MIRA
INFORM REPORT
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Report Date : |
26.07.2008 |
IDENTIFICATION
DETAILS
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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) : |
31.12.2007 |
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Date of Incorporation : |
27.04.1962 |
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Com. Reg. No.: |
12340 |
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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
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MIRA’s Rating : |
Aa |
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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 15000000 |
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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
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Registered
Office : |
Nariman Bhavan, 8th Floor 227, Backbay Reclamation Nariman
Point Mumbai - 400 021 |
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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
: |
Located at:
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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
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Name : |
Mr. Avinash P. Gandhi |
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Designation : |
Chairman |
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Name : |
Mr. Biswarup Dhar |
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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 : |
Mr. Hans-Juergen Goslar |
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Designation : |
Director |
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Name : |
Mr. Dietmar Heinrich |
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Designation : |
Director |
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Name : |
Mr. Frank Huber |
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Designation : |
Director |
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Name : |
Mr. Bernhard Steinruecke |
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Designation : |
Director |
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Name : |
Mr. R. Sampath Kumar |
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Designation : |
Director |
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Name : |
Mr. Yezad S. Kapadia |
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Designation : |
Director |
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Name : |
Mr. Kamlesh C. Tapadar |
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Designation : |
Director |
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Name : |
Mr. Thomas Hetemann |
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Designation : |
Director |
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Name : |
Mr. Moreshwar Garde |
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Designation : |
Director (Nominee of GIC) |
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Name : |
Mr. Kamlesh Tapadar |
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Designation : |
Director (Alternate to Mr. Heinrich) |
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Name : |
Mr. R. Sampath Kumar |
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Designation : |
Director (Alternate to Mr. Huber) |
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Name : |
Mr. Yezad Kapadia |
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Designation : |
Director (Alternate to Mr. Hetmann) |
KEY EXECUTIVES
|
Name : |
Mr. Moreshwar
D. Garde |
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Designation : |
Nominee of QIC |
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Name : |
Mr.
Satish Patel |
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Designation : |
Chief Financial Officer |
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Name : |
Mr.
Raj Sarraf |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2008
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Bodies Corporate |
8529183 |
51.33 |
|
Mutual Funds/ UTI |
2251963 |
13.55 |
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Financial Institutions/ Banks |
1625 |
0.01 |
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Insurance Companies |
374448 |
2.25 |
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Foreign Institutional Investors |
1430833 |
8.61 |
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Bodies Corporate |
1921658 |
11.56 |
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Individual Shareholders holding nominal
share capital up to Rs. 0.100 Million |
1658088 |
9.98 |
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Individual Shareholders holding nominal share
capital in excess of Rs. 0.100 Million |
414636 |
2.50 |
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Trusts |
10100 |
0.06 |
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Non- resident Indians (Repat) |
17734 |
0.11 |
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Clearing members |
7002 |
0.04 |
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Total |
16617270 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing
and Marketing of ball and roller bearings and components. |
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Products : |
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Exports : |
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Countries : |
Germany |
PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Manufactured |
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(i) Ball and
Roller Bearings |
Nos. |
47103000 |
45146713 |
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(ii) Manufactured
Components |
Nos. |
-- |
1428178 |
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Trade $$ |
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Bearings, Components
of Railway |
Nos. |
761562 |
1149.5 |
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Axle Box Housing, Re-Railing Equipment and its components |
Nos. |
-- |
238.0 |
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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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Deloitte
Raskins and Sells, Chartered
Accountants |
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Address : |
Mumbai,
Maharashtra, India |
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Membership : |
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Collaborators : |
Schaeffler Group, Germany |
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Associates/Subsidiaries
: |
(Formerly known as INA Schaeffler KG, Germany)
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Holding
Company: |
FAG Kugelfischer
Georg Schaefer AG, Germany |
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Joint Venture:
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FAG Roller
Bearings Private Limited, India |
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Group Company
: |
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CAPITAL STRUCTURE
As on 31.12.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs. 10 each |
Rs. 200.000 Millions |
Issued Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
16818270 |
Equity Shares |
Rs.10 each |
Rs. 168.200 Millions |
Subscribed & Paid-up Capital
|
No. of Shares |
Type |
Value |
Amount |
|
16617270 |
Equity Shares |
Rs.10 each |
Rs. 166.200 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
166.200 |
166.200 |
166.200 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
3014.800 |
2310.100 |
1649.500 |
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4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
3181.000 |
2476.300 |
1815.700 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
111.900 |
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2] Unsecured
Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING
|
0.000 |
0.000 |
111.900 |
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DEFERRED TAX
LIABILITIES |
66.300 |
61.900 |
78.200 |
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TOTAL
|
3247.300 |
2538.200 |
2005.800 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
1312.300 |
1112.300 |
831.100 |
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Capital work-in-progress
|
103.200 |
259.900 |
239.200 |
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Capital
Advances |
7.400 |
19.800 |
32.700 |
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INVESTMENT
|
12.200 |
26.500 |
27.200 |
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DEFERREX TAX ASSETS
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|
10.100 |
9.900 |
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
|
982.800
|
918.700
|
695.200
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Sundry Debtors
|
1046.700
|
858.200
|
656.000
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Cash & Bank Balances
|
639.300
|
122.900
|
79.800
|
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Other Current Assets
|
13.100
|
2.100
|
3.100
|
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Loans & Advances
|
317.300
|
253.700
|
256.800
|
Total Current Assets
|
2999.200
|
2155.600
|
1690.900
|
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
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Current Liabilities
|
1016.400
|
883.200
|
656.900
|
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Provisions
|
170.600
|
162.800
|
168.300
|
Total Current Liabilities
|
1187.000
|
1046.000
|
825.200
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Net Current Assets
|
1812.200
|
1109.600
|
865.700
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
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TOTAL
|
3247.300 |
2538.200 |
2005.800 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2007 |
31.12.2006 |
31.03.2005 |
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Sales Turnover
|
6413.000 |
5420.400 |
4083.200 |
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Other Income |
103.200 |
108.700 |
68.700 |
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Total Income |
6516.200 |
5529.100 |
4151.900 |
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Profit/(Loss) Before Tax
|
1241.600 |
1107.800 |
677.600 |
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Provision for Taxation
|
446.300 |
370.800 |
180.200 |
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Profit/(Loss) After Tax
|
795.300 |
737.000 |
497.400 |
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Earnings in Foreign Currency : |
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Service income |
66.000 |
69.000 |
27.800 |
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FOB value of exports |
896.300 |
847.800 |
720.100 |
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|
Exchange gain(net) |
0.000 |
0.000 |
8.700 |
|
Total Earnings |
962.300 |
916.800 |
756.600 |
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Imports : |
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|
Raw Materials |
309.600 |
307.100 |
278.900 |
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Products Purchased for sale |
885.200 |
571.400 |
328.300 |
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|
Stores & Spares |
52.400 |
60.100 |
46.800 |
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Capital Goods |
107.800 |
287.200 |
227.000 |
|
Total Imports |
1355.000 |
1225.800 |
881.000 |
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Expenditures :
|
|
|
|
|
|
Manufacturing and other expenses |
5103.700 |
4239.000 |
3297.400 |
|
|
Depreciation / Amortisation |
193.600 |
183.000 |
168.300 |
|
|
Interest(Net) |
[22.700] |
[0.700] |
8.600 |
|
Total Expenditure
|
5274.600 |
4421.300 |
3474.300 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
31.03.2008 1st
Quarter |
|
Sales
Turnover |
|
|
1714.700 |
|
Other
Income |
|
|
22.900 |
|
Total
Income |
|
|
1737.600 |
|
Total
Expenditure |
|
|
1392.600 |
|
Operating
Profit |
|
|
345.000 |
|
Interest |
|
|
[16.900] |
|
Gross
Profit |
|
|
361.900 |
|
Depreciation |
|
|
51.500 |
|
Tax |
|
|
106.700 |
|
Reported
PAT |
|
|
201.700 |
KEY RATIOS
|
PARTICULARS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
Debt
Equity Ratio |
0.00 |
0.03 |
0.04 |
|
Long
Term Debt Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current
Ratio |
2.18 |
1.82 |
1.66 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
2.10 |
2.05 |
1.72 |
|
Inventory
|
7.53 |
7.59 |
7.19 |
|
Debtors |
7.52 |
8.09 |
8.03 |
|
Interest
Cover Ratio |
312.20 |
42.15 |
67.11 |
|
Operating
Profit Margin (%) |
20.15 |
21.30 |
18.72 |
|
Profit
Before Interest and Tax Margin (%) |
17.44 |
18.31 |
15.08 |
|
Cash
Profit Margin (%) |
13.81 |
15.03 |
13.99 |
|
Adjusted
Net Profit Margin (%) |
11.11 |
12.04 |
10.35 |
|
Return
on Capital Employed (%) |
44.53 |
51.50 |
42.54 |
|
Return
on Net Worth (%) |
28.36 |
34.75 |
30.23 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject, 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 and 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.341.400 Millions 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 and
Roller Bearings.The installed capacity of Ball and Roller Bearings has been
increased by 50000(Nos).
Subject 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 Limited for the manufacture of taper roller bearings at a
plant in Pune. Out of the total estimated investment the two FAG companies
Subject and FAG AG are contributing 51%(Jointly) of equity amounting to Rs.54.800
Millions and Rs.13.700 Millions respectively and the balance 49% (Rs.26.900
Millions) 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 and February 2004.Their holdings has gone upto
51.33%.
The company has expanded the installed capacity of Ball and 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
and 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. Despite sluggish demand in Two Wheeler Industry the Company
has realised sales growth of 18% (2006: 32.3%).
The Profit Before Tax (PBT) was higher by 13% (2006: 61.5%).
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENTS:
Indian Bearing market size is estimated at Rs. 54 billion. Approximately 45% of
this demand is met through imports and the balance is met through indigenous products.
In domestic market (without Imports), the sales of the organised bearing
industry in India are estimated at Rs. 24.0 billion. The bearing industry
recorded a growth of 7% during the year 2007 in terms of sales value. Subject
total sales during the year 2007 shot up by 17%. Subject's share in the total
market is around 13%.
The fortunes of the bearing industry in India are linked to the growth of
the automotive industry. Based on declared figures, 2007 was not an impressive
year. While the Passenger Vehicle and Light Commercial Vehicle sales continued
to remain buoyant, the overall automotive industry as such hardly grew. The
growth of Passenger Vehicles including Utility Vehicles was 13.6% during 2007.
While the growth in Light Commercial Vehicle was 17.2%, the overall growth in
commercial vehicle industry was at 9.7%. The two wheeler industries registered
a negative growth of 2.6%. The tractor industry that bounced back in the
previous year too showed a negative trend. 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. The growth of Indian middle class with increasing purchasing power
along with strong growth of economy over a past few years will undoubtedly
accelerate demand from the automotive industry and other sectors like steel,
power and heavy engineering, thus providing a favourable market environment for
the bearing industry.
OPPORTUNITIES AND THREATS:
Opportunities:
The last four years have witnessed impressive rates of industrial growth.
In 2006-07 the industrial growth was a splendid 11.5%, while the rate of growth
of manufacturing was even higher at 12.5%. Though growth of manufacturing has
slightly decreased in FY 07 on account of slackening of consumer durables
sector, the smart growth in capital goods is suggestive of significant addition
to industrial capacity.
Indian economy seems to grow at around 9% in the FY 08. All economic
indicators show that the buoyancy in overall growth trend is expected to
continue in the coming year. Demand outlook for the year 2008 is quite
positive. Subject with its uncompromising commitment to global standards of
excellence and vast experience in Indian market is 'future ready'.
