MIRA INFORM REPORT

Report Date :

02.04.2013

IDENTIFICATION DETAILS

Name :	CARL BECHEM LUBRICANTS (INDIA) PRIVATE LIMITED (w.e.f. 16.06.2004)
Formally Known As :	BANGALORE SPECIALITY LUBRICANTS PRIVATE LIMITED
Registered Office :	No. 28 –D, Bidadi Industrial Area, Bidadi – Harohalli road, Bangalore – 562109, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	04.12.2003
Com. Reg. No.:	08-032976
Capital Investment/ Paid-up Capital:	Rs.11.345 Millions
CIN No.: [Company Identification No.]	U23201KA2003PTC032976
TAN No.: [Tax Deduction & Collection Account No.]	BLRB04099E
PAN No.: [Permanent Account No.]	AACCB3015F
Legal Form :	Private Limited Liability Company
Line of Business :	Developing, Producing and Selling High Performance Lubricants like Industrial Lubricants, Lubricants for Metal Working etc and Additives.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 706456
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of Carl Bechem GmbH, Germany. It is an established company having a satisfactory track record. Financial position of the company appears to be good. Performance capability is high. Trade relations are reported as decent. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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.

LOCATIONS

Registered Office :	No. 28 –D, Bidadi Industrial Area, Bidadi – Harohalli road, Bangalore – 562109, Karnataka,India
Tel. No.:	91-80-22010800 / 22010801 / 22010802
Fax No.:	91-80-22010803
E-Mail :	shashi@bechemindia.com mahesh@bechemindia.com info@bechemindia.com
Website :	http://www.bechem.de

DIRECTORS

(As on 30.09.2011)

Name :

Mr. Natarajan Krishnamoorthy

Designation :

Director

Address :

No.370, 16^th Main Road, 4^th T Block, Jayanagar, Bangalore – 560041, Karnataka, India

Date of Birth/Age :

20.01.1949

Date of Appointment :

04.12.2003

DIN No :

00939659

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	U29304KA2002PTC030520	OPTIMUMAIR SOLUTIONS PRIVATE LIMITED	Director	20/05/2002	20/05/2002	-	Active	NO
2	U23201KA2003PTC032976	CARL BECHEM LUBRICANTS (INDIA) PRIVATE LIMITED	Director	4/12/2003	4/12/2003	-	Active	NO
3	U74140KA2004PTC033545	SPATIK CONSULTANTS PRIVATE LIMITED	Director	11/3/2004	11/3/2004	-	Active	NO

Name :

Mr. Hans Otto Franz

Designation :

Director

Address :

Gertubger Strasse,79, Unna, 59423, Germany – 59423.

Date of Appointment :

16.02.2004

DIN No :

01490730

Name :

Mr. Walter Heinrich Martin

Designation :

Director

Address :

Goethestrasse 25, Herdecke,58313, Germany – 58313, Germany

Date of Birth/Age :

16.08.1964

Date of Appointment :

23.02.2011

DIN No :

03345242

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Schleifenbaum Schmte Rungstechnik Verwalt, Germany	40000
Carl Bechem GMBH, Germany	1094503
Total	1134503

AS ON 29.09.2012

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Developing, Producing and Selling High Performance Lubricants like Industrial Lubricants, Lubricants for Metal Working etc and Additives.

