MIRA INFORM REPORT

Report Date :

26.11.2011

IDENTIFICATION DETAILS

Name :	LINCOLN HELIOS (INDIA) LIMITED w.e.f 21.04.1994
Formerly Known As :	GRINDWELL LUBE LIMITED
Registered Office :	Devanahalli Road, Off Old Madras Road, Virgonagar Post, Bangalore – 560049, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.02.1993
Com. Reg. No.:	08- 044269
Capital Investment / Paid-up Capital :	Rs. 10.000 Millions
CIN No.: [Company Identification No.]	U23200KA1993PLC044269
TAN No.: [Tax Deduction & Collection Account No.]	BLRL00523F
PAN No.: [Permanent Account No.]	AAACL2061P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacture, Purchase and Sale of Centralised Lubrication Systems and Perts thereof.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (60)

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 3127000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. General financial position is good. 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	Devanahalli Road, Off Old Madras Road, Virgonagar Post, Bangalore – 560049, Karnataka, India
Tel. No.:	91-80-28472727/28472424/30710000
Fax No.:	91-80-28472566/30710001
E-Mail :	sandip_sen@lincoinindia.com ravi_b@lincolniindia.com mktg@lincolnindia.com
Website :	www.lincolnindia.com
Overseas Office :	Located at : Germany Singapore Tokyo China Netherlands Russia UK Seoul

DIRECTORS

As on 30.09.2011

Name :

Mr. Shishir Shirish Joshipura

Designation :

Director

Address :

Flat No.A-7, ICS Colony, Shivaji Nagar, Pune – 411016, Maharashtra, India

Date of Birth/Age :

22.01.1962

Date of Appointment :

23.03.2011

DIN No.:

00574970

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U29219PN1987PLC045658	Thermax Sustainable Energy Solutions Limited	Director	12-07-10	13-12-00	-	Active	NO
2	U40109PN2009PLC134659	Thermax Onsite Energy Solutions Limited	Director	14-09-09	14-09-09	30-11-09	Active	NO
3	L29130MH1961PLC011980	SKF India Limited	Managing director	23-04-10	01-12-09	-	Active	NO
4	U23200KA1993PLC044269	Lincoln Helios (India) Limited	Director	08-09-11	23-03-11	-	Active	NO

Name :

Mr. Herbert Kannegiesser

Designation :

Director

Address :

Obligser Strasse, 54 , D – 40591, Dusseldorf, Germany, D - 40591

Date of Birth/Age :

16.09.1950

Date of Appointment :

01.01.1996

DIN No.:

00716537

Name :

Mr. Sandip Sen

Designation :

Managing Director

Address :

No.919, 3^rd Cross, Kalyan Nagar, 1 Block, HRBR Layout, Bangalore- 560043, Karnataka, India

Date of Birth/Age :

17.09.1956

Date of Appointment :

01.06.2001

DIN No.:

00716708

Name :

Mr. Chandramowli Srinivasan

Designation :

Director

Address :

Flat. 10, Building No.D1, Ratan Park, Phase ll, Sus Road, Pashan, Pune – 411021, Maharashtra, India

Date of Birth/Age :

01.12.1962

Date of Appointment :

24.06.2011

DIN No.:

02591964

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U29195KA1997PTC027954	SKF Technologies (India) Private Limited	Director	10-03-09	10-03-09	-	Active	NO
2	U23200KA1993PLC044269	Lincoln Helios (India) Limited	Director	08-09-11	24-06-11	-	Active	NO

Name :

Mr. Deller Dominic Thilo

Designation :

Director

Address :

4106181768, Eschborn 1B, Feldbergstrasse, 65760

Date of Birth/Age :

01.02.1969

Date of Appointment :

01.10.2009

DIN No.:

02798095

Name :

Mr. Daniel Edward Reed

Designation :

Director

Address :

560, Bennington CT, Harleysville PA, 19438

Date of Birth/Age :

24.12.1955

Date of Appointment :

24.06.2011

DIN No.:

