MIRA INFORM REPORT

Report Date :

17.04.2008

IDENTIFICATION DETAILS

Name :	SAVITA CHEMICALS LIMITED
Registered Office :	66/67, Nariman Bhavan, Nariman Point, Mumbai – 400 021, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	19.07.1961
Com. Reg. No.:	11-12066
CIN No.: [Company Identification No.]	L24100MH1961PLC012066
TAN No.: [Tax Deduction & Collection Account No.]	MUMS37352A
PAN No.: [Permanent Account No.]	AAACS7934A
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing of Petroleum Specialty Products

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 8327268
Status :	Very Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company and doing well. Directors are reported as experienced, respectable and resourceful industrialists. Their trade relations are fair. Financial position is good. Payments are usually correct and as per commitments The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	66/67, Nariman Bhavan, Nariman Point, Mumbai – 400 021, Maharashtra, India.
Tel. No.:	91-22-2288 3061 / 22883062 / 22883063 / 22883064
Fax No.:	91-22-22029364
E-Mail :	1. savitacorp@vsnl.com 2. corporate@savita.com
Website :	http://www.savita.com
Factory :	· 17/17A, Thane Bei'apur Road, Turbhe, Navi Mumbai - 400 703, Maharashtra, India · Survey No. 10/2, Kharadpada, Post Naroli, Silvassa, Dadra and Nagar Haveli - 396 230, India · 54-A, Dhanudyog Industrial Estate, Piparia, Silvassa – 396230, India Tel. 91-260-2640756/2640696 Fax. 91-260-2640696
Lubricants Division :	Maker Chambers No.6, 7^th Floor, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-22027452/22850092
Fax No.:	91-22-22833968
Branches :	Located at :- Ø 1004, Akash Deep, 10^th Floor, Barakhamba Road, New Delhi – 110001, India o Tel. 91-11-23312447/23316577 o Fax. 91-11-23312447 Ø 209, Acharya Jagdish Chandra Bose Road, Karnani Estate, Flat No.144, 4^th Floor, Kolkata – 700 017, West Bengal, India o Tel. 91-33-22471872/22474956 o Fax. 91-33-22471872 Ø Plot No.7, P & T Colony, Trimulgherry Post, Hyderabad – 500 015, Andhra Pradesh, India o Tel. 91-40-27747880/27741246 Ø No.2A, 2^nd Floor, Block A-3, Mahalakshmi Apartments, Secretariat Colony, Adambakkam, Chennai – 600 088, