MIRA INFORM REPORT

Report Date :

29.01.2011

IDENTIFICATION DETAILS

Name :	FAG BEARINGS INDIA LIMITED

Registered Office :	Nariman Bhavan, 8^th Floor, 227 Backbay Reclamation, Nariman Point, Mumbai-400 021, Maharashtra

Country :	India

Financials (as on) :	31.12.2009

Date of Incorporation :	27.04.1962

Com. Reg. No.:	11-12340

CIN No.: [Company Identification No.]	L29130MH1962PLC012340

TAN No.: [Tax Deduction & Collection Account No.]	BRDF00097G BRDF00184C

PAN No.: [Permanent Account No.]	AAACF3357Q

Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.

Line of Business :	Manufacturing and Marketing of ball and roller bearings and components.

RATING & COMMENTS

MIRA’s Rating :

A (65)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 18000000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well established and reputed company having fine track. Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessmen. Their trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

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 – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

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

LOCATIONS

Registered Office :	Nariman Bhavan, 8^th Floor 227, Backbay Reclamation Nariman Point Mumbai -400 021, Maharashtra, India
Tel. No.:	91-22-22022144 / 362/ 166
Fax No.:	91-22-22027022
E-Mail :	fagmum@satyam.net.in shuklah@fag.co.in muralidharan.nair@schaeffler.com raj.sarraf@schaeffler.com
Website :	http://www.fag.co.inc

Head Office and Works :	P.O., Maneja, Vadodara-390 013, Gujarat, India
Tel. No.:	91-265-6602000/2004
Fax No.:	91-265-2638804
E-Mail :	raj.sarraf@schaeffler.com

Sales Offices :	Located at: Bangalore Chennai Kolkata Mumbai New Delhi Pune Ø Coimbatore Ø Hyderabad Ø Udaipur Ø Jamshedpur

Branches :	Located at : Ø Kolkata Ø Chennai Ø Mumbai Ø New Delhi Ø Pune

DIRECTORS

As on 31.12.2009

Name :	Mr. Avinash Gandhi
Designation :	Director

Name :	Mr. Rajendra Anandpara
Designation :	Managing Director

Name :	Mr. Bernhard Steinuecke
Designation :	Director

Name :	Mr. Bruno Krauss
Designation :	Director

Name :	Dr. Vidya Sagar
Designation :	Director

Name :	Mr. Frank Huber
Designation :	Director

Name :	Mr. Wolfgang Dangel
Designation :	Director

Name :	Mr. Moreshwar Garde
Designation :	Director

Name :	Mr. Kamlesh Tapadar
Designation :	Director (Alternate to Mr. Krauss)

Name :	Mr. R. Sampath Kumar
Designation :	Director (Alternate to Mr. Huber)

Name :	Mr. Yezad Kapadia
Designation :	Director (Alternate to Mr. Dangel)

KEY EXECUTIVES

Name :	Mr. Satish Patel
Designation :	Chief Financial Officer

Name :	Mr. Raj Sarraf
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2010

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	8,529,183	51.33
Sub Total	8,529,183	51.33
Total shareholding of Promoter and Promoter Group (A)	8,529,183	51.33
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1,807,312	10.88
Financial Institutions / Banks	1,585	0.01
Insurance Companies	304,218	1.83
Foreign Institutional Investors	2,295,053	13.81
Sub Total	4,408,168	26.53
(2) Non-Institutions
Bodies Corporate	1,736,600	10.45
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1,549,251	9.32
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	363,192	2.19
Any Others (Specify)	30,876	0.19
Trusts	603	-
Non Resident Indians	21,349	0.13
Clearing Members	8,924	0.05
Sub Total	3,679,919	22.15
Total Public shareholding (B)	8,088,087	48.67
Total (A)+(B)	16,617,270	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	16,617,270	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of ball and roller bearings and components.