03403379

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Lincoln GMBH, Germany	999994
Mark Devid Leeker	1
Samuel Austin Hamacher	1
Michael Phillip Santoni	1
Bart Aaron Aitken	1
Shannon Dale Palmer	1
Lincoln Industries Corporation, USA	1
TOTAL	1000000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacture, Purchase and Sale of Centralised Lubrication Systems and Perts thereof.
Products/ Services :	Dual Line Systems Single Line Parallel Systems Ink Transfer Systems Oil Circulating Systems Multiline Systems Chain Lubrication Systems

PRODUCTION STATUS

As on 31.03.2011

Installed Capacity and Production

Particulars	2010-2011
Installed Capacity and Production	Qty
Products
Centromatic Systems	2204
Dual Line Systems	6598
ESBU Manufactured Products	141677
Manufactured Spares	78453
General Line Systems	2630
Ink Systems	396
Multi Line Systems	88
Quick Line Systems	8164
Refining Systems	681
Spray Systems	555
Oil Circulation Systems	147
Hydraulic Fittings	970031
Others	62

Notes: Production is based on labour resources and therefore there is no fixed capacity for the company.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Bank of Baroda, Industrial Finance Branch, Baroda House, C.P. Street, Fort, Mumbai – 400001, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	5^th Floor, Tower The Mellenia, 1 and 2 Murphy Road, Ulsoor, Bangalore – 560008, Karnataka, India
PAN.:	AAEFP3641G
Holding Company :	Lincoln GMBH Germany Address : Franciscushof 63, NL – 4133 BB Vianen (ZH) Ph No.: +31-347-344-119 Fax No.: +31-347-344-212
Ultimate Holding Company :	Harbour Group Industries Inc (upto December 28, 2010) SKF Svergie AB (with effect from December 29, 2010)
Fellow Subsidiaries :	Lincoln Industrial Corporation, US Lincoln Industrial Limited, UK Lincoln Lubrication Equipment, Changshu Lincoln Orosco Alemite LLC, US

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Notes: 1000000 Equity shares of Rs. 10 each are held by Lincoln GmBH, the company and its nominees

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		10.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		771.703	535.163	315.544
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		781.703	545.163	325.544
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		0.000	0.000	0.000
TOTAL		781.703	545.163	325.544
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		174.404	41.867	40.619
Capital work-in-progress		0.000	17.776	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		28.481	20.358	13.680
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	274.691	209.831	163.499
	Sundry Debtors	409.404	316.608	320.361
	Cash & Bank Balances	137.146	166.527	344.325
	Other Current Assets	32.001	9.229	12.654
	Loans & Advances	42.531	42.070	11.259
Total Current Assets		895.773	744.265	852.098
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	216.549	190.170	114.745
	Other Current Liabilities	70.468	67.589	58.679
	Provisions	29.938	21.344	407.429
Total Current Liabilities		316.955	279.103	580.853
Net Current Assets		578.818	465.162	271.245
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		781.103	545.163	325.544

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Turnover	1259.618	888.374	1096.574
		Income from Services	10.690	10.724	11.021
		Other Income	12.362	29.673	43.708
		TOTAL (A)	1282.670	928.771	1151.303
Less	EXPENSES
		Material Consumed	575.378	398.026	493.116
		Manufacturing Expenses	60.697	34.040	48.134
		Personnel Expenses	153.140	102.607	102.782
		Administrative and Other Expenses	125.291	75.669	86.983
		TOTAL (B)	914.506	610.342	731.015
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		368.164	318.429	420.288
Less	FINANCIAL EXPENSES (D)		4.275	3.446	4.113
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		363.889	314.983	416.175
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.940	5.242	5.942
	PROFIT BEFORE TAX (E-F) (G)		353.949	309.741	410.233
Less	TAX (H)		117.409	101.822	141.815
	PROFIT AFTER TAX (G-H) (I)		236.540	207.919	268.418
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		409.152	210.325	354.833
Less	APPROPRIATIONS
		Proposed Dividend	-	(10.000)	330.000
		Tax on Proposed Dividend	-	(1.700)	56.084
		Transfer to General Reserve	23.654	20.792	26.842
	SURPLUS CARRIED FORWARD		622.038	409.152	210.325
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on FOB Basis	150.617	84.099	93.094
		Packaging/ Freight	0.787	0.227	1.870
		Commission	0.257	0.918	5.928
	TOTAL EARNINGS		151.661	85.244	100.892
	IMPORTS
		Raw Materials	216.108	178.834	217.206
		Components, Spares Parts etc	36.177	16.741	9.618
		Capital Goods	16.355	0.799	7.769
	TOTAL IMPORTS		268.640	196.374	234.593
	Earnings Per Share (Rs.)		236.54	207.92	268.42

