MIRA INFORM REPORT

Report Date :

18.03.2014

IDENTIFICATION DETAILS

Name :	CARL BECHEM LUBRICANTS (INDIA) PRIVATE LIMITED (w.e.f. 16.06.2004)
Formerly 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) :	31.03.2013
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 :	Manufacturer and Importer of Lubricants
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 920000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The company has achieved decent profitability from its operation during the financial year 2013. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and condition.

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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

State-run banks hired nearly 300000 personnel including more than 94000 officers in the last four years, according to the Indian Banks Association. A study by trade lobby Assocham in September 2013 indicated that banks would need 800000 people in the next six years. It estimated that state-run lenders alone would hire 50000 people in 2013/14.

The Competition Commission of India plans to issue final orders within a broad time-frame of one year in matters where it decides to carry out detailed investigations. The number of complaints received by the watchdog which keeps tabs on unfair trade practices in the marketplace.

The government has detected custom tax evasion totaling around Rs 37920 mn in 14 states until December. Maharashtra topped the list of Rs 14190 mn followed by Andhra Pradesh at Rs 8140 mn, Gujarat Rs 5240 mn, Karnataka Rs 1670 mn and Tamilnadu Rs 1610 mn.

Connaught Place in New Delhi slipped four notches to become the world’s eighth most expensive office locations. London’s West End is the world’s most expensive office market.

There are 4.072 mn number of high value spenders under the scanner of the income tax department. The income tax department has information that they have made cash deposits announcing to Rs 1 mn or more in their savings bank accounts in the current financial year. It plans to check potential evasion before the closing of the financial year on March 31.

Estimated pharmaceutical sales in the country for 2016 is $ 27 bn. It is 14.4 per cent higher than a year ago. The life sciences and health care industry is up against challenges such as quality management, says a recent Deloitte report.

The gross non-performing assets of listed banks rose 35.2 % to Rs 2.43 lakh crore during the first three months of the financial year. In absolute terms, the 40 listed banks added Rs 3386 crore to their gross NPAs in nine months with the State Bank of India leading with the State Bank of India leading with an accretion of Rs 16610 crore.

The inflow of smuggled gold doubled in 2013 following restrictions to curb the supply from official channels to contain the current account deficit. China surpassed India in the demand for gold for the first time in 2013 due to liberalization of gold trading norms by its local governments.

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 DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-80-22010801)

LOCATIONS

Registered Office / Factory :	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
Area:	2 Acers
Location :	Owned

DIRECTORS

As on 30.09.2013

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/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP 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	04/12/2003	04/12/2003	-	Active	NO
3	U74140KA2004PTC033545	SPATIK CONSULTANTS PRIVATE LIMITED	Director	11/03/2004	11/03/2004	-	Active	NO
4	U85110KA1992PTC013759	INTERNATIONAL POWER CORPORATION Private Limited	Additional director	11/04/2012	11/04/2012	26/11/2012	Active	NO
5	U40102KA2002PTC030448	S L V POWER PRIVATE LIMITED	Additional director	11/04/2012	11/04/2012	15/11/2012	Active	NO
6	U85110KA1998PTC024498	PRASANNA POWER Private Limited	Additional director	11/04/2012	11/04/2012	26/11/2012	Active	NO
7	U40108KA1997PTC022700	TRINETHRA ENERGY CONVERTIONS Private Limited	Additional director	11/04/2012	11/04/2012	26/11/2012	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. Martin Heinrich Walter

Designation :

Director

Address :

In Der Selimecke, 4, Schmallenberg, Germany - 57392

Date of Birth/Age :

16.08.1964

Date of Appointment :

23.02.2011

DIN No :

03345242

Name :

Mr. Anirban Bhattacharya

Designation :

Director

Address :

Flat No.1057, B2, Sunbeam 1, 8/1, Manvarthe Kavat, Thalaghattapura P O BSK, VI Stage Extension, Bangalore - 560062, Karnataka, India

Date of Birth/Age :

20.04.1964

Date of Appointment :

01.09.2012

DIN No :

06368969

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Schleifenbaum Schmte Rungstechnik Verwalt, Germany	40000	3.53
Carl Bechem GMBH, Germany	1094503	96.47
Total	1134503	100.00

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Importer of Lubricants

Products :

Item Code No. (ITC 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 Divulged
Bankers :	Deutsche Bank, M G Road, Bangalore, Karnataka, India

Banking Relations :	--
Auditors :
Name :	R Bhat and Company Chartered Accountants
Address :	Arya Plaza, 3/5, II Floor, Bull Temple Road, Chamarajpet West, Bangalore – 560018, Karnataka, India
Tel No:	91-80-22424932 / 32516578
Mobile No.:	91-9341224764
E-Mail :	rcbhat@sify.com
Income-tax PAN of auditor or auditor's firm :	AAOPB3441J
Parent Company :	Carl Bechem GMBH, Germany
Subsidiary Companies:	· Carl Bechem Lubricants Middle East FZC · Ethna Bechem Europe GmbH, Germany

