from the automotive industry and
other sectors like steel, power & heavy engineering due to general economic
revival, the market environment is quite favorable for the bearing
industry.
(b) Opportunities and threats
Indian economy seems to grow at 7 to 7.5% supported by a smart growth in
manufacturing and services sectors. Demand outlook for the year 2006 is quite
positive.
The industry has to be on guard against the menace of counterfeit (i.e.
spurious bearings) which has increased over the last few years, in spite of
serious efforts to check it.
Company Profile
FAG
Bearings India Ltd., the Indian subsidiary of German major - FAG Kulgelfishcer
Georg Schafer AG, is into manufacture of ball bearings, cylindrical roller
bearings and spherical roller bearings which are used in Automobile and
Engineerg industries. The company which was incorporated in April 1962 as Precision
Bearings (India) is a leading manufacturer in its area of operation.
The company which started with technical collaboration with Norma
Hoffman, US has entered into a technical-cum-financial collaboration with FAG
Kugelfischer Georg Schaefer and its associate company GUJ Jaegr in 1966-67.
FAG, Germany, has a 51% stake in the company.
Apart from Ball and Roller(both Cylindrical & Spherical) bearings its
product range also includes taper roller bearings, needle roller bearings. In
the Spherical roller bearing segment the company is the market leader with
around 56% of market share and the company is also has an significant
marketshare of around 35% and 19% in the cylindrical roller bearing and ball
bearing segment respectively. The company caters to OEM market, replacement
market and export market.
The company came out with an Rights Offer in April, 1991, to part-finance
its modernisationa and technology upgradation projects. It has put up a
full-fledged Research and Development unit in a separate new building. It's EOU
(100%) unit set up in collaboration with FAG Kugelfishcer Georg Schaefer,
Germany to produce Cylindrical roller bearings at Vadodara has commenced
production in February 1997.
The company is taking up an quality improvement programme from the year
2000 under which the company has spent Rs.34.14 crores over the last two years
and installed new machines and the rebuilt the other machines.
The company has gone for expansion during the year 2002 in respect of
Ball & Roller Bearings.The installed capacity of Ball & Roller Bearings
has been increased by 50000(Nos).
FAG India along with FAG Kugelfischer Georg Schaefer AG (FAG AG) in
association with the Chadha family has promoted an JV company in the name of
FAG Roller Bearings Private Ltd. for the manufacture of taper roller bearings
at a plant in Pune. Out of the total estimated investment the two FAG companies
FAG India & FAG AG are contributing 51%(Jointly) of equity amounting to
Rs.5.48 cr. and Rs.1.37 Crores respectively and the balance 49% (Rs.2.69 cr.)
would be contributed by Chadha family. The company which was incorporated in
Nov.26, 2001 and commenced production.
Complying with SEBI order,INA and FAG,Germany had made an open offer @
Rs.41.22 including interest.306 shareholders offered 54378 shares in the open
offer and all these shares have been transferred to FAG Kugelfishcher Georg
Schaefer AG,Germany in January & February 2004.Their holdings has gone upto
51.33%.
The company has expanded the installed capacity of Ball & Roller
Bearings during the year 2003 by 3178000(Nos) and with this expansion the total
capacity has been increased to 25228000(Nos).
During the year 2004, the company has increased its installed capacity of
Ball & Roller Bearings by 1153000 (Nos). Ultimately, the total installed
capacity stood as 26381000 (Nos).
FIXED ASSETS
Ø Intangible assets
Ø Software upgradation - acquired
Ø Lumpsum fees for technical knowhow
Ø Tangible assets
Ø Land-freehold
Ø
Buildings
and roads
Ø Plant and Machinery
Ø Tubewells
Ø Electrical Installations
Ø Furniture, fittings & equipment
Ø Motor vehicles
It
is in trade terms with :
Ø S. K. Industries
Ø Aval Engineering Works
Ø Amit Engineering
Ø Evergreen Engineers
Ø Pooja Industries
Ø Sumit Packaging
Ø Vijay Enterprise
Ø Kansara Brothers
Ø Ambica Industries
Ø Raju Engineering
Ø Precision Products
AS PER WEBSITE
FAG Bearings India Limited, a member company of FAG group of Germany - is a leading player in the Indian Bearing industry.
The company manufactures a very wide range of
bearings conforming to the stringent international quality standards.
FAG India's manufacturing plants, located at Vadodara,
Gujarat, feature the most advanced manufacturing technology. The company is
certified to ISO/TS 16949, ISO 9001, and ISO 14001 standards.
FAG India is a leading OEM supplier to the automotive industry, mechanical and electrical engineering industry, besides the Railways.
In 1997, FAG Bearing India Limited set up the country's
first 100% EOU for bearings. Bearings produced at the EOU plant have gained
ready acceptance and recognition of customers located in Europe, USA, Asia and
Africa.
FAG's joint venture company - FAG Roller Bearings Private Limited - produces
taper roller bearings at Chakan near Pune.
1962 Incorporated as Precision Bearings India Limited.
1986 The company name changed to FAG Precision Bearings Limited.
1993 Became first Indian Bearing company to achieve ISO 9001 certification.
1997 EOU Project for Cylindrical roller bearings inaugurated.
1998 Became first Indian Bearing company to achieve QS 9000 certification.
1999 Change in name to FAG Bearings India Limited. The company achieved ISO 14001 certification.
2000 Set up India's first production facilities to produce hub bearings.
2001 Launched Joint Venture company FAG Roller Bearings Private Limited to manufacture taper roller bearings.
FAG believes that only by engaging in continuous process and product oriented innovation, will the company succeed in the future. Therefore, to improve its position in the bearing industry, where the competition is stiff, FAG implemented Continuous Improvement Process (CIP), popularly known as CIP-culture.
CIP is a concept based on a continuous self-sustaining, learning and improvement process.
The
CIP supports FAG on its course to becoming a high performance organization and
ensures that the best practices are implemented in all areas of operations.
The
CIP helps step up the pace of the optimization process geared to achieve the
defined goals.
CIP
makes FAG quicker and flexible. With CIP program, we can recognize target
deviations even more quickly and take immediate counter measures.
The
company launched the program "CIP for Production" in 1998, giving
each of the employees the freedom to think and try new ideas. In addition, the
company launched the program "CIP for Sales" and "CIP for
Service" in 1999 and 2000 respectively.
In order that FAG Bearings India Limited is supplied the best quality material, the company follows a very stringent three-stage process for approval of any steel supplier. The same includes :
Product approval (Both by FAG Bearings India Limited and FAG-Germany).
Quality system approval (By FAG Bearings India Limited).
Process approval (Jointly by FAG Bearings India Limited and FAG-Germany).
After successful approval of the above, the supplier
should also be in `A' (Very good) category in terms of both the vendor quality
and delivery rating evaluation done by FAG Bearings India Limited every three
months.
Hence, FAG Bearings India Limited requires that any
material supplied to FAG Bearings India Limited be strictly in accordance with
FAG Bearings India Limited guidelines.
For details on FAG Bearings India Limited specifications
and guidelines on their materials, a supplier may contact the Materials
Management department, FAG, India.
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
records 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 records 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. 40.78 |
|
UK Pound |
1 |
Rs. 81.79 |
|
Euro |
1 |
Rs. 55.66 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP
CAPITAL |
1~10 |
8 |
|
OPERATING
SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT
LINES |
1~10 |
8 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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
|
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 |
Unfavourable & favourable factors carry similar weight
in credit consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
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 |