Products :

Product Description	ITC Code
Ball And Roller Bearings	8482

Deep Groove Ball Bearings
Four Point Ball Bearings
Self Aligning Ball Bearings
Cylindrical Roller Bearings
Spherical Roller Bearings
Tapered Roller Bearings

PRODUCTION STATUS (As on 31.12.2009)

Particulars	Unit	Installed Capacity**	Actual Production
Manufactured ***
(i) Ball and Roller Bearings	Nos.	50038000	47711012
(ii) Manufactured Components	Nos.	--	3774639
Trade
Bearings, Components of Railway	Nos.	852575	2123.200
Axle Box Housing, Re-Railing Equipment and its components$$	Nos.	--	139.400

Note:

** Installed capacity is as certified by the management on which the auditors have placed reliance without verification, being a technical matter.

*** Under a notification dated July 25, 1991 issued by the Ministry of Industry, the Company’s industrial undertaking is exempt from the licensing provisions of the Industries (Development and Regulation) Act, 1951. Accordingly, the requirement concerning disclosure of licensed capacity is not applicable.

$$ For some of these items purchased for sale, assembly/ minor processing by outside parties is carried out. These items are considered as traded items. As the components involved are dissimilar in nature it is not practicable to disclose quantitative information in respect of these products.

GENERAL INFORMATION

Customers :

Bajaj Auto
Eicher Tractors
FIAT India
Ford India
Hero Honda
HMT
Hyundai India
John Deere
Kinetic Motor
LML
Maruti Udyog
Mahindra and Mahindra
New Holland
Telco
Autolec
Lucas TV
ABB
BHEL
Crompton Greaves
Siemens
HMT
Elecon
Polar
Usha

Bankers :

Ø Union Bank of India

Ø State Bank of India

Ø ICICI Bank Limited

Ø HDFC Bank Limited

Ø Deutsche Bank


Banking Relations :	--

Auditors :
Name :	Mohinder Puri and Company Chartered Accountant
Address :	New Delhi

Collaborators :	Schaeffler Group, Germany

Fellow Subsidiary/ Associate Companies :	Schaeffler Australia Pty. Limited , Australia Schaeffler Brasil Ltda, Brazil Schaeffler Canada Inc., Canada Schaeffler (China) Company Limited , China Schaeffler Holding China Company Limited , China Schaeffler Trading (Shanghai) Company Limited , China Schaeffler (Ningxia) Company Limited , China Schaeffler KG, Germany FAG Railway Bearings (Ningxia) Company Limited , China Schaeffler Automotive Aftermarket oHG, Germany WPB Water Pump Bearing GmbH and Company KG, Germany FAG Magyarorszag Ipary KFT, Hungary Schaeffler Hong Kong Company Ltd, Hongkong INA Bearings India Private Limited , India FAG Roller Bearings Private Limited , India LuK India Private Limited , India Schaeffler Japan Company Limited Japan Schaeffler Korea Corporation, Korea LuK Aftermarket Service, S.A. de C.V., Mexico Schaeffler Nederland B.V., Nederland Schaeffler Portugal S.A. , Portugal Schaeffler (Singapore) Pte. Limited , Singapore Schaeffler South Africa (Pty.) Limited , South Africa Schaeffler (Thailand) Company Limited .Thailand The Barden Corporation, UK The Barden Corporation, USA Schaeffler Group USA Inc. Schaeffler Vietnam Company Limited , Vietnam Schaeffler Versicherungs-Vermittlungs GmbH, Germany HKAutoteile GmbH, Germany LuK Aftermarket Services oHG, Germany FAG Industrial Services GmbH, Germany

Holding Company:	FAG Kugelfischer GmbH, Germany

CAPITAL STRUCTURE

As on 31.12.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

Issued 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		31.12.2009	31.12.2008	31.12.2007
SHAREHOLDERS FUNDS
1] Share Capital		166.200	166.200	166.200
2] Share Application Money		0.000	0.00	0.000
3] Reserves & Surplus		4451.200	3883.900	3014.800
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4617.400	4050.100	3181.000
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		45.100	57.600	66.300