Products :

Item Code	Product Description
2710.00	Lubricants

• Coolant Lubricants
• Corrosion Protection Oils
• Cutting and Grinding Oils
• Fitting Lubrication
• Anti – Frictions – Coatings Lubricants
• Deep Drilling Oils
• Automotive Industry Lubricants
• Chain Oils
• Electronical Contact Lubricants
• Low and High temperature Lubricants

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Deutsche Bank

Facilities :

Unsecured Loan	31.03.2012	31.03.2011
	(Rs. In Millions)
Buyers Credit from Deutsche bank	51.785	5.748
Overdraft from Deutsche Bank	45.384	45.888
Bills Discounting from Deutsche Bank	0.000	11.948
Long Term from Deutsche Bank	0.785	3.925
Total	97.954	67.509

Banking Relations :	--
Auditors :
Name :	Ramchandra Bhat Chartered Accountant
Address :	Arya Plaza, 3/5, II Floor, Bull Temple Road, Chamarajpet West, Bangalore – 560018, Karnataka, India
Qualification :	Bcom., L.L.B., F.C.A.
PAN No.:	AAOPB3441J
Tel No:	91-80-22424932 / 32516578
Mobile No.:	91-9341224764
E-Mail :	rcbhat@sify.com
Major Markets :	Indian Subcontinent South/West Africa East Asia North America
Parent Company :	Carl Bechem GMBH, Germany
Subsidiaries Company:	· Carl Bechem Lubricants Middle East FZC · Ethna Bechem Europe GmbH, Germany

CAPITAL STRUCTURE

(As on 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Share	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,134,503	Equity Share	Rs.10/- each	Rs.11.345 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.032011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		11.345	11.345	9.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		165.269	131.751	67.687
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		176.614	143.096	77.187
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		97.954	67.509	84.177
TOTAL BORROWING		97.954	67.509	84.177
DEFERRED TAX LIABILITIES		2.264	1.370	0.704
TOTAL		276.832	211.975	162.068
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		159.845	127.546	126.044
Capital work-in-progress		0.230	30.752	0.273
INVESTMENT		1.334	1.334	1.334
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	107.630	88.269	75.609
	Sundry Debtors	101.267	52.119	41.055
	Cash & Bank Balances	9.590	3.162	7.350
	Other Current Assets	0.200	0.446	0.000
	Loans & Advances	58.445	32.756	29.797
Total Current Assets		277.132	176.752	153.811
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	78.625	63.236	100.799
	Other Current Liabilities	46.746	41.598	12.531
	Provisions	36.338	19.575	6.064
Total Current Liabilities		161.709	124.409	119.394
Net Current Assets		115.423	52.343	34.417
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		276.832	211.975	162.068

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
		TOTAL INCOME	733.730	570.150	474.030
Less		EXPENDITURE	683.950	514.950	459.460
	PROFIT BEFORE TAX		49.770	55.190	14.570
Less	TAX		16.250	18.500	4.730
	PROFIT AFTER TAX		33.520	36.690	9.840
	EARNINGS IN FOREIGN CURRENCY		64.981	27.647	11.056
	IMPORTS
		Raw Materials	351.626	274.820	225.845
		Capital Goods	10.050	4.633
		Packing Materials	0.000	0.039	0.000
		Traded Goods	17.085	3.656	3.294
	TOTAL IMPORTS		378.761	283.148	3.294
	Earnings Per Share (Rs.)		29.55	36.51	10.36

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.57	5.64	2.08
Return on Total Assets (PBT/Total Assets}	(%)	11.39	18.14	5.21
Return on Investment (ROI) (PBT/Networth)		0.28	0.39	0.19
Debt Equity Ratio (Total Debt/Networth)		0.55	0.47	1.09
Current Ratio (Current Asset/Current Liability)		1.71	1.42	1.29

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	No
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

Note:

The registered office of the company has been shifted from #370, 16^th Main Road, 4^th Block, Jayanagar, Bangalore - 500044, Karnataka, India to the present address w.e.f. 01.01.2009

FIXED ASSETS:

• Industrial Land
• Building – Office
• Building – Factory
• Plant and Machineries
• Laboratory Equipments
• Computer / Softwares
• Office Equipments
• Testing Equipments
• Electrical Installations
• Furnitures and Fixtures

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.54.39
UK Pound	1	Rs.82.32
Euro	1	Rs.69.54

INFORMATION DETAILS

Report Prepared by :

SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		51

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.