MIRA INFORM REPORT

Report No. :	337338
Report Date :	18.08.2015

IDENTIFICATION DETAILS

Name :	CASTROL INDIA LIMITED
Registered Office :	Technopolis Knowledge Park, Mahakali Caves Road, Andheri (East), Mumbai – 400093, Maharashtra
Tel. No.:	91-22-56984100
Country :	India
Financials (as on) :	31.12.2014
Date of Incorporation :	31.05.1979
Com. Reg. No.:	11-021359
Capital Investment / Paid-up Capital :	Rs.2472.806 Million
CIN No.: [Company Identification No.]	L23200MH1979PLC021359
IEC No.:	0388032073
TAN No.: [Tax Deduction & Collection Account No.]	MUMC03626A
PAN No.: [Permanent Account No.]	AAACC4481E
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing and marketing of Automotive, Non-Automotive Lubricants and related services.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

A (65)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is an established company having a fine track. Financial position of the company seems to be sound. Trade relations are reported as fair. Business is active. Payment terms 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.

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

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 31-03-2013.

INFORMATION DECLINED

Management non co-operative (Tel No.:91-22-66984100)

LOCATIONS

Registered Office :	Technopolis Knowledge Park, Mahakali Caves Road, Andheri (East), Mumbai – 400093, Maharashtra, India
Tel. No.:	91-22-56984100 / 22-66984100
Fax No.:	91-22-56984101 / 22-66984101
E-Mail :	info@castrol.co.in sumit.tyagi@castrol.com aspi.mody@castrol.com rashmi.joshi@castrol.com sandeep.deshmukh@se1.bp.com
Website :	http://www.castrol.com www.castrol.co.in

DIRECTORS

As on 31.12.2014

Name :	Mr. Susim Mukul Datta
Designation :	Chairman
Address :	104b, Bakhtavar, Lower Colaba Road, Colaba, Mumbai 400005, Mumbai, 400005, Maharashtra, India
Date of Appointment :	01.07.1996
DIN No.:	00032812
Name :	Mr. R. Gopalakrishnan
Designation :	Independent Director
Address :	101 Baug E Abbas, 21-A Cuffe Parade, Mumbai, 400005, Maharashtra, India
Date of Appointment :	17.10.2000
DIN No.:	00027858
Name :	Mr. Uday Chander Khanna
Designation :	Independent Director
Address :	Centrum Towers, Flat 182, Centrum Co-operative, Society Ltd., Barkat Ali Road, Wadala, Mumbai, 400037, Maharashtra, INDIA
Date of Appointment :	03.01.2012
DIN No.:	00079129
Name :	Mr. Ralph Rex Hewins
Designation :	Nominee Director
Address :	18 Lock Road, Marlow, Marlow Buckinghamshire, Sl71qw, , United Kingdom
Date of Appointment :	28.12.2009
DIN No.:	02895504
Name :	Mr. Peter Weidner
Designation :	Nominee Director
Address :	14 Yarwood Avenue, Singapore, Singapore, 587986, , Singapore
Date of Appointment :	05.04.2012
DIN No.:	03620389
Name :	Mr. Sashi Mukundan
Designation :	Nominee Director
Address :	10th, 11th And 12th Floor, CLEFEPETE Building,, 75, Carter Road, Bandra (W),, Mumbai, 400050, Maharashtra, INDIA
Date of Appointment :	21.04.2009
DIN No.:	02519725
Name :	Mr. Ravi Kirpalani
Designation :	Nominee Director
Address :	51, 2nd Floor, Hill Park,, A G Bell Marg, Malabar Hill, Mumbai, 400006, Maharashtra, India
Date of Appointment :	01.05.2009
DIN No.:	02613688
Name :	Ms. Rashmi Satish Joshi
Designation :	Director - Finance
Address :	E/1303 Runwal Centre Chs. Limited, Govandi Station Road, Devnar, Mumbai, 400088, Maharashtra, India
Date of Appointment :	01.08.2013
DIN No.:	06641898
Name :	Mr. Jayanta Chatterjee
Designation :	Director – Supply Chain
Address :	Falt 3002, Octavius, Hiranandani Gardens, Powai, Mumbai, 400076, Maharashtra, India
Date of Appointment :	30.10.2014
DIN No.:	06986918

KEY EXECUTIVES

Name :	Mr. Sandeep Deshmukh
Designation :	Company Secretary
Address :	Flat No.104, Eden-3b, Hiranandani, Powai, Mumbai, 400093, Maharashtra, India
Date of Appointment :	03.02.2014
PAN No.:	AAMPD5903B
Name :	Mr. Rashmi Satish Joshi
Designation :	Chief Executive Officer
Address :	E/1303 Runwal Centre Chs. Limited, Govandi Station Road, Devnar, Mumbai, 400088, Maharashtra, India
Date of Appointment :	31.07.2014
PAN No.:	AAFPJ1609K

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2015

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	351291716	71.03
Sub Total	351291716	71.03
Total shareholding of Promoter and Promoter Group (A)	351291716	71.03
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	7927396	1.60
Financial Institutions / Banks	1185400	0.24
Insurance Companies	25841657	5.23
Foreign Institutional Investors	28109931	5.68
Any Others (Specify)	5208757	1.05
Others	5208757	1.05
Sub Total	68273141	13.80
(2) Non-Institutions
Bodies Corporate	8037887	1.63
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	58111687	11.75
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	8842761	1.79
Any Others (Specify)	4000	0.00
Overseas Corporate Bodies	4000	0.00
Sub Total	74996335	15.16
Total Public shareholding (B)	143269476	28.97
Total (A)+(B)	494561192	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	494561192	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.	Name of the Shareholder	Details of Shares held		Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Castrol Limited	35,07,49,820	70.92	70.92
2	BP Mauritius Limited	5,41,896	0.11	0.11
	Total	35,12,91,716	71.03	71.03

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

. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Life Insurance Corporation of India	21110801	4.27	4.27
2	Aberdeen Global Indian Equity (Mauritius) Limited	6400000	1.29	1.29
	Total	27510801	5.56	5.56

BUSINESS DETAILS

Line of Business :	Manufacturing and marketing of Automotive, Non-Automotive Lubricants and related services.
Products / Services :	Automotive, Non-Automotive Lubricants and related services.
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

Information declined by the management

Bankers :

• Deutsche Bank
• HDFC Bank Limited
• The Hong Kong and Shanghai Banking Corporation Limited
• State Bank of India
• Citibank N.A.
• DBS Bank Limited
• J P Morgan Chase Bank N.A.

Auditors :
Name :	S. R. Batliboi and Company LLP Chartered Accountants
Address :	29, senapati Bapat Marg, Dadar (West), Mumbai – 400028, Maharashtra, India
Tel. No.:	91-22-61920000
Fax No.:	91-22-61921000
Memberships :	Not Available
Collaborators :	Not Available
Holding Companies :	Castrol Limited, U.K. (Holding Company of Castrol India Limited) Burmah Castrol PLC (Holding Company of Castrol Limited, U.K.) BP PLC (Holding Company of Burmah Castrol PLC), Ultimate Holding Company
Fellow Subsidiaries : (where transaction exists)	AsPac Lubricants (Malaysia) Sdn. Bhd BP – Castrol (Thailand) Limited BP (China) Industrial Lubricants Limited BP Asia Pacific (Malaysia) Sdn. Bhd BP Australia Pty Limited BP Castrol K.K. BP Corporation North America Inc BP Europa SE BP Europa SE – BP Belgium (Branch) BP Europa SE Zweigniederlassung – BP Austria BP Exploration (Alpha) Limited BP Exploration Operating Company Limited BP France BP France SA Branch Office (Trading as BP Middle East) BP India Services Private Limited BP International Limited BP Italia SpA BP Japan K.K. BP Korea Limited BP Lubricants USA Inc BP Marine Limited BP Mauritius Limited BP Middle East (Auto And Marine Lubes) BP Middle East Llc BP Oil Belgium – Lubesco BP Oil International Ltd. BP Petrolleri Anonim Sirketi BP Products North America Inc BP Singapore Pte. Limited BP Southern Africa (Proprietary) Limited BP Taiwan Marketing Limited Castrol (China) Limited Castrol (Shenzhen) Company Limited Castrol (Shenzhen) Company Limited – Shanghai Pudong Castrol BP Petco Limited Liability Company Castrol Industrial North America Inc Castrol Philippines, Inc Lubricants UK Limited

CAPITAL STRUCTURE

As on 31.12.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
990000000	Equity Shares	Rs.5/- each	Rs.4950.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
494561192	Equity Shares	Rs.5/- each	Rs.2472.800 Million

Note (i) Pursuant to the approval by the shareholders and consequent to the scheme of reduction of share capital becoming effective, the Company has altered the authorised share capital to 990,000,000 equity shares of Rs. 5/- each effective from January 20, 2014.

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

Equity shares	As at December 31, 2014
	No. of Shares	Rs. In Million
At the beginning of the year	494,561,192	4945.600
Reduction in fully paid-up face value of equity shares	--	2472.800
Outstanding at the end of the year	494,561,192	2472.800

Note (i) Pursuant to the scheme of reduction of share capital u/s 100 to 105 of the Companies Act, 1956 as approved by the shareholders and Hon’ble High Court of Bombay, the Company has reduced the fully paid-up face value of equity shares from Rs.10/- per share to Rs. 5/- per share effective January 20, 2014. Consequently, the Company has paid Rs. 5/- per share on March 10, 2014 to the shareholders as per the record date of March 3, 2014.

b. Terms/rights attached to equity shares:

The Company has only one class of equity shares having par value of Rs. 5/- per share (2013: Rs. 10/- per share). Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approvals of the shareholders in the ensuing Annual General Meeting. The Company declares and pays dividend in Indian Rupees.

During the year ended December 31, 2014, the amount of per share interim dividend recognised as distribution to

equity shareholders was Rs. 3.50 (2013 : Rs. 3.50). The amount of interim dividend distributed to equity shareholders is Rs. 1731.000 Million (2013 : Rs. 1731.000 Million). In addition, the Company has also proposed a per share final dividend recognised as distribution to equity shareholders of Rs. 4.00 (2013 : Rs. 3.50). The amount of final proposed dividend distributed to equity shareholders is Rs. 1978.200 Million (2013 : Rs. 1731.000 Million). Both dividends aggregating to Rs. 7.50 per share (2013 : Rs. 7.00 per share).

In the event of the Company being liquidated, since the equity shares of the Company are fully paid-up, there would be no additional liability on the shareholders of the Company. However, post settlement of the liabilities of the Company, the surplus, if any, would be distributed amongst the shareholders in proportion to the number of shares held by each one of them.

c. Equity shares in the Company held by its holding/ultimate holding company and/or their subsidiaries/associates are as below:

	As at December 31, 2014 Rs. In Million
Castrol Limited, U.K. 350,749,820 (2013 : 350,749,820) equity shares of Rs. 10/- each fully paid (holding company)	1753.700
BP Mauritius Limited 541,896 (2013 : 541,896) equity shares of Rs. 10/- each fully paid (subsidiary of ultimate holding company)	2.700

d. Aggregate number of bonus shares issued, for consideration other than cash during the period of five years immediately preceding the reporting date:

	As at December 31, 2014 No. of Shares
Equity shares allotted as fully paid bonus shares by capitalisation of general reserve	370,920,894

e. Details of shareholder holding more than 5% shares in the Company are as below:

Equity shares	As at December 31, 2014
	No. of Shares	% holding in the class
Equity shares of Rs. 5/- each (2013 : Rs. 10/- each) fully paid-up Castrol Limited, U.K.	350,749,820	70.92%

As per of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2014	31.12.2013	31.12.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2472.800	4945.600	4945.600
(b) Reserves & Surplus	2495.000	2568.600	1546.700
(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)	4967.800	7514.200	6492.300
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	110.300	108.300	82.900
(d) long-term provisions	26.400	24.800	34.300
Total Non-current Liabilities (3)	136.700	133.100	117.200
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	5398.600	4728.300	4366.300
(c) Other current liabilities	1373.500	1209.500	1185.800
(d) Short-term provisions	3041.800	2565.000	2634.100
Total Current Liabilities (4)	9813.900	8502.800	8186.200
TOTAL	14918.400	16150.100	14795.700
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1622.100	1432.200	1250.700
(ii) Intangible Assets	98.600	2.400	10.500
(iii) Capital work-in-progress	156.700	318.700	309.600
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	618.100	529.600	650.900
(d) Long-term Loan and Advances	850.300	875.900	848.500
(e) Other Non-current assets	0.000	0.000	2.600
Total Non-Current Assets	3345.800	3158.800	3072.800
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	3654.700	3740.100	3157.600
(c) Trade receivables	2715.000	2372.400	2166.200
(d) Cash and cash equivalents	4314.500	5942.200	5745.900
(e) Short-term loans and advances	862.100	864.400	510.300
(f) Other current assets	26.300	72.200	142.900
Total Current Assets	11572.600	12991.300	11722.900
TOTAL	14918.400	16150.100	14795.700