TOTAL		4662.500	4107.700	3247.300

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		1416.100	1483.500	1312.300
Capital work-in-progress		44.000	132.800	103.200
Capital Advances		24.300	18.200	7.400

INVESTMENT		3.200	3.200	12.200
DEFERREX TAX ASSETS		0.0000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1007.300	1592.900	982.800
	Sundry Debtors	1089.100	1145.000	1046.700
	Cash & Bank Balances	1730.700	635.500	639.300
	Other Current Assets	13.100	10.900	13.100
	Loans & Advances	769.200	470.100	317.300
Total Current Assets		4609.400	3854.400	2999.200
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1214.400	1145.600
	Other Current Liabilities	16.500	21.200	1016.400
	Provisions	203.600	216.900	170.600
Total Current Liabilities		1434.500	1384.400	1187.000
Net Current Assets		3174.900	2470.000	1812.200

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		4662.500	4107.700	3247.300

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2009	31.12.2008	31.12.2007
	SALES
		Income	7976.900	7444.100	6413.000
		Other Income	287.300	216.400	103.200
		TOTAL (A)	8264.200	7660.500	6516.200

Less	EXPENSES
		Manufacturing and other expenses	6945.400	5932.500	5103.700
		Prior period adjustments	115.200	43.800	0.000
		TOTAL (B)	7060.600	5976.300	5103.700

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1203.600	1684.200	1412.500

Less	FINANCIAL EXPENSES (D)		7.000	4.800	(22.700)

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1196.600	1679.400	1435.200

Less/ Add	DEPRECIATION/ AMORTISATION (F)		200.800	205.900	193.600

	PROFIT BEFORE TAX (E-F) (G)		995.800	1473.500	1241.600

Less	TAX (H)		340.400	516.300	446.300

	PROFIT AFTER TAX (G-H) (I)		655.400	957.200	795.300

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2291.800	1722.100	NA

Less	APPROPRIATIONS
		Transfer to General Reserve	250.000	300.000	NA
		Proposed Dividend	74.800	74.800	NA
		Income Tax on Dividend	12.700	12.700	NA
	BALANCE CARRIED TO THE B/S		2609.700	2291.800	NA

	EARNINGS IN FOREIGN CURRENCY
		Service income	4.700	45.100	66.000
		FOB value of exports	541.800	1114.200	896.300
		Others*	36.900	3.100	0.000
	TOTAL EARNINGS		583.400	1162.400	962.300

	IMPORTS
		Raw Materials	436.400	429.500	309.600
		Products Purchased for sale	1733.800	1582.300	885.200
		Stores & Spares for maintenance of machinery	53.500	54.500	52.400
		Capital Goods	10.200	175.300	107.800
	TOTAL IMPORTS		2233.900	2241.600	1355.000

	Earnings Per Share (Rs.)		39.44	57.60	NA

Note: * Includes reversal of product recall liability Rs. 33.500 Millions.

QUARTERLY RESULTS

PARTICULARS	31.03.2010	30.06.2010	30.09.2010
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Gross Sales	2359.300	2711.900	2703.000
Operating Income	14.700	14.100	20.900
Other Income	28.900	38.600	43.400
Total Income	2402.900	2764.600	2767.300
Total Expenditure	2011.800	2204.500	2243.000
PBIDT	391.100	560.100	524.300
Interest	1.700	2.100	2.400
PBDT	389.400	558.000	521.900
Depreciation	49.800	50.700	50.000
Tax	114.900	168.900	157.500
Reported Profit after tax	224.700	338.400	314.400

KEY RATIOS

PARTICULARS		31.12.2009	31.12.2008	31.12.2007
PAT / Total Income	(%)	7.93	12.50	12.20

Net Profit Margin (PBT/Sales)	(%)	12.48	19.79	19.36

Return on Total Assets (PBT/Total Assets}	(%)	16.53	27.60	28.80

Return on Investment (ROI) (PBT/Networth)		0.22	0.36	0.39

Debt Equity Ratio (Total Liability/Networth)		0.31	0.34	0.37

Current Ratio (Current Asset/Current Liability)		3.21	2.78	2.53

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject is a player in the Indian Bearing industry. The company manufactures a very wide range of bearings conforming to the stringent international quality standards. They are the leading OEM supplier to the automotive industry, mechanical and electrical engineering industry, besides the Railways. Their manufacturing plants are located at Vadodara in Gujarat.

