MIRA INFORM REPORT

Report No. :	350691
Report Date :	23.11.2015

IDENTIFICATION DETAILS

Name :	GP PETROLEUMS LIMITED
Registered Office :	804, 8^th Floor, Achruti Star, MIDC Central Road, MIDC, Andheri (East), Mumbai – 400093, Maharashtra
Tel. No.:	91-22-56301911
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	06.07.1983
Com. Reg. No.:	1-030372
Capital Investment / Paid-up Capital :	Rs.254.922 Million
CIN No.: [Company Identification No.]	L23201MH1983PLC030372
IEC No.:	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in designing, manufacturing and marketing of industrial and automotive lubricants, process oils, transformer oils, greases and other specialties.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

A (64)

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 :	Clear
Comments :	Subject is a subsidiary of Gulf Petrochem Pte Limited. It is engaged in the business of trading, bunkering storage, refining of oil and manufacturing grease. For the financial year ended 2015, the company has healthy scale of operations marked by decent increase in its sales turnover along with profitability margin of 12.3%. Rating takes into consideration the company’s strong financial position, adequate net worth base along with favourable gap between trade payables and receivables. The company has an established marked position backed by the financial and product support that it receives from its parent company. Trade relations are fair. Business is active. Payments are regular and as per commitment. In view of aforesaid, the company can be considered 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	CRISIL
Rating	Long Term Rating = A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	July 2015

Rating Agency Name	CRISIL
Rating	Short Term Rating = A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	July 2015

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 31-03-2015.

INFORMATION DECLINED

Management Non-Cooperative (Tel No.; 91-22-66301911)

LOCATIONS

Registered Office :	804, 8^th Floor, Achruti Star, MIDC Central Road, MIDC, Andheri (East), Mumbai – 400093, Maharashtra, India
Tel. No.:	91-22-56301911 / 22873097
Fax No.:	91-22-22875751
E-Mail :	ipol@gulfpetrochem.com
Website :	www.ipollubes.com
Plant Locations 1 :	Plot No. 5 to 14, Behind Dewan and Shah Industrial Estate, Village: Valiv, Vasai (East), Dist: Thane, Maharashtra, India
Plant Locations 2 :	Survey No. 97 / 2, Daman Industrial Estate, Kadaiya, Daman Pataliya Road, Nani Daman – 396 210

DIRECTORS

As on 31.03.2015

Name :	Mr. Brij Mohan Bansal
Designation :	Director
Address :	837, Asiad Village, New Delhi - 110049, India
Date of Appointment :	14.08.2014
DIN No.:	00261063
Name :	Mr. Bhaswar Mukherjee
Designation :	Director
Address :	F-1/2, Sector 7, Vashi, Navi Mumbai - 400703, Maharashtra, India
Date of Appointment :	12.02.2015
DIN No.:	01654539
Name :	Mr. Ayush Goel
Designation :	Director
Address :	Reshm Aavaas, 105, Akashneem Marg, DLF City, Phase 2, Gurgaon - 122001, Haryana, India
Date of Appointment :	31.07.2014
DIN No.:	02889080
Name :	Mr. Thangapandian Srinivasalu
Designation :	Director
Address :	Flat No. C-903, Lake Castle, Hiranandani Gardens, Powai, Mumbai - 400076, Maharashtra, India
Date of Appointment :	31.07.2014
DIN No.:	03376410
Name :	Ms. Pallavi Goel
Designation :	Director
Address :	Reshm Aavaas, 105, Akashneem Marg, DLF City, Phase 2, - Gurgaon - 122001, Haryana, India
Date of Appointment :	12.02.2015
DIN No.:	03579576
Name :	Mr. Ramji Sinha
Designation :	Director
Address :	B-202, Pocket P2 Greenwood, Govt. Officers Society, Ph-1, Gautam Budh Nagar, Greater Noida - 201308, Uttar Pradesh, India
Date of Appointment :	28.05.2015
DIN No.:	06500943
Name :	Mr. Narotamkumar Girdharilal Puri
Designation :	Director
Address :	B 503, Shagun Tower, Gen A K Vidya Marg, Dindoshi Depot, Goregaon East, Mumbai - 400063, Maharashtra, India
Date of Appointment :	14.08.2014
DIN No.:	06948464
Name :	Mr. Jagat Singh
Designation :	Director
Address :	104B, Sunder Apartment, New Delhi - 110087, India
Date of Appointment :	28.05.2015
DIN No.:	07178388
Name :	Mr. Pradip C. Shah
Designation :	Independent, Non-Executive Director
Name :	Mr. Ramesh Chander Razdan
Designation :	Independent, Non-Executive Director