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.12.2014	31.12.2013	31.12.2012
	SALES
	Revenue from Operations	33923.300	31796.200	31208.600
	Other Income	160.600	350.600	308.400
	TOTAL (A)	34083.900	32146.800	31517.000
Less	EXPENSES
	Cost of Materials Consumed	17604.600	16814.200	16894.400
	Purchases of Stock-in-Trade	1602.300	1384.700	1468.300
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	168.100	(314.200)	(120.000)
	Employees benefits expense	1615.600	1459.700	1284.000
	Exceptional Items	0.000	(228.000)	0.000
	Interest Income	(320.400)	(485.800)	(413.400)
	Other expenses	5765.500	5577.000	5452.700
	TOTAL (B)	26435.700	24207.600	24566.000
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	7648.200	7939.200	6951.000
Less	FINANCIAL EXPENSES (D)	23.800	17.100	21.400
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	7624.400	7922.100	6929.600
Less/ Add	DEPRECIATION/ AMORTISATION (F)	361.300	304.500	266.400
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	7263.100	7617.600	6663.200
Less	TAX (H)	2517.500	2531.900	2189.300
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	4745.600	5085.700	4473.900
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	27.900	32.000	48.100
	Supplies to foreign vessels	38.300	37.800	98.400
	Commission	22.700	46.700	52.100
	Energy Supplies	11.400	16.500	12.200
	Others	38.900	30.800	25.500
	TOTAL EARNINGS	139.200	163.800	236.300
	IMPORTS
	Raw Materials	8285.700	7587.900	7731.900
	Capital Goods	131.300	66.300	58.300
	TOTAL IMPORTS	8417.000	7654.200	7790.200
	Earnings / (Loss) Per Share (Rs.)	9.6	10.28	9.05

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.12.2014	31.12.2013	31.12.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	7945.800	6512.700	6836.200
Net cash flow from operating activity	5476.000	3964.500	4671.600

KEY RATIOS

PARTICULARS		31.12.2014	31.12.2013	31.12.2012
Net Profit Margin (PAT / Sales)	(%)	13.99	15.99	14.34
Operating Profit Margin (PBIDT/Sales)	(%)	22.55	24.97	22.27
Return on Total Assets (PBT/Total Assets}	(%)	51.35	49.78	48.16
Return on Investment (ROI) (PBT/Networth)		1.46	1.01	1.03
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.18	1.53	1.43

STOCK PRICES

Face Value	Rs.5/-
Market Value	Rs. 490.25/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.12.2012	31.12.2013	31.12.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	4945.600	4945.600	2472.800
Reserves & Surplus	1546.700	2568.600	2495.000
Net worth	6492.300	7514.200	4967.800
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2012	31.12.2013	31.12.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	31208.600	31796.200	33923.300
		1.883	6.690

NET PROFIT MARGIN

Net Profit Margin	31.12.2012	31.12.2013	31.12.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	31208.600	31796.200	33923.300
Profit	4473.900	5085.700	4745.600
	14.34%	15.99%	13.99%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	No
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	Yes
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

LITIGATION DETAILS
Lodging No:-	STRL/71/2013	Failing Date:-	28/11/2013	Reg. No.:-	STR/13/2014	Reg. Date:-	25/02/2014
Petitioner:-	THE COMMISSIONER OF SALES TAX, MAHARASHTRA		Respondent:-	M/S CASTROL INDIA LTD-
Petn.Adv:-	GOVT PLEADER (0)
District:-	MUMBAI
Bench:-	DIVISION		Category:-	SALES TAX REFERENCES
Status:-	Pre-Admission
Act:-	Code of civil Procedure 1908

PRESS RELEASE

CASTROL INDIA DELIVERS STRONG Q2 2015 RESULTS

Net Up 48% At Rs. 184.5 Crores

Unaudited Financial Results for the Half Year Ended June 30, 2015 

	Q2 Apr - Jun 2015	Q2 Apr - Jun 2014	Q2 % Inc/ (Dec)	1H Jan - Jun 2015	1H Jan - Jun 2014	1H % Inc/ (Dec)
Net Sales / Income from Operations	9236.000	9137.000	11.000	17228.000	17307.000	(5.000)
Profit Before Tax	2818.00	1888.000	493.000	5046.000	3418.000	476.000
Profit After Tax	1845.000	1244.000	483.000	3312.000	2246.000	475.000

Castrol India Limited today announced its results for the second quarter of 2015. The company delivered a record performance during April – June 2015, continuing to build on operational momentum and driven by a more favorable cost of goods environment.

Profit from operations during the quarter under review was up by 49 % at Rs. 2668.000 Million whilst Profit after Tax was up by 48 % at Rs. 1845.000 Million as compared to the same period last year.

For the six month period January – June 2015, Profit after Tax was up by 47.5 % to Rs. 3312.000 Million as against Rs. 2246.000 Million during the same period in the previous year.

The Board of Directors of the company, have at their meeting held on 29 July 2015, declared an Interim Dividend of Rs 4.00 per share for the year ending 31 December 2015 (2014: Interim Dividend - Rs.3.50 per share). The interim dividend would be paid to those shareholders whose names appear in the Register of Members at the close of business hours on 8th August 2015 and would be payable on 20th August 2015.

Commenting on the results, Ravi Kirpalani, Managing Director, Castrol India Limited, said: “This is a strong set of financial results for the quarter, underpinned by prudent margin management, premiumization of our portfolio and good progress on key strategic drivers.”

Mr. Kirpalani further added: “We continue to build on the strong momentum in the personal mobility business. Castrol Active, the growth engine of the two-wheeler segment, delivered a strong performance, building on the innovative and successful digital campaign run during the first quarter for the ICC Cricket World Cup 2015. We also made a strong foray in the rural markets through a rural engagement programme leveraging virtual reality to engage with consumers and mechanics. The campaign has received very encouraging response from all key stakeholders.

In the passenger car segment, the growth was largely delivered through Castrol MAGNATEC which was promoted through its unique micro-marketing programme and the Castrol MAGNATEC mobile unit. In the commercial vehicle oils, Castrol Vecton launched during the first quarter has been performing exceptionally well in the market place.”

Commenting on the Industrial business, Mr. Kirpalani said: “In our focus product category of High Performance Lubes, sales volume grew strongly with successful acquisition of new customers in Wind Energy ans Mining segments. In the core product category of metal working fluids, we have maintained our market share despite sluggish manufacturing activity and challenging competitive environment.”

