MIRA INFORM REPORT

1. Summary Information

		Country	India
Company Name	LUBRIZOL INDIA PRIVATE LIMITED	Principal Name 1	Mr. Madhukar Ramniklal Kumbhani
Status	Good	Principal Name 2	Mr. Narasimachariar Gopaladesikachariar Kannan
		Registration #	11-13538
Street Address	2^nd Floor, VIP House, 88-C, Old Prabhadevi Road, Mumbai – 400 025, Maharashtra, India
Established Date	20.07.1966	SIC Code	--
Telephone#	91-22-24300672/0784/1856/2315/24222062/24302315/24370995	Business Style 1	Manufacturing
Fax #	91-22-24300251/24370994/24366097	Business Style 2	Marketing of Lubricants.
Homepage	www.lubrizolindia.com	Product Name 1	Engine Oil – Additives
# of employees	500 (Approximately)	Product Name 2	Industrial Oil – Additives
Paid up capital	1920000 Shares	Product Name 3	Viscosity Index- Improvers and Pour Point Depressant
Shareholders	50.00%	Banking	State Bank of India
Public Limited Corp.	--	Business Period	41 Years
IPO	---	International Ins.	-
Public Enterprise	---	Rating	A
Related Company
Relation	Country	Company Name
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.12.2009		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	1,553,624,000	Current Liabilities	718,519,000
Inventories	1,091,952,000	Long-term Liabilities	47,000
Fixed Assets	778,357,000	Other Liabilities	66,469,000
Deferred Assets		Total Liabilities	785,035,000
Invest& other Assets	10,786,000	Retained Earnings	2,457,684,000
		Net Worth	2,649,684,000
Total Assets	3,434,719,000	Total Liab. & Equity	3,434,719,000
Total Assets (Previous Year)	2,207,745,000
P/L Statement as of	31.12.2009		(Unit: Indian Rs.)
Sales	5,660,366,000	Net Profit	927,584,000
Sales(Previous yr)		Net Profit(Prev.yr)

MIRA INFORM REPORT

Report Date :

18.01.2011

IDENTIFICATION DETAILS

Name :	LUBRIZOL INDIA PRIVATE LIMITED

Registered Office :	2^nd Floor, VIP House, 88-C, Old Prabhadevi Road, Mumbai – 400 025, Maharashtra.

Country :	India

Financials (as on) :	31.12.2009

Date of Incorporation :	20.07.1966

Com. Reg. No.:	11-13538

CIN No.: [Company Identification No.]	U23201MH1966GOI013538

TAN No.: [Tax Deduction & Collection Account No.]	MUML04740B

PAN No.: [Permanent Account No.]	AAACL0126H

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturing and Marketing of Lubricants.

RATING & COMMENTS

MIRA’s Rating :

A (66)

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 10598000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. 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 / Marketing Division:	2^nd Floor, VIP House, 88-C, Old Prabhadevi Road, Mumbai – 400 025, Maharashtra, India
Tel. No.:	91-22-24300672/0784/1856/2315/24222062/24302315/24370995
Fax No.:	91-22-24300251/24370994/24366097
E-Mail :	pvs@lubrizol.com indulekha.godse@lubrizol.com
Website :	http://www.petroleum.nic.in/lil.htm http://www.lubrizolindia.com
Location :	Owned

Regional Office:	New Delhi 524/525, 5^th Floor, Core - 6, Scope Complex, Lodhi Road, New Delhi – 110 003, India Tel No: 91-11-24361317 Fax No: 91-11-24362879 / 24361629 Chennai : Apeejay Business Center, Apeejay House, 12, Haddows Road, Nungambakkam, Chennai – 600 006 Tel: 91-44-2822 4949 Kolkata Room No.-7, 6th floor Shantiniketan, 8, Carnac Street, Kolkata-700017. Tel: 91-33-22824063 . Fax: 91-33-22825782


Factory 1 / Technical Support Facility:	9/3, Thane Belapur Road, Turbhe, District Thane, Navi Mumbai – 400 705, Maharashtra, India
Tel. No.:	91-22-27672568
Fax No.:	91-22-27672155

Factory 2 :	T-6, MIDC, Industrial Area, Taloja, District Raigad, Maharashtra, India
Tel. No.:	91-22-27410813
Fax No.:	91-22-27410910