KEY EXECUTIVES

Name :	Mr. Murli K Krishnamoorthy
Designation :	Chief Executive Officer
Address :	Flat SB, Jain Advika, 55, Third Main Road, Gandhi Nagar, Adyar, Chennai - 600020, Tamil Nadu, India
Date of Appointment :	14.04.2015
PAN No.:	AAFPM6878D
Name :	Mr. Malla Reddy Dargabavi Reddy
Designation :	Secretary
Address :	Building No. 17-E/Flat 302, Kailash Nagar, Vadawli Section, Ambernath - 421501, Maharashtra, India
Date of Appointment :	05.04.2004
PAN No.:	AAHPD7475M
Name :	Mr. Jagdish Govind Nagwekar
Designation :	Chief Finance Officer
Address :	D-104, Amrat Society, J. S. Road,, Dahisar (West), Mumbai - 400068, Maharashtra, India
Date of Appointment :	05.08.1015
PAN No.:	AAZPN1522F

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2015

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
		As a % of (A+B)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	9529260	18.69
Sub Total	9529260	18.69
(2) Foreign
Bodies Corporate	27300000	53.55
Sub Total	27300000	53.55
Total shareholding of Promoter and Promoter Group (A)	36829260	72.24
(B) Public Shareholding
(1) Institutions
Foreign Institutional Investors	204742	0.40
Sub Total	204742	0.40
(2) Non-Institutions
Bodies Corporate	1310896	2.57
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	6785597	13.31
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	5007813	9.82
Any Others (Specify)	846075	1.66
Clearing Members	189762	0.37
Non Resident Indians	656313	1.29
Sub Total	13950381	27.36
Total Public shareholding (B)	14155123	27.76
Total (A)+(B)	50984383	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)	50984383	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

o.	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	Gulf Petrochem Energy Private Limited	95,29,260	18.69	18.69
2	Gulf Petrochem Pte Limited	2,73,00,000	53.55	53.55
	Total	3,68,29,260	72.24	72.24

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	Vikram Pratapbhai Kotak	630000	1.24	1.24
	Total	630000	1.24	1.24

BUSINESS DETAILS

Line of Business :	Subject is engaged in designing, manufacturing and marketing of industrial and automotive lubricants, process oils, transformer oils, greases and other specialties.
Products :	Automotive Lubricants Process Oils Transformer Oils Greases and Other Specialties
Brand Names :	“IPOL®TM”
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 :

Bank Name	Axis Bank Limited
Branch	Nariman Point, Mumbai - 400 021, Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

• Dena Bank, Sachivalaya Corner, Mumbai - 400 021, Maharashtra, India
• IDBI Bank, Mumbai, Maharashtra, India

Facilities :