Threats:
Over the last few years, there has been sharp increase in the prices of
steel which forms the basic material for bearing. The overall margins of
bearing manufacturers are under severe pressure.
The peak customs duty on imports in India has progressively declined over
a decade. There is a likelihood of government slashing peak customs duty rates
further in 2008 to fall in line with Asian levels. The cut in duty will make
imports cheaper and resultant increase in import volumes especially from China
and Eastern Europe will intensify of competition for domestic bearing
industry.
India has been globally acknowledged as a high growth economy. The highly
favourable economic outlook has attracted many new global bearing players to
participate in the fast growing Indian market. Besides, most of the existing
leading domestic players are making investments to enhance the production
capacities and benefit from the demand buoyancy.
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 taken by industry to check it.
SEGMENT WISE PERFORMANCE:
The
business of the Company falls under a single segment i.e "Ball/Roller
Bearings and related components" for the purpose of Accounting Standard
AS-17.
OUTLOOK:
There
has been marked change in the way the Indian economy is viewed, both within the
country and in other countries of the world. This is largely due to the
sustained, well directed efforts of the government that have resulted in
globally acclaimed rates of economic growth, increased global competitiveness
of Indian industries, strong macro fundamentals and a highly favourable
economic outlook. In the face of the huge opportunities provided by the
automobile sector, capital goods industry and sizzling Indian economy, the
Company expects build up of demand from various industries, which will provide
growth to the bearing industry.
FINANCE:
RISK AND CONCERNS:
While the overall demand outlook for the year 2008 remains good, the
Company expects that there will be risk on its margins on account of intense
competition from the unorganized sector in the domestic industry and flow of
cheap imports of bearings from China and other low cost countries. To dilute
this risk besides any cyclic fluctuations in bearing demand from Automotive or
various other industries, the Company will focus on technologically advanced
and more profitable products/market segments.
The Company will continue to work in the areas of higher productivity,
better efficiency and cost reductions in order to control costs.
INTERNAL CONTROL SYSTEMS AND THEIR
ADEQUACY:
The Company has an adequate Internal Audit System that cultivates
reliable financial reporting, safeguard assets, encourage adherence to
Management Policies as well as Schaeffler Group Guidelines and Specifications
as far as they are applicable and promote ethical conduct. The strong Internal
Control Systems have been designed in such a way that, not only does it prevent
fraud and misuse of the Company's resources but also protect shareholders'
interest.
The Company has appointed an Audit Committee, which on regular intervals,
in co-ordination with Internal and Statutory Auditors review the adequacy of
Internal Control System within the Company.
The Company has an independent Internal Audit Department. The internal
audit procedures constantly monitor the controls and any feedback directly
reported to the management of the Company. All audit findings are reported in a
structured manner with suggestions and recommendations from the audit
department in consideration of 'Internal' as well as 'Schaeffler Group'
guidelines and procedures. All transactions are authorised as per the
Schaeffler Group's Approval and Signature Guidelines, which are being recorded
and reported in an organised manner.
Based upon the recommendations of Audit Committee, an Annual Audit Plan
(AAP) is prepared by the Internal Audit Department, which is reviewed
periodically by the top management and the Audit Committee.
FINANCE:
The year 2007 has been extremely challenging specially for the Bearing
Industry, which has recorded a growth of 7% much lower than expected (2006:
18%). With this at one side where industry was working hard to maintain the
growth rate, it was tough to snatch the desired margin in the highly
competitive market. Even in such a situation the Company was able to register
growth and crossed the turnover of Rs. 6400.000 Millions but with comparative
fewer margins, which resulted in profit before tax growth of 14%.
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 and 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
Subject is 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.
Subject'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.
Subject 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, they 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.
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 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.42.23 |
|
UK Pound |
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.66.41 |
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
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 |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|