MIRA INFORM REPORT

Report Date :

08.03.2014

IDENTIFICATION DETAILS

Name :	FAG BEARINGS INDIA LIMITED
Registered Office :	Nariman Bhavan, 8^th Floor, 227, Backbay Reclamation, Nariman Point, Mumbai - 400021, Maharashtra
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	27.04.1962
Com. Reg. No.:	11-012340
Capital Investment / Paid-up Capital :	Rs. 166.200 Millions
CIN No.: [Company Identification No.]	L29130MH1962PLC012340
PAN No.: [Permanent Account No.]	AAACF3357Q
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Seller of Ball and Roller Bearings and Related Components.
No. of Employees :	1580 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (62)

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 35180000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of “Fag Kugelfischer Gmbh, Germany”. It is a well-established company having fine track record. The rating reflects healthy financial risk profile supported by adequate liquidity position and decent profitability of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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.

INDIAN ECONOMIC OVERVIEW

The worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Kamdar
Designation :	Accounts Executive
Contact No.:	91-22-66814444
Date :	07.03.2014

LOCATIONS

Registered Office :	Nariman Bhavan, 8^th Floor, 227, Backbay Reclamation, Nariman Point, Mumbai - 400021, Maharashtra, India
Tel. No.:	91-22-22022144/ 362/ 166/ 66814444-4499
Fax No.:	91-22-22027022
E-Mail :	fagmum@satyam.net.in shuklah@fag.co.in muralidharan.nair@schaeffler.com raj.sarraf@schaeffler.com avinashgandhi@rediffmail.com md.garde@yahoo.co.in
Website :	http://www.fag.co.in
Location :	Owned
Head Office/ Factory :	P.O. Maneja, Vadodara – 390013, Gujarat, India
Tel. No.:	91-265-6602000-2004
Fax No.:	91-265-2638804
E-Mail :	raj.sarraf@schaeffler.com
Savli Plant :	Plot No.1 (Alindra), Savli, GIDC Phase - III, Taluka Savli, Vadodara – 391775, Gujarat, India
Postal Address :	C.P. Patel Finance, J C Patel Estate, Block No. 176, Bharat Baug, Nh 8, Rangoli Crossing, Po Dasrath, Vadodara – 391740, Gujarat, India
Sales Offices :	Located at: v Bangalore v Bhubaneshwar v Chennai v Coimbatore v Jamshedpur v Kanpur v Kolkata v Mumbai v New Delhi v Pune v Secunderabad v Udaipur

DIRECTORS

AS ON 31.12.2012

Name :	Mr. Avinash Gandhi
Designation :	Chairman
Date of Birth/ Age :	October 1, 1938
Qualification :	B.Sc. in Mechanical Engineering
Date of Appointment :	20.04.2006
DIN No.:	00161107
Name :	Mr. Rajendra Anandpara
Designation :	Managing Director
DIN No.:	02461259
Name :	Mr. Bernhard Steinuecke
Designation :	Director
Date of Birth/ Age :	29.06.1955
Qualification :	Professional qualification in Law, Economics & Taxation
DIN No.:	01122939
Name :	Mr. Bruno Krauss
Designation :	Director
Date of Birth/ Age :	14.01.1972
Qualification :	Professional qualification in Management, Accounting & Taxation
DIN No.:	02946930
Name :	Mr. Frank Huber
Designation :	Director
DIN No.:	00689169
Name :	Mr. Wolfgang Dangel
Designation :	Director
Qualification :	Degree in Economic
DIN No.:	02589684
Name :	Mr. Moreshwar Digambar Garde
Designation :	Director
Date of Birth/ Age :	September 19, 1945
Qualification :	Master of Business Administration (MBA) FIII (Member of Insurance Institute of India) IRDA's Composite Brokers Exam BE (Electrical)
Date of Appointment :	25.07.2002
DIN No.:	00689103
Name :	Mr. R. Sampath Kumar
Designation :	Director
DIN No.:	00495192
Name :	Mr. Udo Bauer
Designation :	Director (appointed as Additional Director w.e.f. May 25, 2012)
Date of Birth/ Age :	29.10.1969
Qualification :	Professional qualification in Economics and Mechanical Engineering
DIN No.:	05287614
Name :	Mr. Kamlesh Tapadar
Designation :	Director (Alternate to Mr. Krauss)
DIN No.:	00161186
Name :	Mr. Yezad Kapadia
Designation :	Director (Alternate to Mr. Dangel)
DIN No.:	00161133

KEY EXECUTIVES

Name :	Mr. Satish Patel
Designation :	Chief Financial Officer
Name :	Mr. Raj Sarraf
Designation :	Company Secretary
Name :	Mr. Kamdar
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2013

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	8529183	51.33
Sub Total	8529183	51.33
Total shareholding of Promoter and Promoter Group (A)	8529183	51.33
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2859426	17.21
Financial Institutions / Banks	2058	0.01
Insurance Companies	214494	1.29
Foreign Institutional Investors	2486141	14.96
Qualified Foreign Investor	4412	0.03
Any Others (Specify)	3360	0.02
Foreign Financial Institutions	3360	0.02
Sub Total	5569891	33.52
(2) Non-Institutions
Bodies Corporate	847159	5.10
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1307198	7.87
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	321777	1.94
Any Others (Specify)	42062	0.25
Non Resident Indians	26532	0.16
Clearing Members	15530	0.09
Sub Total	2518196	15.15
Total Public shareholding (B)	8088087	48.67
Total (A)+(B)	16617270	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	16617270	100.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl. No.	Name of the Shareholder	Details of Shares held
		No. of Shares held	As a %
1	FAG Kugelfischer GMBH	85,29,183	51.33
	Total	85,29,183	51.33

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholders	No. of Shares held	Shares as %
1	HDFC Trustee Company Limited - HDFC Multiple Yield Fund - Plan 2005	732469	4.41
2	Acacia Partners LP	602688	3.63
3	Sundaram mutual Fund A/c Sundaram Monthly Incom Plan - Aggressive Plan	584000	3.51
4	Acacia Institutional Partners LP	517959	3.12
5	SBI Contra Fund	510508	3.07
6	IDFC Equity Oppertunity - Series I	467310	2.81
7	ICICI Prundential Life Insurance Company Limited	316097	1.90
8	Shree Capital Services Limited	276367	1.66
9	Franklin India Smaller Companies Fund	215229	1.30
10	New India Assurance Company Limited	214444	1.29
11	Acacia Banyan Partners	190276	1.15
12	Acacia Conservation Fund LP	181106	1.09
13	Comgest Growth PLC A/C Comgest Growth India	180058	1.08
14	Birla Sun Life Trustee Company Private Limited A/C Birla Sun Life Infrasture Fund	177155	1.07
	Total	5165666	31.09

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of Ball and Roller Bearings and Related Components.

Products/ Services :

Products Description*	Item Code No.
Ball and Roller Bearings (*Including Spherical and cylindrical roller bearings)	8482

Exports :

Products :

Finished Goods

Countries :

· Germany

Imports :

Products :

Raw Material

Countries :

· Germany

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

PRODUCTION STATUS (AS ON 31.12.2011)

Particulars	Installed Capacity Nos.**	Production # Nos.
Manufactured ***
(i) Ball and Roller Bearings	50957000	78324524
(ii) Manufactured Components	--	17572803

NOTES

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

# Includes bearings partially processed in-house are considered manufactured products in accordance with The Central Excise Act, 1944.