OUTLOOK:

The strong result during the first half of the year has been achieved in an environment which continues to be challenging for the Commercial Vehicle Oils segment and Industrial lubricant oil demand is still under pressure. Looking ahead, although the drop in crude oil price has translated into lower base oil cost, we are likely to experience volatility in the cost of goods due to volatile Rupee exchange rate. In the longer run, we continue to remain optimistic about the Indian lubricant market and our business growth. The company is in a strong position to benefit from growth prospects on account of its strong brands, enduring relationships with key stakeholders and continued commitment of its staff.

PERFORMANCE

Sales realisation of the Company has increased by about 7% over the previous year to Rs. 39070.000 Million, mainly due to an increase in per unit sales realizations. However, the sales volumes have declined by 1% over the previous year. Cost of material, has increased by about 8% over the previous year to Rs. 1938.000 Million primarily due to weakening of Rupee. Despite the challenging economic environment, its the performance of personal mobility brands which has helped the Company to improve its unit gross margins and gross profit. Operating and other expenses increased by about Rs. 400.000 Million as compared to the previous year mainly due to inflation. Profit from operations has increased by about 4%.

Profit Before Tax decreased by about 5% over previous year to Rs. 7263.000 Million. Profit After Tax decreased by 7% over the previous year to Rs. 4746.000 Million.

The Company’s performance has been discussed in detail in Management Discussion and Analysis Report.

Future plan of action

Innovation is a journey and the Company is well placed to ensure that it continues to maintain a strong track record in this field. The Company will continue its focus on generating fuel efficient products for its consumers, strengthening its synthetic technology based portfolio and working on the state-of-the-art technologies of modelling to fast track product development cycles.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Pursuant to Clause 49 of the Listing Agreement, a Management Discussion and Analysis Report covering segment-wise performance and outlook is given below:

(A) Industry structure and developments – 2014

The Company operates across all three major market sectors of the lubricants industry – Automotive, Industrial and Marine and Energy applications. The overall industry is led by theCompany and the Indian national oil companies, who contribute to approximately 55% of the market in terms of volumes. Another 20% of the market, by volume, is accounted for by other multinationals which are mostly integrated oil companies and the rest of the market is constituted by numerous smaller players, largely local in nature. There are over 30 established players in this industry, making it very competitive. The market for automotive applications, where The Company has established a well-entrenched position over the years, is the predominant one amongst the three sectors within the lubricant industry.

Demand drivers: India is an important market for the lubricant industry world-wide, contributing to over 5.5% of global automotive lubricants demand and over 4% of industrial lubricants demand.

Demand for automotive lubricants is driven largely by the dual forces of growth in vehicle population and the extent of use of these vehicles. ‘Automotive lubricants’ is a collective term to describe the vehicle-fluids requirements of two-wheelers, passenger cars and commercial vehicles.

The demand for lubricants in the Industrial sector is primarily driven by industrial production. The Index of Industrial Production (IIP) has been observed to have a strong correlation to consumption demand for industrial lubricants in India.

In case of Marine applications, global and local ship movements are the drivers of its demand. Large-scale global movement of goods happens predominantly by sea and demand for shipping services drives fleet utilization rates and freight rates for shipping companies, in turn driving consumption of marine lubricants. With Energy lubricants, the installed base of off-shore rigs along the coast-line of India and their up-time drive demand for such products.

Supply drivers: Lubricants are manufactured by blending base-oils and additives, with base-oil being the main component. India is a net base-oil deficit market and many additives used in lubricants are manufactured outside India. This necessitates large-scale imports of raw materials and thus also exposes lubricants businesses to fluctuations in foreign exchange rates. While the foreign exchange rates remain volatile, base oil prices dropped towards the end of 2014.

Major industry developments

The year 2014 was a challenging business environment due to the twin-effects of a slower GDP growth rate of around 5% and relatively high inflation rate prevailing through the year. In addition, the lubricant industry faced many other strong headwinds affecting demand and supply drivers alike, during the year.

Automotive sector

Vehicle sales grew by 9% in the year 2014 compared to the previous year. With respect to sales in the previous year, commercial vehicle sales declined by 12%, passenger car sales increased by a marginal 1%, while two-wheeler sales grew by 12%. In addition, the slowing down of the economic growth translated into weakening of goods movement across the country and also a slowing down of infrastructure projects. This had a direct impact on lubricant consumption in the commercial vehicles sector and other business-to-business automotive segments.

Other longer term macro-trends in the industry remained largely unchanged. The choice of lubricant and its specification plays a key role in enabling Original Equipment Manufacturers (OEMs) to comply with tightening regulations on tail-pipe emissions and to meet demands for lower cost of operations. This places onus on the lubricant industry to respond with products that are able to cope with the increasing sophistication of these modern vehicles. These improved products, typically synthetic lubricants, are also able to maintain their physio-chemical and performance properties for a longer period of usage than earlier generation lubricants, lengthening oil drain intervals.

This has an impact on structural demand in the industry. Lubricant volume consumption for the same rate of use decreases while per unit cost and price realization increases. Therefore, other drivers remaining unchanged, the growth in demand for lubricants is expected to lag vehicle population growth rate in the foreseeable future.

Two-wheelers: In the two-wheeler industry, gearless scooters seem to be finding favour with the consumer over the past few years. Scooter sales have grown by 29% in 2014, helping the industry overcome the relatively lower growth rates in motorcycles sales (6%). This has translated into an increase of 9% in twowheeler population in the country and a similar growth in demand for two-wheeler oils.

With an increasing number of two-wheelers being sold into the smaller towns and villages over the past decade, an estimated 50% of the two-wheeler population resides in rural India today.

Passenger cars: Passenger car sales reversed its declining trend in the year 2014 vis-à-vis the previous year with a marginal growth of 1%. The year witnessed an increase of 8% in passenger car population due to higher sales in last few years. This has, in turn, increased demand for car engine oils, which got slightly offset by the shift to higher quality, synthetic lubricants that provide longer drain intervals in these cars. In 2014, the overall category oil consumption increased by 8%.

Commercial vehicles: The medium and heavy commercial vehicle (M and HCV) population in India grew by circa 1%, while the micro-light commercial vehicles grew by 9% in the year 2014. Continuing weak transporter sentiment, due to higher interest rates and weaker freight rates, continued to adversely impact M and HCV usage in 2014. The Company estimates that this has resulted in a circa 2% decline in consumption of overall truck engine oils.

Tractors: Tractor sales have experienced 4% decline during the year 2014 over 2013. However, this comes post a rapid growth in tractor sales of 15% in 2013. Tractor population in India is estimated to have increased by 11% during the year over 2013.

Off-road applications: Off-road vehicle sales and utilization were negatively impacted by the slowing down of many material infrastructure-related projects and due to the bottlenecks in the mining sector during 2014.