Secured Loan	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Term Loan From Yes Bank	109.376	0.000
Short-term borrowings
Working Capital Loans From Banks	0.000	0.000
Current Portion of Term Loan	3.538	0.000
Total	112.914	0.000
Note LONG-TERM BORROWINGS Nature of security Term loan from bank is secured by mortgage of office premises at Andheri (Mumbai) Terms of Repayment Repayable in 180 Equated monthly installments of Rs. 1.279 (Including Interest) starting from 15-04-2015 Last EMI due on 15-04-2030 SHORT-TERM BORROWINGS Nature of Security: A. Working Capital Loans from Banks are secured by pari pasu charge by way of: i) Hypothecation of: a) Entire current assets of the company both present and future in favour of the Company’s Bankers for Working Capital facilities; b) Entire movable and immovable fixed assets of the company both present and future in favour of the Company’s Bankers for Working Capital facilities; ii) Equitable Mortgage on Land together with Factory Premises of the Company at Plot No. 5 to 14, Village Valiv, Taluka Vasai, District Thane. iii) Equitable Mortgage on office premises at 406/407 and 612 Embassy Centre, Nariman Point, Mumbai - 400021. B. The charges created as per Para (A) above also extends to the guarantees given by the banks on behalf of the company, aggregating Rs. 5.715 Million (31st March, 2014 – Rs. 5.593 Million

Auditors :
Name :	PNG and Company Chartered Accountants
Address :	1207, New Delhi House, 27, Barakhamba Road, New Delhi-110001, India
Memberships :	Not Available
Collaborators :	Not Available
Holding Company :	Gulf Petrochem Pte Limited
Other Related party :	NAF India Holdings Limited, (Investor Company upto July 31, 2014)
Fellow Subsidiary :	Gulf Petrochem (India) Private Limited Gulf Petrochem Energy Private Limited New Horizons Realbuild Private Limited New Horizons Logiware Private Limited Olive Roots India Private Limited Gulf Ispat Limited
Ultimate Holding Company :	Gulf Petrochem FZC
Ultimate Holding Company and Director of Reporting company exercising more than 20% control :	Gulf Asphalt Private Limited ( Formerly known as Aspam Petronergy Private Limited.)

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
52000000	Equity Shares	Rs.5/- each	Rs.260.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50984383	Equity Shares	Rs.5/- each	Rs.254.922 Million

Reconciliation of number of shares

Particulars	No. of Shares
Shares outstanding at the beginning of the year	50984383
Shares issued during the year	--
Shares outstanding at the end of the year	50984383

Rights, Preferences and restrictions attached to Equity Shares

The company has only one class of equity shares having a Par Value of Rs. 5 per share. Each shareholder is eligible for one vote per share

The details of Shareholders holding more than 5% shares:

Particulars	No. of Shares
NAF India Holdings Limited	--
% Age Held	--
Shobha Sah,	--
% Age Held	--
Rajendra Sah,	--
% Age Held	9,529,260
Gulf Petrochem Energy Private Limited	18.691%
% Age Held
Gulf Petrochem Pte Ltd	27,300,000
% Age Held	53.546%

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	254.922	254.922	220.000
(b) Reserves & Surplus	1041.077	1001.466	1027.626
(c) Less : Revaluation Reserves	(28.901)	(29.917)	(30.902)
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1267.098	1226.471	1216.724
(3) Non-Current Liabilities
(a) long-term borrowings	109.377	0.000	0.000
(b) Deferred tax liabilities (Net)	11.870	5.216	2.690
(c) Other long term liabilities	4.735	2.335	5.385
(d) long-term provisions	4.355	3.553	5.060
Total Non-current Liabilities (3)	130.337	11.104	13.135
(4) Current Liabilities
(a) Short term borrowings	3.538	0.000	0.000
(b) Trade payables	778.033	1670.084	1614.620
(c) Other current liabilities	95.218	150.798	127.530
(d) Short-term provisions	7.293	2.105	1.036
Total Current Liabilities (4)	884.082	1822.987	1743.186
TOTAL	2281.517	3060.562	2973.045
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	383.341	272.594	297.531
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(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)	0.000	0.000	0.000
(d) Long-term Loan and Advances	28.396	66.149	82.274
(e) Other Non-current assets	46.795	29.266	49.108
Total Non-Current Assets	458.532	368.009	428.913
(2) Current assets
(a) Current investments	42.850	200.113	350.621
(b) Inventories	569.377	966.942	888.234
(c) Trade receivables	857.718	1125.112	926.281
(d) Cash and cash equivalents	216.275	252.806	243.666
(e) Short-term loans and advances	136.765	147.580	135.330
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1822.985	2692.553	2544.132
TOTAL	2281.517	3060.562	2973.045