Branches :	Apeejay Business Center, Apeejay House, 12, Haddows Road, Nungambakkam, Chennai – 600 006 Tel: 91-44-28224949 Temple Tower, 2^nd Floor, Nandanam, 476, Anna Salai, Chennai – 600 035, Tamilnadu Tel. 91-44-24346451 Fax. 91-44-24330943 Room No. 7, 6^th Floor, Shantiniketan, 8, Carnac Street, Kolkata – 700 017, West Bengal Tel. 91-33-22824063 Fax. 91-33-22825782

DIRECTORS

As on 05.05.2010

Name :	Mr. Madhukar Ramniklal Kumbhani
Designation :	Managing Director
Address :	99, Dariya Mahal B 80, Nepean Sea Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	04.02.1950
Date of Appointment :	01.10.2006

Name :	Mr. Narasimachariar Gopaladesikachariar Kannan
Designation :	Director
Address :	K – 99, 16^th Street, Anna Nagar, Chennai – 600 102, Tamilnadu, India
Date of Birth/Age :	08.06.1946
Date of Appointment :	01.04.2007

Name :	Mr. Darius Cavasji Shroff
Designation :	Director
Address :	Moonlight, Flat No.8, 158, M. Karve Road, Churchgate, Mumbai – 400 020, Maharashtra, India
Date of Birth/Age :	08.08.1944
Date of Appointment :	22.07.2004

Name :	Mr. David James Fries
Designation :	Director
Address :	2051, Ridgebury Drive, Painsville, OH – 44077, USA.
Date of Birth/Age :	14.02.1959
Date of Appointment :	22.07.2004

Name :	Mr. Anand Kumar
Designation :	Director
Address :	Flat No.508, 5^th Floor, Sneh Kunj, Plot No. C-58/13, Sector 62, Noida – 201 307.
Date of Birth/Age :	28.06.1950
Date of Appointment :	03.09.2007

Name :	Mr. Tapas Chattapadhyay
Designation :	Director
Address :	1A, Rammoy Road, Kolkata – 700 025, West Bengal, India.
Date of Birth/Age :	11.06.1950
Date of Appointment :	01.10.2008

Name :	Mr. Vinod Ram Sharma
Designation :	Director
Address :	102, Bajaj Onyx, 36, Union Park, Khar (West), Mumbai – 400 052, Maharashtra, India
Date of Birth/Age :	25.09.1948
Date of Appointment :	02.06.2006
Date of Ceasing :	30.09.2008

Name :	Mr. Brij Mohan Shyam Sunder Bansal
Designation :	Director
Address :	837, Asiad Village, New Delhi – 110049, India
Date of Birth/Age :	04.01.1951
Date of Appointment :	25.10.2005

Name :	Mr. Anthony James Shick
Designation :	Director
Address :	7413, Churchill Square, Mentor – 440604763, USA
Date of Birth/Age :	05.05.1967
Date of Appointment :	20.06.2007
Date of Ceasing :	11.06.2009

Name :	Mr. Dilip Ramchandra Teredesai
Designation :	Managing Director
Address :	301, Royal Accord, 15, Gokhale Road [North], Dadar, Mumbai – 400028, Maharashtra, India
Date of Birth/Age :	18.05.1947
Date of Appointment :	01.04.2002
Date of Ceasing :	20.06.2007

Name :	Mr. John Louis Petric
Designation :	Director
Address :	9277 Regerncy Woods, Kirtland, OH, Ohio, 44094, United States of America.
Date of Birth/Age :	07.05.1951
Date of Appointment :	11.06.2009

KEY EXECUTIVES

Name :	Mr. R. T. Goel
Designation :	Company Secretary

Name :	Ms. Indulekha Nitin Godse
Designation :	Company Secretary
Address :	JN – 4/10/14, Blue Haven, Sector 10, Vashi, Navi Mumbai – 400703, Maharashtra, India
Date of Birth/Age :	02.09.1963
Date of Appointment :	01.12.2004

Name :	Mr. Godse Nitin Indulekha
Designation :	Secretary
Address :	JN – 4/10/14, Blue Haven, Sector 10, Vashi, Navi Mumbai - 400703
Date of Birth/Age :	02.09.1963
Date of Appointment :	01.12.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 05.05.2010

Names of Shareholders	No. of Shares
Indian Oil Corporation Limited, U.S.A	960000
The Lubrizol Corporation, U.S.A	960000
Total	1920000

As on 05.05.2010

Category	Percentage
Public financial companies	50.00
Bodies corporate	50.00

Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and Marketing of Lubricants.

Products :	· Engine Oil – Additives · Viscosity Index- Improvers and Pour Point Depressant · Industrial Oil – Additives Product Code No. 38.1100

Brand Names :	“ LUBRIZOL”

Exports :
Products :	Chemicals Additives
Countries :	USA France

Imports :
Products :	Raw Materials
Countries :	USA

Terms :
Selling :	L/C and Credit

Purchasing :	L/C and Credit

PRODUCTION STATUS AS ON 31.12.2009

Particulars

Unit

Licensed Capacity

(MTPA)@

Installed Capacity

(MTPA)@

Actual Production

(MTPA)

Finished Additive packing Chemical

Additives inclusive of:

Metal Working Oil Additives, Anti – Oxidant, Corrosion Inhibitor, Detergent Additives, Dispersant, Additives, Extreme Pressure Additives, V.I. Improvers /Pour Point Depressants and Flow Improvers

60000

40594

Raw Material

- Isobutylene

3000

Note:

1. @ indicates as certified by Management

2. Production figures are inclusive of production for captive consumption.

3. Since licenses are no longer required for products manufactured, the date for the same are not given.

GENERAL INFORMATION

Customers :

Wholesalers
End Users

No. of Employees :

500 (Approximately)

Bankers :

State Bank of India, Commercial Branch, Opposite Shivaji Vidyalaya, Dadar (East), Mumbai – 400 014, Maharashtra, India
Bank of India, Mumbai, Maharashtra, India.
ICICI Bank Limited, Mumbai, Maharashtra, India.

Facilities :

UNSECURED LOANS

As on 31.12.2009

(Rs. in Millions)

As on 31.12.2008

(Rs. in Millions)

From Others – Lubrizol Corporation, USA

0.047

0.049

Total

0.047

0.049


Banking Relations :	Good

Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Plot No. 12, Dr. Annie Besant Road, Opposite Shivsagar Estate, Worli, Mumbai-400018, Maharashtra, India
Tel. No.:	91 – 22 - 66679000
Fax No.:	91 – 22 - 66679025

Parent Company / Joint Venture:	Lubrizol Corporation, U.S.A. Indian Oil Corporation Limited

CAPITAL STRUCTURE

(As on 31.12.2009)

Authorised Capital :

No. of Shares	Type	Value	Amount
1920000	Equity Shares	Rs. 100/- each	Rs. 192.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1920000	Equity Shares	Rs. 100/- each	Rs. 192.000 Millions

Note:

Out of the above shares18,60,000 Equity Shares of Rs.100/- each have been allotted as fully paid up bonus shares by capitalization of General Reserve

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		192.000	192.000	192.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2457.684	2035.518	1895.966
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2649.684	2227.518	2087.966
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.047	0.049	0.040
TOTAL BORROWING		0.047	0.049	0.040
DEFERRED TAX LIABILITIES		66.469	75.243	65.406

TOTAL		2716.200	2302.810	2153.412

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		778.357	750.112	681.799
Capital work-in-progress		10.786	67.007	100.410

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1091.952	1316.288	957.158
	Sundry Debtors	601.908	450.746	561.461
	Cash & Bank Balances	740.376	108.724	647.941
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	211.340	331.987	219.731
Total Current Assets		2645.576	2207.745	2386.291
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	527.271	446.792	470.801
	Current Liabilities	42.869	487.074	513.142
	Provisions	148.379	234.980	513.527
Total Current Liabilities		718.519	722.054	1026.669
Net Current Assets		1927.057	1485.691	1359.622

MISCELLANEOUS EXPENSES		0.000	0.000	11.581

TOTAL		2716.200	2302.810	2153.412

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2009	31.12.2008	31.12.2007
	SALES
		Sales and Other Income	5660.366	5456.391	4422.457
		TOTAL (A)	5660.366	5456.391	4422.457

Less	EXPENSES
		Office Expenses
		Administrative Expenses	4144.719	4718.939	3694.273
		Advertising Expenses
		TOTAL (B)	4144.719	4718.939	3694.273