Non-automotive sectors

Industrial lubricants

Industrial production, measured by the IIP, has shown only modest improvement during 2014. Most of the key industrial sectors faced challenges like high input costs, high interest rates, sustained high inflation and slower than expected local and global demand during the year.

As economic reforms gain momentum, India’s manufacturing sector performance is likely to return to growth phase during 2015. India’s growth is also likely to accelerate towards its high long-run potential with a major new national program ‘Make in India’, which is designed to facilitate investment, foster innovation and drive manufacturing in the country. To realize the full potential, progress on domestic reforms, roll out of national Goods and Services Tax (GST) and renewed focus on manufacturing sector can be transformational and significantly improve the competitiveness of Indian manufacturing firms.

Marine and Energy lubricants

Globally, the shipping industry is still passing through one of its worst phases in several decades. The Indian shipping industry has followed the global pattern to a large extent, where global trade had grown 12.6% during 2010 before slowing down to 3.2% in 2012 and about 3.1% in 2014 (as per the November 2014 forecast by WTO).

The ban on iron ore export from India and changes in taxation structure of coal exporting countries, coupled with high cost of funding and trade sanctions against certain countries, have exacerbated the problems of the Indian shipping business.

However, the new Central Government’s push to de-bottleneck infrastructure projects has improved prospects, with global trade growth estimate pegged at 4% in 2015.

Impact of foreign exchange, crude oil and raw material prices

The year 2014 posed many challenges, particularly during the first half, when we witnessed higher crude prices, forex and tight supply market. During this period, average crude price stayed at level of US$106 per barrel and forex at around INR 61 to US dollar.

The second half of the year saw a volatile business environment, with falling crude prices on one hand and rupee depreciation on the other. These market uncertainties continued to put pressure on raw material costs.

High crude prices in almost three quarters of 2014 kept upward pressure on prices of base oils, additives and chemicals during the year. This resulted in higher input cost across all commodity segments for the industry and the Company.

Increased business activity in the Asia Pacific region in first half of 2014 continued to exert upward pressure on base oil prices before taking a steep downward trend starting fourth quarter of 2014. These market factors created testing times for the Company through the year

Prices of polymers showed an upward trend during most part of 2014 with an average increase of 12% over exit 2013. As polymers form majority of packaging material used by the industry, this contributed to an increase in cost of goods throughout the year.

However, in a very volatile and challenging business environment, The Company continued generating value for its investors through strategic sourcing, value improvement initiatives, extensive focus on service and continuous monitoring of costs.

The Company worked determinedly on a cost effective purchase model and value-based inventory management, keeping a close watch on cash-costs and working capital.

(B) Market behaviour and outlook

GDP growth rate is believed to have bottomed out in 2014 and is expected to average slightly higher in 2015 than it was for 2014, at over 6.5%. The Consumer Inflation, though, is estimated to hover around 6% in 2015, negating to some extent the favourable impact of higher GDP growth in the year. Consumer sentiment is expected to be marked by higher levels of optimism than before given that they have a stable majority government helmed by a reform oriented, decisive leader.

Automotive sector

The outlook for the automotive sector in 2015 has been examined closely by The Company through the three broad dimensions of demand drivers, distribution channels and competitive activity.

1. Demand drivers

The key drivers of demand growth in each segment where The Company operates are explained below:

Two-wheelers: The two-wheeler population is expected to grow by 9% during 2015, despite its high base of 2014 and is expected to drive the demand for two wheeler lubricants. Rural segment will be leading the growth in motorcycle sales in India. A separate subcategory of scooter oils is expected to take off in coming years due to surge in demand for gearless scooters.

Passenger cars: Passenger car population is expected to grow by 8% in 2015 over the previous year while car sales are expected to be a key growth driver – likely to grow at 5% compared to the previous year. In spite of the strong trend of increasing oil drain intervals and use of higher quality lubricants, passenger car enengine oil industry is expected to grow by 8% in 2015.

Commercial vehicles: The demand for lubricants for old generation commercial vehicles is expected to decline more sharply than in 2014 due to continued low freight rates keeping fleet utilization levels unchanged from the previous year. At the same time, demand for lubricants in micro-light commercial vehicles (MLCVs) is expected to increase in 2015 on the back of a projected 8% increase in MLCV population. Overall, commercial vehicle population is expected to grow by 3% in 2015; however lubricants demand for this category is expected to be static due to continuing low utilization rates of vehicles and longer oil drain intervals.

Tractors: There is an estimated 11% increase expected in tractor population along with increased are under sowing for the Kharif crop and improved price realization. This will benefit the agriculture economy in 2015 and the demand for tractor oils is expected to grow. However, due to longer oil drain intervals, tractor oil consumption is expected to grow at 3% during the same period.

Off-road vehicles: The slowdown observed in the infrastructure sector is expected to continue, though moderated. This, together with key projects likely to be delayed during the year, will keep equipment utilization levels low.

2. Channels of distribution

Customers in urban India continue to move towards ‘syntheticisation’ or premiumisation, of lubricants, driven mostly by manufacturer specifications. Rural customers have also begun to make their presence felt with higher levels of consumption demand for the category.

The composition of dealer types within the retail channel continues to evolve as Government investment in the rural economy has seen a rapid rise in the disposable incomes of rural households leading to increasing economic activity for small towns and villages.

The Company has yet again pioneered the development of effective and efficient distribution networks to harness this opportunity. Over the last two years, innovations in the route-to-market have led to exponential growth in business from small towns and rural India. In urban markets, the Company’s focus has been on improving the customer service by providing increasing levels of reliable service and more relevant customer oriented loyalty programmes. The Company has, as in the past, stayed at the cutting edge of technology to service customers better – be it through usage of PDAs which enables its sales force to customize offers to dealers, or through the use of GPS technology to reach out to smaller dealers and workshops in urban India.

3. Competitive activity

The competitive situation remains largely unchanged with all major international lubricant players present in the market. Television remains the most popular medium for reaching out to consumers with brand messages across the automotive sector, with different players dominating different categories. The Company continues to be one of the leading brands in the retail automotive sector, followed by the public sector brands. However, the smaller players have been competing aggressively with lower prices and higher sales promotions to gain market share. In the urban retail automotive segment, against a background of strong competitive action, the Company has increased its market share by 120 basis points, spread out more or less evenly across all segments.

Non-automotive sector

Industrial lubricants

With economic reforms gaining momentum, India’s long term prospects for growth remain optimistic. ‘Make in India’ programme is also expected to drive the growth of manufacturing sector including some key industrial sectors like automotive, automotive components and machinery manufacturing.

Likely correction in interest rates is also expected to improve the consumer sentiment and push up demand for goods and services. Lower fuel prices and lower interest rates, in particular, are expected to drive the demand for cars and two-wheelers and hence automotive manufacturing, in 2015.

Marine and Energy lubricants

The marine industry continues to operate in a very challenging environment. During 2014, many Indian shipping and ship management companies increased scrapping and sale of vessels, with several going bankrupt. This, and the lower utilization rates of fleets, higher lay-ups and the adoption of slow steaming, has led to a drop in the volumes of marine business. Estimates put the date of recovery in the marine industry at around 2016-17, when the demand and supply balance of vessels and cargo will balance out, pushing up the currently low charter rates.

The Energy lubricants sub-sector witnessed significant turmoil during the year 2014 as policy changes were in discussion between the Oil & Gas Ministry and other stakeholders, which continued to withhold future investments that can fuel further activities in exploration and drilling.

(D) Performance of segments and categories

I. Automotive lubricants

Overview

The Company continued to deliver a strong performance across the truck, passenger car and two-wheeler oil categories in the year 2014, driven by performance of its Power Brands – Castrol Activ, Castrol Power1, Castrol GTX, Castrol MAGNATEC, Castrol EDGE and Castrol CRB Turbo. The Castrol brand continued to pioneer and drive the syntheticisation of the category in response to the demands from vehicle manufacturers (OEMs) for better performing and environment-friendly products, while also selectively making a play in the mid-price segment in certain categories. The Company continued its close association with its OEM partners, especially Maruti Suzuki, the Volkswagen group and Tata Motors.

The Company also further deepened relations with key retail channel partners through the highly successful Anmol Ratn programme during the course of the year 2014. Castrol Engine Experts Club, launched last year, has been extremely successful in endearing brand Castrol further to mechanics, who are key influencers in the choice of oil and who are the primary handlers of lubricants in many categories.

There were also, however, significant challenges that the Company encountered in the Heavy Duty category, which caters to large fleets, mining, and building and construction equipment applications. This is due to the twin effects of lowered economic activity in this category and rising input costs for the industry.

Personal Mobility

Two-wheeler oils: The two-wheeler oils segment comprises engine oils for four-stroke and two-stroke engines that power motorcycles and scooters. Oils for four-stroke motorcycle engines dominate the category currently, while the gearless scooter segment is witnessing a re-emergence. Castrol operates in this space through three principal product brands- Castrol Activ, Castrol Power1 and Castrol Go!. Castrol Bike Points are exclusive stock-and-sell independent two wheeler workshops and are a key driver of growth for the Company in this category.

Safety being a key value of the Company, Castrol partnered with Bangalore Traffic Police and Ogilvy Bangalore, on project ‘Good Road’ to spread the message of using helmets whilst riding. This was done in an innovative and highly effective manner through technology innovation (bike would not start unless the helmet is worn). Through 360 degree on line and on-ground activation, the Company has reached more than one million consumers with this message and over 163,000 motorcyclists have pledged on www.thegoodroad.in to wear a helmet, making it a good road for millions. This initiative of the Company was recognised by various external bodies nationally as well as internationally, leading to the Company winning Black Elephant at Kyoorius advertising awards 2014 (the award is the highest category at the Kyoorius Advertising and Digital Awards and awarded to ‘ground breaking work that redefined the category’) and Gold for Innovation at SPIKES ASIA 2014 held in Singapore. You too can join the movement

The two-wheeler segment was the key growth driver of the Company’s performance in 2014 and delivered strong volume and value growth. This reflected in significant market share gain of 300 basis points, indicating superior performance versus category. Castrol two-wheeler brands also built higher engagement with consumers, reflecting in superior Brand Health vis-àvis key competition. This was driven by various exciting high impact initiatives like clutter breaking television campaign, launch of new packaging, increasing digital presence and leveraging sponsorship assets like the Company’s association with the International Cricket Council (ICC) and the global association with FIFA. All the initiatives have been activated through strong onground and digital activations and by building advocacy amongst Engine Experts through loyalty programme. The Company has also pioneered in conducting Asia’s first Lightbox Hangout in partnership with Google.

Castrol Activ, the largest brand in volume terms for the Company and market leader in the two-wheeler oil segment, grew ahead of category. Higher growth was achieved on the back of leading category creation for scooter engine oils by launching Castrol Activ Scooter during the early part of year and driving it aggressively through a high impact media campaign, leveraging Castrol’s global FIFA sponsorship. This was done by engaging with youth on digital across social\ media platforms. The efforts also included expanding presence in rural markets, acquiring new Castrol Bike Points and building higher engagement with dealers and Engine Experts. The innovative Castrol Activ Scooter Zip Factor Digital Campaign won a Bronze at the coveted Effie Awards. This campaign was run during the ICC T20 World Cup.

Castrol Power1 continued to engage with one of the largest on line communities for bikers – Castrol Biking, on Facebook, and kept its over one million users engaged through exciting content. Launch of Castrol Power1 biking app received encouraging response and has been downloaded by 30,000+ bikers. The app was also recognised by industry experts and the Company won a Silver award for the same at the Mobile Marketing Association’s ‘Smarties India’ and Bronze award at Socialathon for ‘Best use of social media on mobile’ category.

Castrol Go!, the Company’s foray in the mid-price segment, has received tremendous success in market and has surpassed volume delivery expectations.

Led by acquisition of new Castrol Bike Points, this exclusive Castrol channel delivered double digit growth during 2014.

Passenger Car Oils in the After-Market (PCO Retail): PCO Retail comprises engine oils for cars and utility vehicles and brake-fluids. It caters to the market with principally three product brands – Castrol GTX, Castrol MAGNATEC and Castrol EDGE. Passenger car oils sell through two major channels in the after-market – retail channel and the stock-and-sell independent workshops.

Despite 2014 being a challenging year for the automotive industry, the PCO Retail business experienced a volume growth over the previous year.The Company also achieved significant progress on the syntheticisation agenda in the category, with strong growth in both Castrol MAGNATEC and Castrol EDGE. The year was also significant for the successful launch of Castrol MAGNATEC Stop-Start which was underpinned by a strong consumer insight especially relevant to urban driving conditions. In addition, two exciting programmes enabled these growth stories:

1. Winning in big cities: With less than 2% of the Indian population owning cars, there is a very high concentration of cars, in the key metros. The Company’s targeted approach to win in these big cities through a 360° micro-marketing initiative has enabled focused investment in markets with highest potential. The PCO Retail business is now growing at twice the national growth rate in these markets.

2. Winning with mechanics: The Company has a customised training-on-wheels programme in key cities to spread awareness about the special requirements of modern engines and to explain why the new generation Castrol MAGNATEC, is the right solution for these sophisticated machines. The 12 training units that were operational across the key cities were well-appreciated by the mechanic community. The programme was recognized with the prestigious 2014 PMAA (Promotion Marketing Awards of Asia) Dragons of Asia award. Continued focus in this domain has also helped significantly increase the ‘Advocacy’ score among mechanics.

Passenger Car Oils in OEM Franchised Workshops (PCO FW): The PCO FW segment consists of engine oils and drive-line oils. OEM approvals and strong grassroots relationships with Franchise Workshops of OEMs are the business drivers for this segment. Since the year 2011, the Company has embarked on a journey to cater to this specialised channel through a dedicated range of products called the Castrol Professional series. Through a combination of variants – Castrol MAGNATEC Professional, Castrol GTX Professional and Castrol EDGE Professional, the Company caters to the engine oil requirement of franchise workshops of Maruti Suzuki, Ford, the Volkswagen group, Jaguar-Land Rover, Tata Motor and other OEMs.

The Company’s volumes in the PCO FW channel grew by circa 3% during 2014. This growth was driven by a few key enablers, described below:

Castrol Champions League: This is a dedicated Service Advisor advocacy programme run across key Maruti Suzuki Franchised Workshops. The Company reaches out to end consumers through these Service Advisors who interact directly with car owners and are able to explain the benefits of the Castrol Professional\ range to them.

Growth in Maruti Suzuki Franchised Workshops: Through a combination of key account acquisitions and gaining share in existing accounts, The Company delivered a significant volume growth in the Maruti Suzuki network. The Castrol Champions League was a key enabler in delivering this outcome. The year 2014 was also a landmark year for The Company’s partnership with Maruti Suzuki on account of the inauguration of the Liquid Engineering Centre at Maruti Suzuki Gurgaon plant. This state-of-the-art lubricant training centre enables Maruti Suzuki staff and employees to learn about the latest lubricant technology in an interesting and exciting manner whilst\ showcasing The Company’s pioneering technology.

Growth in European OEM segment: Through exclusive tie-ups and aggressive account retention programmes, The Company tapped into the rapid growth in population of European cars in the country and delivered more than 20% growth in volumes in this segment during the year.

Commercial Vehicle Oils (CVO)

Commercial vehicle oils category comprises lubricant applications for small and large trucks, farm equipment and specialised products for the Heavy Duty segment. In product terms, it comprises engine oils for new and old generation commercial vehicles, hydraulic oils and the ‘Specialty Products’ range. ‘Specialty products’ is an umbrella term representing essential vehicle fluids other than engine oils; such as drive-line oils, greases and coolants. Castrol CRB is the oldest and best known brand in this segment, participating in the agri-sector and old-generation MHCVs with Castrol CRB Plus and in the new generation commercial vehicles segment with Castrol CRB Turbo. Castrol RX Super leads the play for the Company in the mid-price segment in truck applications.

In 2014, we continued to face a challenging market environment resulting in moderate market growth of lubricants in this segment. While overall performance was impacted by the unfavourable economic conditions, mentioned below are some of the highlights of the business during the period under review:

a. The Company broad-based its participation in the mid-tier price segment in trucks with the Castrol RX Super brand and in tractors with the Castrol CRB Prima brand.

2. The Company launched Castrol CRB Mini-Truck, a product specially designed for Micro LCV segment. Micro LCVs operate in city traffic and go through multiple loads that result in the engines running hotter. Castrol CRB Mini-Truck has ‘Heat Shield Boosters’ which deliver three times better heat protection.

II. Non-automotive lubricants

Industrial lubricants

The year 2014 was a very successful year for Castrol’s Industrial business. The Company consolidated its position as the leading supplier of metal-working fluids and high performance lubricants, products which are technologically superior and deliver substantial value to the customers. The Company also successfully introduced new generation metal-working fluids and differentiated corrosion preventives during the year.

The Company’s Industrial segment delivered strong volume and margin growth of 8% in 2014 despite a stagnant manufacturing environment. This volume growth was achieved by winning new customers and increasing market share in key industrial segments. Profitability was maintained despite significant increase in raw material costs and the business was able to successfully recover this from the market through price increases and trading up customers to advanced products with higher benefits.

Marine and Energy lubricants

The Company continues to focus on customer intimacy and provides products and services that are bestin-\ class in this segment. Introduction of environment friendly biodegradable lubricants for stern tube and value added services like fleet optimiser and SDA (Scavenge drain analysis) were embraced by Marine customers. The Company will continue to focus its efforts to bring in better efficiency in its operations and concentrate on value driven and profitable customers to maintain its value and thought leadership position in the Marine segment.

The Company has maintained its leadership position in the offshore drilling segment during the year, by focusing its efforts on value offers despite minimal drilling activity by a leading player in the segment. Introduction of environment friendly biodegradable lubricants to offshore drilling sector was welcomed by the major drillers in the country. As drilling moves into deeper seas, the Company will maintain its focus on value and specialist offers such as sub-sea solutions, to further consolidate its market share in the offshore drilling segment.

Discussion on financial performance with respect to operational performance

The Company delivered a strong Gross Profit growth of 5% in 2014 over 2013, due to underlying improvement in unit sales realisation by circa 7%, although volumes declined in the last quarter due to weakening of demand in the OEM and retail channels.

Cost of sales continued to increase during 2014 by 8% over the previous year primarily due to weakening of the Rupee against US Dollar. The Company held its Unit Margin due to its focus on delivery in selected segments and sale of premium product mix.

Operating and other expenses increased by Rs. 400.000 Million as compared to 2013 due to investment in safety, people, brands, investment in Enterprise Resource Planning (ERP) and business growth opportunities.

The Profit After Tax (PAT) has decreased by Rs. 340.000 Million and is at Rs. 4746.000 Million compared to 2013 mainly due to reduction in other income from sale of non-operating Plant and absence of divestment profit.

With the current drop in crude oil prices, the input costs for 2015 are expected to be lower than 2014. However, the Indian Rupee is yet to show signs of stabilising against US Dollar. While there is an overall optimism in the economy, the industrial and economic growth has been slow compared to the expectations generated post the General Elections in May 2014. This may continue to put pressure on the Company’s margins.