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Revenue from Operations	4072.813	4035.869	4173.695
	Other Income	27.461	33.659	43.495
	TOTAL (A)	4100.274	4069.528	4217.190
Less	EXPENSES
	Cost of Materials Consumed	3256.496	3265.746	3380.813
	Purchases of Stock-in-Trade	0.000	4.170	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	56.214	22.147	(12.509)
	Employees benefits expense	175.907	162.588	161.777
	Other expenses	439.275	428.190	504.539
	TOTAL (B)	3927.892	3882.841	4034.620
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	172.382	186.687	182.570
Less	FINANCIAL EXPENSES (D)	96.301	140.612	181.194
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	76.081	46.075	1.376
Less/ Add	DEPRECIATION/ AMORTISATION (F)	30.735	19.783	21.962
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	45.346	26.292	(20.586)
Less	TAX (H)	(4.915)	15.867	(7.951)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	50.261	10.425	(12.635)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (K)	492.300	483.053	496.205
Less	APPROPRIATIONS
	Transfer to General Reserve	0.500	0.500	0.000
	Proposed Dividend	5.098	0.510	0.440
	Tax on Dividend	0.000	0.098	0.075
	Residual Dividends	0.001	0.070	0.002
	Total (M)	5.599	1.178	0.517
	Balance Carried to the B/S (J+K+L-M)	536.962	492.300	483.053
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	154.139	258.972	298.427
	TOTAL EARNINGS	154.139	258.972	298.427
	IMPORTS
	Raw Materials	1453.872	1978.575	2406.266
	Components and Stores parts	0.000	0.352	0.000
	TOTAL IMPORTS	1453.872	1978.927	2406.266
	Earnings / (Loss) Per Share (Rs.)	0.99	0.2	(0.25)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	(184.587)	(165.180)	(145.754)
Net cash flow from operating activity	(177.047)	(154.778)	(149.164)

QUARTERLY RESULTS

Particulars	June 2015	September 2015
Audited / Unaudited	Unaudited	Unaudited
Net Sales	865.950	817.400
Total Expenditure	774.200	756.960
PBIDT (Excl OI)	91.750	60.440
Other Income	4.420	3.080
Operating Profit	96.170	63.520
Interest	17.310	18.440
Exceptional Items	NA	NA
PBDT	78.860	45.080
Depreciation	7.690	7.450
Profit Before Tax	71.170	37.630
Tax	25.030	20.840
Provisions and contingencies	NA	NA
Profit After Tax	46.140	16.790
Extraordinary Items	NA	NA
Prior Period Expenses	NA	NA
Other Adjustments	NA	NA
Net Profit	46.140	16.790

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	1.23	0.26	(0.30)
Operating Profit Margin (PBIDT/Sales)	(%)	4.23	4.63	4.37
Return on Total Assets (PBT/Total Assets}	(%)	1.99	0.86	(0.69)
Return on Investment (ROI) (PBT/Networth)		0.04	0.02	(0.02)
Debt Equity Ratio (Total Debt /Networth)		0.09	0.00	0.00
Current Ratio (Current Asset/Current Liability)		2.06	1.48	1.46

STOCK PRICES

Face Value	Rs.5.00/-
Market Value	Rs.63.85/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	220.000	254.922	254.922
Reserves & Surplus	1027.626	1001.466	1041.077
Less : Revaluation Reserves	(30.902)	(29.917)	(28.901)
Net worth	1218.725	1226.471	1265.097
long-term borrowings	0.000	0.000	109.377
Short term borrowings	0.000	0.000	3.538
Total borrowings	0.000	0.000	112.915
Debt/Equity ratio	0.000	0.000	0.089

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	4173.695	4035.869	4072.813
		(3.302)	0.915

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	4173.695	4035.869	4072.813
Profit	(12.635)	10.425	50.261
	(0.30%)	0.26%	1.23%

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	Yes
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	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

BUSINESS RESULTS:

Net Sales/Income from operations for the year ended 31st March, 2015 amounted to Rs. 4072.814 Million against Rs. 4035.869 Million in the previous year. The profit for the year stood at Rs. 50.261 Million against the profit Rs. 10.425 Million in the previous year, registering a growth of 382%.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Structure & Development:

GP Petroleums Limited (GPPL) is one of the leading manufacturer of industrial lubricants in India and manufacturing wide range of industrial and automotive lubricants, specialties and process oils etc. under the brand name of “IPOL®TM” at Vasai and Daman plants. This industry has much growth potential and is growing globally.