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1515.647	737.452	728.184

Less	FINANCIAL EXPENSES (D)		0.000	0.081	0.044

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1515.647	737.371	728.228

Less/ Add	DEPRECIATION/ AMORTISATION (F)		92.365	95.405	104.962

	PROFIT BEFORE TAX (E-F) (G)		1423.282	641.966	623.265

Less	TAX (I)		495.698	222.879	217.633

	PROFIT AFTER TAX (G-I) (J)		927.584	419.087	405.632

Less	APPROPRIATIONS
		Transfer to General Reserve	92.758	42.034	41.639
		Proposed Final Dividend	0.000	96.000	316.800
		Tax on Proposed Dividend	0.000	16.315	53.840
		Tax on Interim Dividend	73.418	24.474	0.000
		Interim Dividend	432.000	144.000	0.000
	BALANCE CARRIED TO THE B/S		431.035	101.627	4.106

	EARNINGS IN FOREIGN CURRENCY
		FOB Value of exports	780.016	1199.880	NA
		Commission Earnings	13.078	16.289	NA
	TOTAL EARNINGS		793.094	1216.169	NA

	IMPORTS
		Raw Materials	898.360	676.440	NA
		Intermediates	501.080	506.725	NA
		Indigenous	1595.037	2272.708	NA
	TOTAL IMPORTS		2994.477	3455.873	NA

	Earnings Per Share (Rs.)		483.11	NA	NA

KEY RATIOS

PARTICULARS		31.12.2009	31.12.2008	31.12.2007
PAT / Total Income	(%)	16.38	7.68	9.17

Net Profit Margin (PBT/Sales)	(%)	25.14	11.76	14.09

Return on Total Assets (PBT/Total Assets}	(%)	53.79	21.70	26.12

Return on Investment (ROI) (PBT/Networth)		0.53	0.29	0.29

Debt Equity Ratio (Total Liability/Networth)		0.27	0.32	0.49

Current Ratio (Current Asset/Current Liability)		3.68	3.06	2.32

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE:

The company ‘s 2009 PBT of Rs. 1423.282 Millions is a record high but is not sustainable in the long run due to lower exports and margin erosion.

Sales and Marketing:

Domestic sales volume in 2009 is 9.54% higher than in 2008 as the Indian economy recovered from the economic slow down in 2008.

Export sales volume in 2009 is 33.64% lower than in 2008 due to reduced demand from LZ. The company expects future export sales to be significantly lower than in recent years.

FIXED ASSETS

· Leasehold Land

· Buildings

· Plant and Machinery

· Electrical Installations

· Furniture and Fixtures

· Office Appliance

· Canteen and Other Equipment

· Vehicles

Bankers Charges Report as per Registry

Name of the company	LUBRIZOL INDIA LIMITED
Presented By	The Manager (Credit), State Bank of India, commercial Branch, Justice GN Vaidya Marg, Mumbai 0 400 023m, Maharashtra ,India
1) Date and description of instrument creating the change	Agreement for Cash Credit , hypothecation of goods, debts and asset (Form K Special)
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 100.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The whole of the borrowers stocks of raw materials , finished goods, stock in process , stores, spares which now or hereafter from time to time during this security shall be brought into stored or be in or about the borrowers go downs or premises at Bombay or wherever else the same may be including any such goods in course of transit or delivery (hereinafter called ‘the said goods’) and secondly all the borrowers present and future book debts, outstanding monies, receivables , claims bills, contracts , engagements, securities , Investment, rights and assets (hereinafter called the said debts and assets’)
4) Gist of the terms and conditions and extent and operation of the charge.	The borrowers goods debts and assets as detailed in Items No. 3 hereof are hereby hypothecated to the bank and its assigns by way of first charge subject however to the security constituted by form K dated 30.06.1976 for Rs. 2.500 millions in respect of guarantee limit (subsequently enhanced to Rs. 5.000 millions by supplemental agreement dated 09.10.1985 2) Form K (Spl ) dated 09.05.1978 for Rs. 40.000 millions in respect of letters of credit limit (subsequently enhanced to Rs. 60.000 millions by supplemental agreement dated 09.10.1985) as security for the payment by the borrower to the bank on demand of all moneys at any time payable by the borrowers to the bank in respect of the said cash credit account and also as security for the payment and discharge of all indebtedness or liability of the borrowers to the ban kin respect of any bills of exchange , promissory note or instrument at any time drawn, made , accepted or endorsed by the borrowers solely or jointly with others which the bank may discount or become interested in together with all interest , discount , commission charges , costs (as between Attorney and Client) and expenses payable to or incurred by the bank in relation thereto. The borrower agrees that interest at the rate of one half per cent below state Bank Advance Rate with a minimum of Sixteen percent per annum shall be calculated on the daily balance payable by7 the borrowers to the bank and charges in account quarterly in accordance with the practice of the bank. The borrower further agrees a that the bank shall not be required to make or continue advances on the said cash credit account otherwise than at the bank discretion and in no circumstances to an amount at any one time exceeding with interest thereon the sum of Rs. 100.000 millions or a sum equal to 70% of the normal current market value of imported and indigenous raw materials, finished goods, stock in process, stores and spares , 65% of the value of book debts due from Government parties 55% of the value of book debts due from the private parties which ever is less. The borrower undertake not to create any mortgage , charge, lien or encumbrance upon or over the same or any part thereof except to the bank nor suffer any such mortgage , charge, lien or encumbrance to affect the same or any part thereof nor do or allow anything that may prejudice this security. The borrower affirms that all present goods, debts and assets presently hypothecated as aforesaid are the absolute property of the borrower at the sole disposal of the borrower and free from any prior charge or encumbrance except the security constituted by the aforesaid agreement and that all future goods, debts and assets hereunder shall be likewise the unencumbered absolute and disposal property of the borrower except for the said charges created as aforesaid entitled to charge.
5) Name and Address and description of the person entitled to the charge.	State Bank of India Address: Commercial Branch, Justice G N Vaidya Marg, Mumbai – 400 023, Maharashtra, India

Name of the company

LUBRIZOL INDIA PRIVATE LIMITED

Presented By

The Chief Manager (Credit), State Bank of India, commercial Branch, Justice GN Vaidya Marg, Mumbai - 400 023, Maharashtra ,India

1) Date and description of instrument creating the change

agreement of hypothecation of goods , and assets dated 03.05.1992

Letter regarding the grant of individual limit within the overall limit dated 13.05.1992

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 332.500 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of all present and future goods book debts and all other movable assets of the borrower including documents of title to the goods outstanding moneys receivables including receivable4s by \way of cash assistance and / or cash incentives under the cash incentives scheme or any other customs / excise duties under the duty drawback credit scheme or any other scheme, bill, invoices, documents, contracts, insurance policies, guarantee, engagement, securities, investments and rights and the present machinery and lal future machinery belonging to or in the possession or under the control of the borrower wherever lying stored and kept and whether in possession of the borrower or of the bank or of any third party whether in India or elsewhere throughout the world (including all such goods, other movable assets as may be in course of shipment transit or delivery) (hereinafter referred to as “the said goods and assets”)

4) Gist of the terms and conditions and extent and operation of the charge.

Interest at such rate as may be determined by the bank from time to time at the bank sole discretion on the basis of any internal credit rating accorded to the borrower or otherwise provided that the rate shall be subject to changes in the State Bank Advance Rate and / or changes in Interest rates prescribed by the Reserve Bank of India from time to time.

Nature of facility	Limit (Rs. in millions)	Rate of interest / Discount / Commission
Cash Credit	197.500	21.25% p.a
Letter Of Credit	120.000	N/A
Guarantee	15.000	N/A
Total	332.500

Margin:

Particulars of the item	Margin
Imported and indigenous raw materials , finished goods, Stock in process, stores and spares	35%
Book debts due from government parties	35%
Book debts due from private parties	45%

5) Name and Address and description of the person entitled to the charge.