Subject was incorporated as Precision Bearings India Limited in the year 1962. In the year 1986, the company changed their name to FAG Precision Bearings Limited and in the year 1999, they got their present name FAG Bearings India Limited In the year 1993 and 1998, they became the first Indian Bearing company to achieve ISO 9001 and QS 9000 certification respectively and in the year 1999, they received ISO 14001 certification.

In the year 2000, the company set up India's first production facilities to produce hub bearings. In the year 2001, the company entered a joint venture agreement with FAG Kugelfischer Georg Schaefer AG of Germany and formed FAG Roller Bearings Private Limited for manufacture of taper roller bearings at Pune in Maharashtra. The Pune plant has the production capacity of 2 million tapered tapered roller bearings of world class quality for automotive and industrial applications and in April 2002, they launched their product in the Indian Market.

The company increased their production capacity of Ball and Roller Bearings by 50000 Nos in the year 2002, 3178000 Nos in 2003, 1153000 Nos in 2004, 3793000 Nos in 2005, 13164000 Nos in 2006 and 3765000 in 2007. Thus the total production capacity increased to 47103000 Nos at the end of the financial year December 2007.

FINANCIAL AND OPERATIONAL PERFORMANCE:

The year 2009 started against the backdrop of a major economic recession that hit the world during the second half of 2008. Though the Indian economy, driven by domestic consumption and well supported by stimulus measures of Government, gradually came out of this global turmoil, the overall business situation remained very challenging during the year 2009. The Company’s total net sales grew by a moderate 7% during the year. Their exports sales declined by 51%, as the markets in Europe and US slumped under recessionary pressure. At the same time their intensified focus on Indian customers led to a smart increase of 17% in domestic sales (over 2008).

The general business scenario in 2009 was also characterized by severe liquidity crisis - triggered by global financial crisis. The Company successfully implemented a number of measures to improve working capital management. As at the year ending December 31, 2009, their inventories reduced by 37% and sundry debtors witnessed a decrease of 5% compared to the previous year.

At FAG India, They also undertook a number of projects to improve productivity, quality and customer responsiveness. Under active guidance and support from Schaeffler Group, They successfully launched 'MOVE' project at the Vadodara factory. MOVE provides a platform to empowered employees to come together and avoid waste through error-free processes while working in synchronization with their customers.

During the year, profitability of the Company remained under pressure due to a sharp decline in the exports business, substantial impact of steel price increase and an adverse product mix resulting from market conditions. Due to the above reasons, operating profit of The Company (Profit before tax) during the year 2009 reduced to 13%, compared to 19% in 2008.

DIRECTORS:

Mr. Rajendra Anandpara was appointed as an Additional Director from July 23, 2009 and as the Managing Director effective from August 1, 2009 by the Board of Directors of the Company at the meeting held on July 23,2009 to fill the vacancy caused due to the resignation of Mr. BiswarupDhar. The Board placed on record its appreciation of Mr. Dhar's contribution to the Company. At the forthcoming Annual General Meeting, Mr. Frank Huber and Mr. Bernhardsteinruecke will retire by rotation and being eligible, offer themselves for re-appointment as per the terms of the Articles of Association of the Company.

Mr. Dietmar Heinrich resigned from the Company's Directorship with effect from October 31, 2009. The Board appreciated his contribution as Director of the Company. The office of his Alternate Director Mr. Kamlesh Tapadar was considered as vacated automatically with effect from October31, 2009.