The Management is confident that the Company, with its strong brands, enduring relationships with key stakeholders and commitment of its staff, will continue to sustain its strong performance during the year 2015.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90165146	09/08/1995	15,000,000.00	CANARA BANK	FORT, BOMBAY, Maharashtra - 400001, INDIA	-
2	90167064	30/05/1995	12,000,000.00	HONKONG BANK PVT LTD	52/60 MAHATMA GANDHI ROAD P O BOX 128, BOMBAY, Maharashtra - 400023, INDIA	-
3	90165080	09/09/1994	40,000,000.00	CANARA BANK	WARDEN HOUSE FORT, BOMBAY, Maharashtra - 400001, INDIA	-
4	90166289	05/07/1995 *	3,300,000.00	CANARA BANK	FORT MAIN BRANCH, BOMBAY, Maharashtra - 400001, INDIA	-
5	90166274	14/03/1994	3,300,000.00	CANARA BANK	FORT MAIN BRANCH, BOMBAY, Maharashtra - 400001, INDIA	-
6	90167010	20/04/1989	96,156,900.00	BANK OF INDIA	70-80 M G ROAD FORT, BOMBAY, Maharashtra - 400023,  INDIA	-
7	90165955	21/09/1987	2,500,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION	52/60 MAHATMA GANDHI ROAD, BOMBAY, Maharashtra - 400001, INDIA	-
8	90165942	04/06/1987	20,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION	52/60 MAHATMA GANDHI ROAD, BOMBAY, Maharashtra - 400001, INDIA	-
9	90165916	25/09/1986	10,000,000.00	CITI BANK	293 DR DN ROAD, BOMBAY, Maharashtra - 400001, INDIA	-
10	90165884	21/02/2002 *	52,500,000.00	THE HONKONG AND SHANGHAI BANKING CORPORATION LTD	52/60 MATAMA GANDHI ROAD, BOMBAY, Maharashtra - 400001, INDIA	-

UNAUDITED FINANCIAL RESULTS FOR THE HALF YEAR ENDED JUNE 30, 2015.

(Rs. In Million)

Particular	Half Year ended
	30.06.2015
	(Unaudited)
Income from operations
Sales/Income from Operations	19765.000
Less: Excise duty	2605.000
Net Sales/Income from Operations	17160.000
Other operating income	68.000
Total Income	17228.000
Expenditure
Changes in inventories of stock in trade	(91.000)
Cost of materials consumed	7553.000
Purchase of stock in trade	1001.000
Employee benefits expenses	867.000
Depreciation and amortization expenses	205.000
Other expenses
-Advertisement and Sales Promotion	1363.000
-Carriage, Insurance and Freight	531.000
-Other Expenditure	1335.000
Total Expenses	12764.000
Profit/ (Loss) from Operations before Other Income, Finance Charges	4464.000
Other Income	587.000
Profit/ (Loss) from ordinary activities before finance Charges	5051.000
Finance Charges	5.000
Profit/ (Loss) from ordinary activities before tax	5046.000
Tax Expense	1734.000
Profit/ (Loss) from ordinary activities after tax (9-10)	3312.000
Paid-up Equity Share Capital (Face Value per share Re.10)	2473.000
Earnings Per Share – (Before Extraordinary Items)
Basic and Diluted	6.70
PARTICULARS OF SHAREHOLDING
Public Shareholding
-Number of Shares	143269476
- Percentage of Shareholding	28.97%
Promoters and Promoter Group Shareholding
a) Pledged/Encumbered
- Number of Shares	Nil
- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	N.A.
- Percentage of Shares (as a % of the Total Share Capital of the Company)	N.A.
b) Non Encumbered
- Number of Shares	351291716
- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100.00%
- Percentage of Shares (as a % of the Total Share Capital of the Company)	71.03%

SEGMENT-WISE REVENUE, RESULT AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT

(Rs. In Million)

Sr. No.	Particular	Half Year ended
		30.06.2015
		(Unaudited)
1.	Segment Revenue (Net Sales / Income from Operations)
	Automotive	15313.000
	Non Automotive	1915.000
	Total	17228.000
2.	Segment Result
	Automotive	4418.000
	Non Automotive	429.000
	Total	4847.000
	Un-allocable income net of Unallocated (Expenditure)	204.000
	Finance Charges	5.000
	Profit from ordinary activities before tax (Including Exceptional items)	5046.000
3.	Segment Capital Employed
	Automotive	1446.000
	Non Automotive	946.000
	Add: Unallocable Assets less liabilities	3500.000
	Total capital employed	5892.000

Particulars	Quarter Ended 31.06.2015
Pending at the beginning of the quarter	Nil
Received during the quarter	8
Disposed of during the quarter	3
Remaining unresolved at the end of the quarter	5

Notes:

1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on July 29, 2015.

2. The above results have been subjected to "Limited Review" by the Statutory Auditors of the Company.

3. Tax Expenses include Current Tax and Deferred Tax.

4. The Board of Directors of the Company has at its meeting held on July 29, 2015 declared an Interim Dividend of Rs. 4.00 per share for the year ending December 31, 2015 (2014: Interim Dividend Rs. 3.50 per share) payable to those shareholders whose names appear on the Register of Members at the close of business hours on August 5, 2015 (Record date). The said Interim Dividend would be paid on August 20, 2015.

SOURCES OF FUNDS	As at 30.06.2015 (Unaudited)
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2473.000
(b) Reserves & Surplus	3419.000
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	5982.000
(3) Non-Current Liabilities
(a) long-term borrowings	0.000
(b) Deferred tax liabilities (Net)	0.000
(c) Trade Payables	0.000
(d) Other long term liabilities	77.000
(e) long-term provisions	26.000
Total Non-current Liabilities (3)	103.000
(4) Current Liabilities
(a) Short term borrowings	0.000
(b) Trade payables	5522.000
(c) Other current liabilities	1387.000
(d) Short-term provisions	3701.000
Total Current Liabilities (4)	10610.000
TOTAL	16605.000
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1744.000
(ii) Intangible Assets	0.000
(iii) Capital work-in-progress	0.000
(iv) Intangible assets under development	0.000
(b) Non-current Investments	0.000
(c) Deferred tax assets (net)	664.000
(d) Long-term Loan and Advances	832.000
(e) Other Non-current assets	0.000
Total Non-Current Assets	3240.000
(2) Current assets
(a) Current investments	0.000
(b) Inventories	3554.000
(c) Trade receivables	2854.000
(d) Cash and cash equivalents	5880.000
(e) Short-term loans and advances	1037.000
(f) Other current assets	40.000
Total Current Assets	13365.000
TOTAL	16605.000

CONTINGENT LIABILITIES:

(Rs. in million)

PARTICULARS	31.12.2014	31.12.2013
Excise/sales tax/service tax demands made by the authorities, in respect of which appeals have been filed	276.800	167.700
Claims against the Company not acknowledged as debts estimated at:
In respect of third parties – miscellaneous	11.600	9.800

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.65.12
UK Pound	1	Rs.101.61
Euro	1	Rs.72.55

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	RSM
Report Prepared by :	SUJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILITY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		65

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.