CAPITAL STRUCTURE

As on 31.03.2013

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	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	11.345	11.345	11.345
(b) Reserves & Surplus	218.129	165.270	131.751
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	229.474	176.615	143.096
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.785	3.925
(b) Deferred tax liabilities (Net)	2.123	2.264	1.370
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	62.071	35.673	19.116
Total Non-current Liabilities (3)	64.194	38.722	24.411
(4) Current Liabilities
(a) Short term borrowings	96.127	97.170	63.584
(b) Trade payables	98.429	78.624	63.237
(c) Other current liabilities	49.242	46.746	41.598
(d) Short-term provisions	0.783	0.664	0.459
Total Current Liabilities (4)	244.581	223.204	168.878
TOTAL	538.249	438.541	336.385
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	143.722	159.846	127.546
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.240	0.230	30.753
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.333	1.333	1.334
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	40.969	25.249	7.409
(e) Other Non-current assets	0.000	0.200	0.445
Total Non-Current Assets	186.264	186.858	167.487
(2) Current assets
(a) Current investments	35.745	0.000	0.000
(b) Inventories	133.589	107.630	88.269
(c) Trade receivables	142.005	101.267	52.119
(d) Cash and cash equivalents	5.347	9.590	3.162
(e) Short-term loans and advances	35.299	33.196	25.348
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	351.985	251.683	168.898
TOTAL	538.249	438.541	336.385

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
SALES
	TOTAL	907.480	733.730	570.150
EXPENSES
	TOTAL	829.340	683.950	514.950
PROFIT/ (LOSS) BEFORE TAX		78.140	49.770	55.190
TAX		25.280	16.250	18.500
PROFIT/ (LOSS) AFTER TAX		52.860	33.520	36.690
EARNINGS IN FOREIGN CURRENCY
	FOB Value Exports	75.146	64.981	27.647
TOTAL EARNINGS		75.146	64.981	27.647
IMPORTS
	Raw Materials	395.726	344.006	274.820
	Capital Goods	0.000	10.050	4.633
	Packing Materials	0.052	0.000	0.035
	Traded Goods	34.007	24.705	3.656
TOTAL IMPORTS		429.785	378.761	283.144
Earnings / (Loss) Per Share (Rs.)		46.59	29.55	36.51

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	5.82	4.57	6.44
Return on Total Assets (PBT/Total Assets}	(%)	14.56	11.39	18.14
Return on Investment (ROI) (PBT/Networth)		0.34	0.28	0.39
Debt Equity Ratio (Total Debt/Networth)		0.42	0.55	0.47
Current Ratio (Current Asset/Current Liability)		1.44	1.13	1.00

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	11.345	11.345	11.345
Reserves & Surplus	131.751	165.270	218.129
Net worth	143.096	176.615	229.474
long-term borrowings	3.925	0.785	0.000
Short term borrowings	63.584	97.170	96.127
Total borrowings	67.509	97.955	96.127
Debt/Equity ratio	0.472	0.555	0.419

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	570.150	733.730	907.480
		28.691	23.680

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	570.150	733.730	907.480
Profit	36.690	33.520	52.860
	6.44%	4.57%	5.82%

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	Yes
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	-----
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

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Long Term from Deutsche Bank	0.000	0.785
SHORT TERM BORROWINGS
Buyers Credit from Deutsche bank	82.519	51.785
Overdraft from Deutsche Bank	13.608	45.385
Total	96.127	97.955

CHANGE OF ADDRESS

The registered office of the company has been shifted from No. 370, 16^th Main Road, 4^th Block, Jayanagar, Bangalore - 500041, Karnataka, India to the present address w.e.f. 01.01.2009

FUTURE PROSPECTS

Based on the results for the year, the directors are confident of achieving much better results in the forthcoming years.

CONTINGENT LIABILITIES (AS ON 31.03.2013):

a) Forward Contract for import payments – Rs. 43.836 Millions (P.Y Rs. Nil).

b) Amount of Bank Guarantees issued by the bank on behalf of the company is Rs. Nil (P.Y. Rs. 0.776 Million).

c) The company has an estimated amount of Rs. Nil (P.Y. Rs. Nil) towards contingent liabilities of capital in nature.

d) EPCG export obligation pending as on 31.03.2013 is USD 1,33,395/- (P.Y. USD 5,57,964.38)

e) Claims against the company not acknowledged as debts – Disputed entry tax liability Rs. Nil. (P.Y. Rs. 0.593 Million). The ruling of the honourable high court of Karnataka vide order dated 17/04/2013 is infavour of the company.

f) Claims against the company not acknowledged as debts – Disputed Service Tax liability of Rs. 3.581 Millions

FIXED ASSETS

· Industrial Land

· Building – Office

· Building – Factory

· Plant and Machineries

· Laboratory Equipments

· Computer

· Office Equipments

· Testing Equipments

· Electrical Installations

· Furniture’s 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.61.52
UK Pound	1	Rs.102.22
Euro	1	Rs.85.23

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	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		48

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.