Overview:

The financial statements have been prepared in compliance with the requirements of the Companies Act, 1956/2013 and made on a prudent and reasonable basis in order that the financial statements reflects a true and fair manner the form and substance of transactions and reasonably present our state of affairs and profit for the year.

The Company’s Net Sales/Income from operations for the year ended 31st March, 2015 amounted to Rs. 4072.814 Million against Rs. 4035.869 Million in the previous year. The profit for the year stood at Rs. 50.261 Million against the profit Rs. 10.425 Million in the previous year, registering a growth of 382%.

Considering the performance of the company, the Board of Directors recommended dividend Rs. 0.10 per share @ 2% on the equity shares of Rs. 5/- each for the financial year 2014-15.

Industry outlook:

The public sector undertakings have dominated the Indian lubes market upto 1993 and they had a collective market share of approximately 89%, but after 1993, the Government has liberalized and decentralized the norms of import of key raw material, determination of pricing regulations and reduction in the custom duties on import of base oil. Due to liberalization policy, the fair competition took place between the private players and public sector undertakings. In today’s position, around more than 20 companies are operating in the Indian lubricants market. Until the 1980, lubricants produced in the country were basically simple blends based on low and medium level technologies. More sophisticated lubricants were imported and these amounted for a very small market. The entry of multinationals has led to complex and premium brands being introduced into the Indian market. The Indian lubricants market is the fourth largest in the world.

Market Segments: There are two major segments of the lubricants industry. The automotive lubricants segment has an approximate market share of 65% and the industrial lubricants segment accounting for the rest.

Import Threat: Lubricants are usually made according to the nature of use, climatic conditions, type of road, nature of automobiles and so on. Therefore, it would not be logical to import the same in the country. But at the same time, there is not much difference and the same can be imported if one prefers to do so. In fact, premium products, even as on today, are imported. However, in the general outlook of things, import of lubricants in India would not be competitive due to the prevailing import duty structure as well as high freight costs.

In consideration of above, it could be safely noted that the key factors to success for any company in the Lubricant industry would be:

• Good brand image.
• An extensive marketing network.
• Strong financial resources.
• Technological innovations and R&D backup.
• Strategically located manufacturing facilities.

Marketing Strategy:

Company has been in the market for more than three decades under the brand name IPOL. The strategy is to cater to the specific need of the company by way of customising their products, offering the right price at right time. The Company has a marketing network setup all over India. IPOL brand is registered in the name of the Company. The company presently markets its products through its sales offices / depots located at Pune, Delhi, Faridabad, Chandigarh, Chennai, Bangalore, Hyderabad, Baroda, Kolkata, Jamshedpur, Jaipur, Indore, Mehsana, Jabalpur, Patiala, Ghaziabad and many Clearing and Forwarding Agents at different locations in India.

In addition to the direct marketing efforts, the company also appoints distributors/agents for both domestic and overseas markets.

Business Strategy:

The Company would continue to focus on the current segments of business considering the market potential, its own inherent strength in terms of its quality, price and timely delivery. The Company has requisite infrastructure and manufacturing facilities due to its constant up-gradation/modernization and phased expansion programme.