*** 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.

GENERAL INFORMATION

Customers :	End Users
No. of Employees :	1580 (Approximately)
Bankers :	v Union Bank of India v ICICI Bank Limited

Banking Relations :	--
Auditors :
Name :	BSR and Company Chartered Accountants
Address :	New Delhi, India
Collaborators :	v Schaeffler Group, Germany
Holding Company :	v FAG Kugelfischer GmbH, Germany
Fellow Subsidiary / Associate Companies	v Schaeffler Australia Pty. Limited, Australia v Schaeffler Brasil Ltda, Brazil v Schaeffler Iberia S.L.U, Barcelona v Schaeffler (China) Company Limited, China v Schaeffler Holding (China) Company Limited, China v Schaeffler Trading (Shanghai) Company Limited, China v Schaeffler (Ningxia) Company Limited, China v Schaeffler Finland Oy, Finland v Schaeffler France S.A.S., France v Schaeffler Tech. AG and Company KG, Germany (formally Schaeffler Technologies GmbH and Company KG, Germany) v Schaeffler AG, Germany v Schaeffler Automotive Aftermarket GmbH and Company oHG, Germany v FAG Industrial Services GmbH, Germany v WPB Water Pump Bearing GmbH and Company KG, Germany v FAG Magyarorszag Ipary KFT, Hungary v Schaeffler Hong Kong Company Limited, Hong Kong v INA Bearings India Private Limited, India v FAG Roller Bearings Private Limited, India v LuK India Private Limited, India v Schaeffler Bearings Indonesia, PT, Indonesia v Schaeffler Japan Company Limited, Japan v Schaeffler Korea Corporation, Korea v Schaeffler Mexico, S. de R.L. de C.V., Mexico v Schaeffler Nederland B.V., Nederland v Schaeffler Portugal S.A., Portugal v Schaeffler Philippines Inc., Philippines v SC Schaeffler Romania S.R.L., Romania v Schaeffler (Singapore) Pte. Limited, Singapore v Hydrel GmbH, Switzerland v INA Skalica Spol. s.r.o, Slovakia v Schaeffler South Africa (Pty.) Limited, South Africa v Schaeffler (Thailand) Company Limited, Thailand v The Barden Corporation, USA v Schaeffler Group USA Inc. v Schaeffler Vietnam Company Limited, Vietnam v Schaeffler UK Limited, UK

CAPITAL STRUCTURE

AS ON 31.12.2012

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

Reconciliation of shares outstanding at the beginning and at the end of the year

	31.12.2012
Equity shares	Number	Amount in Millions
Shares outstanding at the beginning and at the end of the year	16,617,270	166.200

Rights, preferences and restrictions attached to equity shares

(i) The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company’s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of shareholders are in proportion to its share of paid up equity capital of the Company.

(ii) On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company.

Shares held by holding / ultimate holding company and / or their subsidiaries / associates

	31.12.2012
Name of Shareholder	Number of Shares held	Amount in Millions
FAG Kugelfischer GmbH (the holding Company)	8,529,183	85.290

Particulars of shareholders holding more than 5% shares of a class of shares

	31.12.2012
Name of Shareholder	Number of Shares held	% of total shares
FAG Kugelfischer GmbH (the holding Company)	8,529,183	51.33

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	166.200	166.200
(b) Reserves & Surplus	8628.800	7134.200
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	8795.000	7300.400
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	64.400	31.700
(c) Other long term liabilities	15.200	14.400
(d) long-term provisions	229.400	194.300
Total Non-current Liabilities (3)	309.000	240.400
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	1786.100	1754.000
(c) Other current liabilities	417.700	452.200
(d) Short-term provisions	128.800	221.000
Total Current Liabilities (4)	2332.600	2427.200
TOTAL	11436.600	9968.000
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2782.200	1782.600
(ii) Intangible Assets	9.400	0.600
(iii) Capital work-in-progress	1135.500	568.400
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	43.500	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	754.300	1201.700
(e) Other Non-current assets	4.600	0.000
Total Non-Current Assets	4729.500	3553.300
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	1422.100	1622.500
(c) Trade receivables	2547.100	2143.000
(d) Cash and cash equivalents	1948.200	2334.200
(e) Short-term loans and advances	755.400	220.800
(f) Other current assets	34.300	94.200
Total Current Assets	6707.100	6414.700
TOTAL	11436.600	9968.000

SOURCES OF FUNDS		31.12.2010
SHAREHOLDERS FUNDS
1] Share Capital		166.200
2] Share Application Money		0.000
3] Reserves & Surplus		5568.400
4] (Accumulated Losses)		0.000
NETWORTH		5734.600
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		29.300
TOTAL		5763.900
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1410.000
Capital work-in-progress		61.700
Capital Advance		24.300
INVESTMENT		3.200
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1270.200
	Sundry Debtors	1314.500
	Cash & Bank Balances	2880.100
	Other Current Assets	53.200
	Loans & Advances	758.400
Total Current Assets		6276.400
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1771.700
	Other Current Liabilities	17.100
	Provisions	222.900
Total Current Liabilities		2011.700
Net Current Assets		4264.700
MISCELLANEOUS EXPENSES		0.000
TOTAL		5763.900

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2012	31.12.2011	31.12.2010
	SALES
		Revenue from operations	14466.500	13085.500	10400.800
		Other Income	446.300	308.500	252.700
		TOTAL (A)	14912.800	13394.000	10653.500
Less	EXPENSES
		Cost of materials consumed	4782.900	4281.900
		Purchases of Stock-in-Trade	4045.300	3433.700
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	247.700	(141.500)
		Employee benefits	1128.900	1011.800
		Other expenses	2057.600	1960.000
		TOTAL (B)	12262.400	10545.900	8624.700
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2650.400	2848.100	2028.800
Less	FINANCIAL EXPENSES (D)		13.000	12.600	8.900
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2637.400	2835.500	2019.900
Less/ Add	DEPRECIATION/ AMORTISATION (F)		302.700	225.900	201.100
	PROFIT BEFORE TAX (E-F) (G)		2334.700	2609.600	1818.800
Less	TAX (H)		742.900	849.900	603.800
	PROFIT AFTER TAX (G-H) (I)		1591.800	1759.700	1215.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4594.000	3377.500	2609.700
Less	APPROPRIATIONS
		Transfer to General Reserve	350.000	350.000	350.000
		Proposed Dividend	83.100	166.200	83.100
		Income Tax on Dividend	13.500	27.000	14.100
			446.6	543.2	447.2
	BALANCE CARRIED TO THE B/S		5739.200	4594.000	3377.500
	EARNINGS IN FOREIGN CURRENCY
		Service income	17.000	0.500	1.700
		FOB value of exports	2008.200	1567.500	996.800
		Others	11.600	12.300	5.700
	TOTAL EARNINGS		2036.800	1580.300	1004.200
	IMPORTS
		Raw Materials and components	1711.600	1632.200	982.000
		Products Purchased for sale	3008.600	2556.300	2204.300
		Stores & Spares for maintenance of machinery	103.200	80.200	57.000
		Capital Goods	711.100	719.400	83.200
	TOTAL IMPORTS		5534.500	4988.100	3326.500
	Earnings Per Share (Rs.)		95.79	105.88	73.11

QUARTERLY RESULTS

PARTICULARS	30.06.2013	30.09.2013	31.12.2013
	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	3115.700	3762.500	4025.600
Total Expenditure	2699.400	3255.900	3527.100
PBIDT (Excl OI)	416.300	506.600	498.500
Other Income	78.600	152.100	155.700
Operating Profit	494.900	658.700	654.200
Interest	2.200	1.600	1.700
Exceptional Items	0.000	0.000	0.000
PBDT	492.700	657.100	652.500
Depreciation	104.900	112.700	118.800
Profit Before Tax	387.800	544.400	533.700
Tax	132.000	185.500	184.600
Provisions and Contingencies	0.000	0.000	0.000
Reported PAT	255.800	358.900	349.100
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	255.800	358.900	349.100

KEY RATIOS

PARTICULARS		31.12.2012	31.12.2011	31.12.2010
PAT / Total Income	(%)	10.67	13.14	11.40
Net Profit Margin (PBT/Sales)	(%)	16.14	19.94	17.49
Return on Total Assets (PBT/Total Assets}	(%)	22.76	27.76	23.66
Return on Investment (ROI) (PBT/Networth)		0.27	0.36	0.32
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		2.88	2.64	3.12

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.12.2011	31.12.2012
	(Rs. in Millions)	(Rs. in Millions)
Share Capital	166.200	166.200
Reserves & Surplus	7134.200	8628.800
Net worth	7,300.400	8,795.000
long-term borrowings	0.000	0.000
Short term borrowings	0.000	0.000
Total borrowings	0.000	0.000
Debt/Equity ratio	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2010	31.12.2011	31.12.2012
	(Rs. in Millions)	(Rs. in Millions)	(Rs. in Millions)
	10400.800	13085.500	14466.500
		25.812	10.554

NET PROFIT MARGIN

Net Profit Margin	31.12.2010	31.12.2011	31.12.2012
	(Rs. in Millions)	(Rs. in Millions)	(Rs. in Millions)
Sales	10400.800	13085.500	14466.500
Profit	1215.000	1759.700	1591.800
	11.68%	13.45%	11.00%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	No
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

CURRENT MATURITIES OF LONG TERM DEBT: NOT AVAILABLE

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

FINANCIAL AND OPERATIONAL PERFORMANCE

2012 was a difficult year. Indian economy slowed down with GDP estimated to grow only at 5% in 2012-13, slowest since a decade. Besides slowing down of economy, factors such as tight liquidity and generally weak sentiments led to reduced consumption and investments.

Demand growth of the Company's products slowed down in 2012 thus limiting top line development. Increased costs of traded goods due to weakening of Indian Rupee, intense market competition and lower absorption of fixed costs on account of slower volume growth put added pressure on margins.

Amid the sluggish environment, the Company performed reasonably well. Income rose to M 1,491 crores representing growth of 11% (2011: 25%). Profit from ordinary activities in 2012 was placed at M 233 crores (2011: M 261 crores).

Consistent with its long-term strategy to invest in qualitative growth, the Company commissioned a new plant at Savli (near Vadodara) where they commenced production of Low-friction Ball Bearings. Production of Large Size Bearings and a new heat treatment plant will go on stream soon. At the existing plant in Maneja - Vadodara, they ramped up production of advanced Generation 3 Wheel Bearings, besides investing in various capacity and quality improvement projects.

The Company intensified the implementation of MOVE and Fit for Quality programmes as a part of continuous improvement process to realise the goal of operational excellence.

Continuing its emphasis on innovation, R&D and sector approach, the Company was successful in developing large number of value added and efficient solutions for its customers in automotive and industrial sectors.

By focusing on Schaeffler Group's core competencies of innovation, quality, and productivity, the Company will continue to sharpen its future competitiveness.

The Company will stay on course with its long-term strategy of investing in development of local production and R&D capabilities. Leveraging strengths of their robust processes, and empowered employees, the Company will continue to strive to become preferred partner to customers in India and thus benefit from India's growth in medium and long-term.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC SCENARIO

In the aftermath of the slowdown induced by global financial crisis in 2008-09, Indian economy had shown great resilience to achieve a growth rate of 6.7% in 2008-09. Supported by Government stimulus, the economy grew smartly at 8.6% and 9.3% respectively in 2009-10 and 2010-11.

However, rising consumption coupled with supply side constraints led to near double digit inflation in 2010 and 2011. This compelled the Reserve Bank of India (RBI) to maintain a rather stringent monetary policy throughout 2012. High interest cost, tight liquidity accompanied by weak sentiments led to reduced consumption and investments.

The growth forecast for FY 2012-13 has been continuously revised downwardly from the first estimate of 7.5% GDP growth made by Prime Minister's Economic Advisory Council in February 2012.

The GDP growth decelerated from 5.5% in Q1 2012-13 to 5.3% in Q2 2012-13. This has forced CSO (Central Statistical Office) to revise its growth outlook for 2012-2013 downwards to 5% - the lowest since a decade.

Faced by the slowdown in growth and risk of credit down rating, the Government of India announced some reforms over the last few months to revive investments and sentiments. These reforms though are unlikely to lead to sharp economic recovery in short-term.

On the whole, the year 2012 remained a year of economic uncertainties and weak sentiments. Measures now being taken by the Government of India to stabilise economy and revive sentiments are in the right direction and will have positive effect in medium and long-term.

INDUSTRY STRUCTURE AND DEVELOPMENTS

Rolling bearings are required wherever there is motion. Bearings thus play a critical role in industrial progress.

During 2011, Indian Bearing market size was estimated at M 85 billion (imports evaluated inclusive of duties). While accurate estimates of bearing demand for 2012 are yet not available, the first estimates are placed in the range of M 80-85 billion i.e. demand development in the year 2012 remained more or less flat.

During the year, production of the organised Bearing Industry as represented under BRBMA (Ball and Roller Bearing Manufacturers' Association) was placed at M 43 billion.

It is difficult to arrive at an accurate estimation of production of unorganised sectors as there are number of players who mainly cater to requirements in replacement sector besides supplying to certain niche demands.

Imports comprise approximately 40%-45% of bearing demand in India. Over the last few years imports from Asian countries, especially China, have significantly increased.

Rolling bearings find applications in Automotive and Industrial sectors. Aftermarket requirement from Automotive and Industrial sectors constitute approximately 35% of total bearing demand.

AUTOMOTIVE SECTOR

After registering smart growth in 2010 and 2011, the automotive growth slowed down in 2012. Rising interest rates and fluctuating fuel prices coupled with the negative global and local economic sentiments have been the main reasons for this slowdown.

OUTLOOK:

Despite the current subdued mood in the automobile sector, medium and long-term prospects of the Automotive Industry remain very positive. Economic expansion, rising aspirations, disposable income of the middle-income households and rural prosperity will continue to drive demand for personal and mass mobility. Automotive Industry should return to fast track soon.

INDUSTRIAL SECTOR

Overall industrial development in 2012 remained very sluggish.

Index of Industrial Production (IIP) showed negative development during 7 out of 12 months in 2012.

The production of capital goods such as machinery and equipment, electrical machinery etc. contracted due to slowdown in investment, decline in new projects and increasing global competition.

In the Infrastructure Industries, production of coal, natural gas and fertilisers was well below the expectations. A large number of public / private sector projects have been delayed due to issues related to land acquisition, regulatory clearances, etc.

OUTLOOK:

It is yet not clear if IIP growth development has reached the bottom. It is expected that due to Government's initiatives to contain deficit, the inflation will stabilise in coming months thus encouraging RBI to relax interest rates and spur industrial development.

Incentives given in the budget towards investments, speedier clearances of project and removal of bottlenecks will lead to positive climate. The Indian infrastructure industry needs substantial improvement and offers immense potential for long-term growth.

Restoration of generation based incentives augurs well for revitalisation of renewable industry.

Developments in Agricultural Machinery sector have always been cyclic. Since 2012, this sector is going through a lean patch. Good monsoon and adequate availability of rural finance are prerequisites for a reasonable recovery of this sector in 2013.

In the Rail sector, growing demand for effective mass mobility solutions continues to lead to steady and long-term development of the sector.

FINANCE

Despite the sluggish market environment, their Company's turnover rose to M 1491 crores representing growth of 11% (2011: 25%). Profit from ordinary activities in 2012 was placed at M 233 crores (2011: M 261 crores).