State Bank of India

Address: Commercial Branch, Justice B N Vaidya Marg, Mumbai – 400 023, Maharashtra, India

This form is for	Creation of charge
Corporate identity number of the company	U23201MH1966GOI013538
Name of the company	LUBRIZOL INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	2^nd Floor, VIP House 88 – C, Old Prabhadevi Road, Mumbai – 400 025, Maharashtra, India.
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	State Bank of India, Commercial Branch, Opposite Shivaji Vidyalaya, Dadar (East), Mumbai – 400 014, Maharashtra, India. sbi.04114@sbi.co.in
Nature of description of the instrument creating or modifying the charge	1. Agreement of hypothecation of goods and assets 2. Letter regarding the grant of individual limits within the overall limit (Collectively Constitute Single Charge)
Date of instrument Creating the charge	21.11.2008
Amount secured by the charge	Rs.120.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest - Interest – at SBAR at monthly rests Terms of Repayment - The borrower shall on demand pay the whole amount due to the Bank with interest and cost. Margin - 1. Raw Materials, Stock in process, Finished Goods – 30% 2. Book debts – 50% Extent and Operation of the charge - Security to cover principal amount together with interest, costs, charges and expenses etc. Others - Details of credit facilities as under: 1. Demand Cash Credit Rs.60.000 Millions DCC Book Debts (sub limit)Rs.30.000 Millions EPC (sub limit) Rs.5.000 Millions 2. Letter of credit Rs.30.000 Millions 3. Bank of Guarantee Rs.30.000 Millions Total Rs.120.000 Millions
Short particulars of the property charged	First and exclusive charge and security by way of hypothecation of present and future Stocks and Book Debts.

WEB SITE DETAILS:

COMPANY PROFILE:

Subject was incorporated in 1966 in collaboration with The Lubrizol Corporation, U .S.A. (LC), world leaders in the additive business. At that time 60% of the subscribed equity capital of the company was held by the Government of India and the balance 40% was held by LC. On 31^st March 2000, the company was restructured with 50% of the shares held by LC and the balance of the shares being held by Indian Oil Corporation Limited.

Additives are complex synthetic chemicals which are added to petroleum fuels and lubricants to achieve the desired end use applications. Present day automotive and industrial oils owe their performance mainly to the chemical additive system added to them. The additive packages have components which perform certain distinctive functions such as detergency, dispersancy, oxidation stability, anti wear property, rust and corrosion inhibition, viscosity index improvement, etc. For each of these basic functions, there are many different approaches requiring different chemicals or combination of chemicals that may provide the necessary performance characteristics. Chemical additives are also used for improving the flow characteristics of crude oil and petroleum products.

Subject develops, manufactures and markets Additive Systems for Automotive and Industrial Lubricants and for the treatment of Fuels. Subject's main production unit is situated at Trans Thane-Belapur Industrial Complex near Navi Mumbai. The manufacturing operations of the company have received ISO-9002 and ISO 9001-2000 Certification from the Bureau Verities Quality International as well as ISO-14001 and accreditation by implementing a comprehensive Environmental Management System.

The company was initially incorporated as a 'Private Limited' Company. By virtue of Section 43-A of the Companies Act, it became a Deemed Public Limited Company with effect from 27th December 1966. The Companies (Amendment) Act, 2000 (effective 13th December 2000), abolished the concept of 'Deemed Public Company', and accordingly, Subject reverted to a 'Private Limited Company' with effect from 13th March 2001.

Subject is one of the very few companies outside U.S.A. and Europe with comprehensive manufacturing infrastructure for the development and production of fuel and lubricant additives.

The management control of the company with The Lubrizol Corporation (NYSE:LZ) who is a global provider of specialty additives and fluid technologies. These high performance technologies focus on chemicals, systems and services for transportation and industry .The company's customers use its technology to enhance a wide variety of end use products, including engine lubricants and fuel; gear oil and other vehicle related fluids; haudralic fluids and emission control systems; greases and industrial fluids; personal care products and industrial cleaners; paints, coating and inks; and mining chemicals. Lubrizol was founded in 1928 and owns and operates 34 manufacturing plants in 15 countries. The Wickliffe, Ohio based company has 50 Sales and Technical offices and more than 5000 employees work-wide. Its three research centers are located in Wickliffe, Ohio, Hazelwood, England and Kinuuva, Japan.

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.45.59
UK Pound	1	Rs.72.31
Euro	1	Rs.60.73

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		66

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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

1091.952

1316.288

601.908

450.746

740.376

108.724

0.000

0.000

211.340

331.987

2645.576

527.271

446.792

42.869

487.074

148.379

234.980

718.519

722.054

1927.057

1485.691

Unit