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	18.44	22.39	23.31
Net Profit Margin (PBT/Sales)	(%)	27.86	34.45	37.04
Return on Total Assets (PBT/Total Assets}	(%)	33.07	39.40	45.95
Return on Investment (ROI) (PBT/Networth)		0.45	0.57	1.26
Debt Equity Ratio (Total Liability/Networth)		0.41	0.52	1.78
Current Ratio (Current Asset/Current Liability)		2.83	2.67	1.47

LOCAL AGENCY FURTHER INFORMATION

NOTES: The registered address of the company has been changed from Army and Navy Building, M.G. Road, Mumbai – 400001, Maharashtra, India to present address w.e.f 18.09.2007

OPERATION

Due to improvement in Indian economy the company has done well in sales exceeding to previous year’s figures. Total turnover during the year 2010-2011 were Rs. 1270.310 Millions 41.29% up as compared to previous year. Profit before tax was 353.950 millions or 27.86% of net sales as compared to prior year’s 309.74 millions or 34.45% of net sales. However, earning per share as increased to Rs. 236.54 per share during the year as compared to Rs. 207.92 per share in the previous year.

During the year the company has obtained new leased premises for manufacturing of oil circulation systems and also acquired 10.31 acres of land on ownership basis at Bangalore for further capacity expansion plan.

During the year SKF group has purchased Lincoln Lubrication systems group business by acquiring Lincoln Holding Enterprises Inc, the holding company encompassing all the LSG Global entitles. Hence forth the company is also therefore a part of the SKF group and directors of the company are pleased to be part of a leading multinational company. The company excepts that the acquisition shall support technical development, Innovation quality and Marketing.

OUTLOOK

The company exports were Rs. 150.620 Millions for the current year as against Rs. 84.100 Millions in the previous year. The company continues to be a sourcing base for Lincoln GmBH for components of dual line systems.

CONTINGENT LIABILITIES

Rs. in Millions

Particulars	2010-2011	2009-2010
a) Bank Guarantee	46.945	73.282
b) Claims made against the company not acknowledge as debts:
- Excise Duty	0.253	0.253
- Service Tax	2.178	1.080
- Sales Tax/ Value Added Tax	11.961	11.961

FORM 8

Corporate identity number of the company	U23200KA1993PLC044269
Name of the company	LINCOLN HELIOS (INDIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	Devanahalli Road, Off Old Madras Road, Virgonagar Post, Bangalore – 560049, Karnataka, India Email : Sandip_sen@lincolindia.com
This form is for	Creation of charge
Type of charge	Book Debts
Particular of charge holder	Bank of Baroda, Industrial Finance Branch, Baroda House, C.P. Street, Fort, Mumbai – 400001, Maharashtra, India Email : brigad@bankofbaroda.com
Nature of instrument creating charge	Stock of raw material, finished goods, book debts, outstanding money receivables, claims
Date of instrument Creating the charge	11.11.2009
Amount secured by the charge	Rs. 83.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 1.00% below. BPLR Present at 11.00% monthly reset interest is to be serviced as and when the same is debited to the account Terms of Repayment: Repayable on demand Margin: 25% on stocks, 25% on book debts Extent and operation of the charge: NA
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Stock of raw material, finished goods, book debts, outstanding money receivables, claims

FIXED ASSETS

• Land
• Leasehold Improvement
• Plant and Machinery
• Computers
• Office Equipment
• Furniture and Fixtures
• Vehicles
• Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.17
UK Pound	1	Rs.80.64
Euro	1	Rs.69.43

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	7
--PROFITABILIRY	1~10	6
--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	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		60

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.