Their Company has been consistently practising sensible finance and working capital management that gives us assurance and confidence to take up new projects and give courage to face challenges. The Company has structured Forex risk assessment and mitigation plans in existence, which helped in hedging negative impact of currency fluctuation in 2012.

Their Company's structured financial policy has helped in setting up a new manufacturing facility at Savli, without dependence on any external funding. The strong focus on working capital and liquidity management has helped timely generation of sufficient internal cash flow to meet long-term strategic objectives.

STATEMENT OF STANDALONE AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2013

(RS. IN MILLIONS)

PART I

Sr. No.	Particulars	Three Months Ended		Year Ended
		31-12-2013 (Audited)	30-9-2013 (Unaudited)	31-12-2013 (Audited)
1	Income from Operations
	a) Net sales / Income from Operations (Net of excise duty)	3,994.900	3,729.500	14,202.400
	b) Other Operating Income	30.700	33.000	97.700
	Total income from operations (Net)	4,025.600	3,762.500	14,300.100
2	Expenses
	a) Cost of materials consumed	1,405.400	1,256.300	5,036.800
	b) Purchase of Stock-in-trade	1,207.600	1,245.100	4,256.100
	c) Changes in inventories of finished goods, Work-in-Progress and stock-in-trade	25.300	(97.100)	(322.000)
	d) Employees benefits expense	261.600	312.700	1,191.300
	e) Depreciation and amortisation expense	118.800	112.700	432.500
	f) Other expenses	627.200	538.900	2,302.000
	Total expenses	3,645.900	3,368.600	12,896.700
3	Profit from Operations before Other Income, finance costs and Exceptional Items (1-2)	379.700	393.900	1,403.400
4	Other Income	155.700	152.100	458.600
5	Profit from ordinary activities before finance costs and exceptional items (3+4)	535.400	546.000	1,862.000
6	Finance cost	1.700	1.600	7.600
7	Profit from ordinary activities after finance costs but before exceptional items (5-6)	533.700	544.400	1,854.400
8	Exceptional Items	-	-	-
9	Profit from Ordinary Activities before tax (7-8)	533.700	544.400	1,854.400
10	Tax expense	184.600	185.500	636.100
11	Net Profit from Ordinary Activities after tax (9-10)	349.100	358.900	1,218.300
12	Extraordinary Items (Net of tax expense)	-	-	-
13	Net Profit for the period (11-12)	349.100	358.900	1,218.300
14	Paid-up equity share capital (Face value of Rs.10/- per share)	166.200	166.200	166.200
15	Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year	-	-	9,708.900
16i	Earnings per share (before extraordinary items) (of Rs. 10 each) (not annualised)
	a) Basic	21.01	21.59	73.32
	b) Diluted	21.01	21.59	73.32
16ii	Earnings per share (After extraordinary items) (of Rs. 10 each) (not annualised)
	a) Basic	21.01	21.59	73.32
	b) Diluted	21.01	21.59	73.32

SELECT INFORMATION FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2013

PART II

Sr. No.	Particulars	Three Months Ended		Year Ended
		31-12-2013 (Audited)	30-9-2013 (Unaudited)	31-12-2013 (Audited)
A	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	- Number of shares	8088087	8088087	8088087
	- Percentage of shareholding	48.7	48.7	48.7
2	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	8529183	8529183	8529183
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100	100	100
	- Percentage of shares (as a % of the total share capital of the company)	51.3	51.3	51.3

	Particulars	3 Months Ended 31.12.2013
B	INVESTOR COMPLAINTS [Nos.]
	Pending at the beginning of the quarter	-
	Received during the quarter	-
	Disposed of during the quarter	-
	Remaining unresolved at the end of the quarter	-