The Company is constantly introducing new products on account of its strong in-house R and D and will continue to do the same in the near future and will also direct efforts for increasing its presence in the export markets.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10578816	16/03/2015	112,500,000.00	YES BANK LIMITED	48, Nyaya Marg, Chanakyapuri, New Delhi-110021, New INDIA	C58373523
2	90184077	08/04/2015 *	1,780,000,000.00	Dena Bank	Sachivalaya Corner Branch, "The Beacon", Madam Cama Road, Sachivalaya Corner, Mumbai, Maharashtra - 400021, INDIA	C57487803
3	90188514	08/04/2015 *	1,780,000,000.00	Dena Bank	Sachivalaya Corner Branch, "The Beacon", Madam Cama Road, Sachivalaya Corner, Mumbai, Maharashtra - 400021, INDIA	C61080974

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30^th SEPTEMBER 2015

(Rs. In Million)

		Particulars	quarter ended 30.09.2015	quarter ended 30.06.2015	Half year ended 30.06.2015
1		Income from Operations
		Sales/Income from Operations (Gross)	815.919	865.384	1681.304
		b) Other Operating Income	1.480	0.566	2.046
	Total Income from Operations (Net)		817.399	865.951	1683.350
2	Expenses
	a)	Cost of Materials consumed	615.284	617.140	1232.424
	b)	Purchase of Stock-in-trade	-	--	--
	c)	Changes in inventories of finished goods, work-in-progress and stock-in-trade	(12.588)	7.052	(5.535)
	d)	Employee benefit expenses	46.475	45.788	92.263
	e)	Depreciation and amortization expense	7.450	7.690	15.140
	f)	Other expenses	107.785	104.219	212.003
	Total Expenses		764.407	781.888	1546.295
3		Profit /(Loss) from operations before other income, finance costs and exceptional items	52.992	84.063	137.055
4	Other Income		3.077	4.420	7.497
5	Profit /(Loss) from ordinary activities before finance costs and exceptional items		56.069	88.482	144.552
6	Finance Costs		18.443	17.311	35.754
7	Profit /(Loss) from ordinary activities after finance costs but before exceptional items		37.627	71.172	108.798
8	Exceptional Items		--	--	--
9	Profit /(Loss) from ordinary activities before tax		37.627	71.172	108.798
10	Tax Expense		20.836	25.034	45.870
11	Net Profit /(Loss) from ordinary activities after tax		16.790	46.137	62.928
12	Paid up equity share capital (Eq. shares of Rs.10/- each)		254.922	254.922	254.922
13	Reserve excluding revaluation reserves		-	-	-
14		Earnings per share (before/after extraordinary items) of Rs.10/- each
		Basic & Diluted	0.33	0.90	1.23
A		PARTICULARS OF SHAREHOLDING
1		Public Shareholding
		- No. of Shares	14155123	14155123	14155123
		- Percentage of Shareholding	27.76%	27.76%	27.76%
2		Promoters and promoter group shareholding
		a) Pledged/Encumbered
		- Number of shares	Nil	Nil	Nil
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	Nil	Nil	Nil
		- Percentage of shares (as a % of the total share capital of the Company)	Nil	Nil	Nil
		b) Non- encumbered
		- Number of shares	36829260	36829260	36829260
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	100.00%	100.00%	100.00%
		- Percentage of shares (as a % of the total share capital of the Company)	72.24%	72.24%	72.24%

Particulars	Quarter Ended 30.09.2015
Pending at the beginning of the quarter	Nil
Received during the quarter	Nil
Disposed of during the quarter	Nil
Remaining unresolved at the end of the quarter	Nil

CONTINGENT LIABILITIES:

(Rs. in million)

PARTICULARS	31.03.2015	31.03.2014
a] Claims against the Company not acknowledged as debts:
Sales Tax	39.961	72.176
Custom Duty	72.971	72.971
b] Guarantees given by Banks	5.715	5.593

FIXED ASSETS

• Buildings
• Land
• Furniture and Fixtures
• Plant and Equipment
• Office Equipments
• Vehicles
• Computer Systems

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.66.09
UK Pound	1	Rs.101.03
Euro	1	Rs.70.85

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	TRI
Report Prepared by :	SUJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION		7
--BUSINESS SCALE	1~10
--PROFITABILITY	1~10	8
--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		64

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.