In place of Mr. Heinrich, Mr. Bruno Krauss, Executive Vice President - Finance, Schaeffler Group Asia Pacific Region and member of the Regional Asia Pacific Executive Management Board, was appointed as Additional Director w.e.f. February 11, 2010 by the Board of Directors of the Company. The Company has received notice under Section 257 of the Companies Act, 1956 proposing candidatu re of Mr. Bruno Krauss for the office of the Director.

During the year, the office of Alternate Directors was considered as vacant on arrival of their original Directors and with the consent of original Directors they were re-appointed as their Alternate Directors in the respective board meetings, the last of which was held on October 22, 2009. As on December 31, 2009 Mr. R. Sampath Kumar and Mr. Yezad Kapadia are the Alternate Directors of Mr. Frank Huber and Mr. Wolfgang Dangel respectively. On the request of Mr. Bruno Krauss, the Board of Directors in its meeting held on February 11, 2010 has appointed Mr. Kamlesh Tapadar as his Alternate Director.

Management Discussion and Analysis:

INDUSTRY STRUCTURE AND DEVELOPMENTS:

Indian Bearing market size is estimated at Rs. 60 billion. Imports (inclusive of duties) account over 45% of this demand. Production of the organized bearing industry as represented under BRBMA (Ball and Roller Bearing Manufacturers' Association) was placed at Rs. 26 billion. Indigenous bearing manufacturers presently focus on small and medium diameter range bearings consumed by large volume industries like Automotive, Electrical Engineering and Rail. Large size bearings are normally imported - though the indigenous bearing industry is gradually extending its footprint in this area too. It is difficult to arrive at an accurate estimation of production of unorganized sectors as there are number of players who mainly cater to requirements in replacement sector besides supplying to certain niche demands. At the same time, small scale companies are often the origin for spurious (counterfeit) products and thus pose a severe threat-both to bearing companies and to consuming industries. The automotive industry is the largest consumer of bearing products. Even as global auto majors went in to reverse gear in 2009, Indian passenger car sector and the two wheeler sector largely bucked the trend launching a number of new models and registering significant growth in exports.

The growth trends in commercial vehicles have distinctly varied as light commercial vehicle segment maintained its ground, while the medium and heavy commercial vehicle sector felt the heat due to decline in industrial output. The segment, however, is now stabilizing with industrial production improving. In the industrial sector, the Indian Railways, well supported by government's drive towards expansion and modernization, showed favourable increase in the bearing demand. At the same time demand from other industry sectors like machine tools, textile machines, wind and MRO customers remained sluggish through most partof2009.

OPPORTUNITIES:

Towards the end of 2009, the industrial growth recovered smartly to 7.9% during the quarter -July to September 2009. Industrial production grew by 11.7% in November 2009 - thus raising hope that the worst is over and They can look forward to 2010 with cautious optimism. Growing educated young population in India, expansion of middle class and trickle down effects of overall prosperity in rural areas, augurs well for economic development of India. The need for effective and efficient transportation both personal and public will rise more rapidly than before. At the same time, the 'value consciousness' of Indian middle class will mean that market growth will be mainly focused in areas of motorcycles and small cars at least during the medium term. Improvement in infrastructure - especially the road infrastructure has not quite lived up to the promise shown in eleventh five year plan. The Union Minister, Mr. Kamal Nath recently reaffirmed the government's commitment to lay 20 km of new road everyday -and They hope that this is actually realized as fast as possible.

A large number of public and private investment programs in power sector manifest Indian government's priority to this sector. Renewable energy too shows a lot of potential in the medium and long-term. Overall prospects for industrial development thus remain very positive in India and They expect strong demand of bearing products to continue in the coming future.

OUTLOOK:

Recent data suggests that Indian economy is fast getting back to growth trajectory. Private and public investments in new projects will certainly increase as the business confidence improves. Demand of The Company’s products in domestic market will thus grow in the coming years. At the same time there are concerns that rising fiscal deficit, increasing inflation and rain dependant agriculture may slow down the growth prospects. In the export markets, a significant improvement is not foreseen. Notwithstanding the above The Company will continue to pursue its growth process through continued business development, R and D, productivity and technology innovation measures.