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

Sr. No.	Particulars	31-12-2013 (Audited)
A	EQUITY AND LIABILITIES
1	Shareholders' funds
	a) Share Capital	166.200
	b) Reserves & Surplus	9,729.300
	Shareholders' Funds	9,895.500
3	Non-current liabilities
	a) Deferred tax liabilities (Net)	174.100
	b) Other long-term liabilities	16.100
	c) Long-term Provisions	205.000
	Non-Current Liabilities	395.200
4	Current Liabilities
	a) Trade payables	2,404.700
	b) Other current liabilities	488.500
	c) Short-term provisions	148.800
	Current Liabilities	3,042.000
	TOTAL-EQUITY AND LIABILITIES	13,332.700
B	ASSETS
1	Non-current assets
	a) Fixed assets	4,123.200
	b) Non-current investments	43.500
	c) Long-term loans and advances	1,765.100
	d) Other non-current assets	4.600
	Non-current assets	5,936.400
2	Current assets
	a) Inventories	1,705.800
	b) Trade receivables	2,906.000
	c) Cash and cash equivalents	2,376.600
	d) Short-term loans and advances	347.100
	e) Other current assets	60.800
	Current assets	7,396.300
	TOTAL-ASSETS	13,332.700

NOTES:

1) The business of the Company falls under a single primary segment i.e. "Ball / Roller Bearings and related components" for the purpose of Accounting Standard AS - 17.

2) The figures of the last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the respective financial year. Also the figures up to the end of the third quarter were only reviewed and not subjected to audit.

3) The audited financial results for the year ended December 31, 2013 were reviewed by the Audit Committee and approved by the Board of Directors at the meeting held on February 11, 2014. The statutory auditors have expressed an unqualified opinion.

4) The Board of Directors of the Company has recommended a dividend for the year ended December 31, 2013 at the rate of Rs. 6.00 per share (2012: Rs. 5.00 per share),

CONTINGENT LIABILITIES (AS ON 31.12.2012):

Claims against the Company not acknowledged as debts:

(a) Employees and ex-employees related matters:

v Matters pending in labour court / civil court / high court for reinstatement of service / recovery of salary Rs. 116.000 millions (2011: Rs.96.200 millions);

v Applicability of Provident Fund on certain benefits to employees Rs.190.400 millions (2011: Rs. 155.900 millions);

v Demand for discontinuing of contract system and for differential wages Rs.102.600 millions (2011: Rs.83.000 millions);

v Applicability of Employees State Insurance on certain benefits paid to the employees Rs. 6.900 millions (2011: Rs.6.000 millions).

(b) Sales Tax:

For non-receipt of C Forms and rejection of Company's claim of certain sales as exempt sales in respect of assessment years 2003-04, 2004-05, 2005-06, 2006-07, 2007-08 and 2008-09 M 36.300 million (2011: Rs.22.800 millions).

(c) Excise and Service Tax:

Excise

(i) In respect of matters decided against the Company, for which the Company is in appeal with higher authorities Rs. Nil (2011: Rs.0.600 million).

Service Tax

(ii) In respect of matters where the Company has received favourable orders / partial relief from the First Appellate authorities but the Central Excise and Customs Department is pursuing further with higher Appellate authorities (excluding the matters if not ultimately allowed, would be allowed in the following assessment years) Rs.1.900 millions (2011: Rs.1.800 millions).

(d) Income Tax:

(i) In respect of matters decided against the Company, for which the Company is in appeal with higher authorities Rs.82.800 millions (2011: Rs. 96.800 millions).

(ii) In respect of matters where the Company has received favourable orders / partial relief from the First Appellate authorities but the Income Tax Department is pursuing further with higher Appellate authorities (excluding the matters if not ultimately allowed, would be allowed in the following assessment years) Rs.159.300 millions (2011: Rs.151.800 millions).

FIXED ASSETS:

v Freehold Land

v Leasehold Land

v Buildings

v Plant and Equipment

v Furniture & Fixtures

v Office Equipments

v Vehicles

v Software

v Technical know-how fees

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 60.99
UK Pound	1	Rs. 102.07
Euro	1	Rs. 84.53

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		62

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.