FINANCE:

The Company has recorded a sales growth of 7% (2008:16%) even under the adverse conditions and reached the turnover of Rs. 8000.000 Millions, but the profit before tax has declined by 32%. The Company responded to the challenges of 2009, by following a very structured financial policy with strong emphasis on cash and liquidity. Through focus on control overworking capital and prudent approach on investment, the Company has been able to further improve its liquidity. This has resulted in the improvement of interest income by over32%. Although the rupee weakened significantly as against US dollar in 2009, Their proactive measures for hedging the Forex helped us in containing the Forex losses.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2010

(Rupees in Million)

Particulars	THREE MONTHS ENDED	NINE MONTHS ENDED
Particulars	30-9-2010 (Unaudited)	30-9-2010 (Unaudited)
a) Net sales / Income from Operations	2703.000	7774.200
b) Other operating Income	20.900	49.700
Total Income	2723.900	7823.900
Expenditure
a) (Increase)/Decrease in stock in trade & work in progress	0.800	(53.200)
b) Consumption of Raw Materials and Components	859.300	2417.500
c) Purchase of traded goods	707.900	2290.500
d) Employees Cost	195.100	578.300
d) Depreciation	50.000	150.500
f) Other Expenditure	479.900	1226.200
g) Total	2293.000	6609.800
Profit from Operations before Other Income, Interest and Exceptional Items	430.900	1214.100
Other Income
a) Interest	43.200	110.200
b) Others	0.200	0.700
Profit before Interest and Exceptional Items	474.300	1325.000
Interest	2.400	6.200
Profit after Interest but before Exceptional Items	471.900	1318.800
Exceptional Items (Including prior period adjustments)	-	-
Profit(+) / Loss (-) from Ordinary Activities before tax (7+8)	471.900	1318.800
Tax expense	157.500	441.300
Net Profit (+) / Loss (-) from Ordinary Activities after tax (9-10)	314.400	877.500
Extraordinary Items (Net of tax expense)	-	-
Net Profit (+) / Loss (-) for the period (11-12)	314.400	877.500
Paid-up equity share capital (Face value of Rs.10/- per share)	166.200	166.200
Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year
Earning per share (EPS) a) Basic and diluted EPS before Extraordinary Items for the period, for the year to date and for the previous year (not to be annualised)	18.92	52.80
b) Basic and diluted EPS after Extraordinary Items for the period, for the year to date and for the previous year (not to be annualised)	18.92	29.54
Public Shareholding - Number of shares	8088087	8088087
Percentage of shareholding	48.7	48.7
Promoters and promoter group Shareholding a) Pledged / Encumbered - Number of Shares
- Percentage of shares (as a % of the total	-	-
shareholding of promoter and promoter group)	-	-
- Percentage of shares (as a % of the total share capital of the Company)	-	-

b)Non-encumbered - Number of Shares	8229183	8229183
Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100	100
Percentage of shares (as a % of the total share capital of the Company)	51.30	51.30

Notes:

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.
There was no investor's complaint pending at the beginning and end of the quarter. Total 3 complaints were received and resolved during the quarter.
The above financial results were reviewed by the Audit Committee and approved by the Board of Directors at the meeting held on October 22, 2010
The Statutory Auditors have performed a 'Limited Review' of the above financial results for the three months ended September 30, 2010.
Previous period's figures have been regrouped wherever necessary to make them comparable.

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

AS PER WEBSITE

Overview:

FAG Kugelfischer George Schaefer AG, is the oldest bearing company in the world. Its founder, Freidrich Fischer, is credited with the invention of Ball Making Machine in 1883.This invention set the foundation of modern bearing industry. With headquarters in Germany, FAG's multinational operations include 75 companies in four continents.

In its operations over the past 120 years, FAG has established itself as a world leader in bearing technologies, by designing and implementing highly advanced bearing systems for diverse and critical applications. For example, FAG bearings are successfully used in NASA space shuttles, in tunneling machines which cut the 50 km Euro Tunnel, in high-speed trains like ICE, which run at speeds of 280 Km per hour and more. FAG is also a preferred supplier of bearing systems to the world's leading manufacturers of cars and trucks like GM, Ford, Volkswagen, Volvo, Daimler Chrysler to name a few.

FAG's strategy of focusing on innovative products and processes has proved to be a clear winner in the highly competitive bearing market, as evident by the group's successful performance in recent years. Today, FAG is a Euro 2.22 Billion (2001) group worldwide, with net income of 57 Billion Euro.

Moreover, FAG's recent development of "X" life bearing, which increases service life by 5 to 10 fold while at the same time reducing weight by 60%, is considered a trendsetter in the premium industrial bearing market.

Milestones:

1872 - Friedrich Fischer founds a repair workshop

In 1872 Friedrich Fischer founded a repair workshop for sewing machines from which the "First Automatic Cast Steel Ball Factory", formerly Friedrich Fischer AG, emerged in 1897.

1883 - Fischer starts manufacturing steel balls

Friedrich Fischer, the "Kugelfischer" (Ball Fischer), as he was referred to, laid the most historical milestone in 1883 when he succeeded for the first time in producing - under factory-like conditions - steel balls in large quantities which were very precise and uniform in size. This marked the beginning of the rolling bearing industry. For us, our history as an industrial company actually finds its point of origin here.

1905 - The FAG trademark

The "FAG" trademark originating from the Fischer Aktien-Gesellschaft, was first registered in 1905 and is now listed in the corporate registries of over a hundred countries. It was added to the company's name in 1979.

1985 - FAG goes public

In 1978, FAG Kugelfischer Georg Schafer AG was converted into a limited partenership, which in turn became a partnership limited by shares in 1983. In 1985, it was then launched on the stock exchange.

1993 - Focusing on core competence and customer orientation

In the year 1983, under the slogan "focusing on the core business", a comprehensive restructuring program was initiated, concentrating on the core businesses of rolling bearings, sewing technology and material handling systems.

1996 - International activities

In 1996, the FAG Group acquired companies, expanding its business in international markets.

1998 - The FAG Sales Europe is founded

In the year 1998, FAG continued to expand its business and sales network. FAG Sales Europe is carrying out its activities in twelve European countries through local branch offices in order to achieve a concerted and even stronger performance in the European market.

1998 - FAG gains market leadership in Korea

In order to significantly increase market share in Asia, and thus strengthen our competitive position, the FAG Group bought a 70 percent interest in FAG Hanwha Bearings Corporation, Seoul, Korea.

1999 - FAG Academy of International Coaching and Training

The FAG Academy of International Coaching and Training (AICT) was founded in 1999. AICT is a globally oriented organization and works closely together with university professors in Germany, USA and Korea.

2000 - International Orientation

FAG reached a global bearing alliance with NTN Corporation, Osaka, Japan.

2001

INA Holding Schaeffler KG and FAG Kugelfischer Georg Schafer AG have reached an agreement regarding INA's public tender offer for FAG's shares, FAG will remain the management company for FAG activities within the INA roup and the company name FAG Kugelfischer Georg Schafer AG and the brand name FAG will be retained.

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.45.74
UK Pound	1	Rs.72.73
Euro	1	Rs.62.73

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		65

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.

MIRA INFORM REPORT

1007.300

1592.900

982.800

1089.100

1145.000

1046.700

1730.700

635.500

639.300

13.100

10.900

13.100

769.200

470.100

317.300

4609.400

1214.400

16.500

21.200

1016.400

203.600

216.900

170.600

1434.500

1384.400

1187.000

3174.900

2470.000

1812.200

7.93

12.48

16.53

0.22

0.31

3.21

Unit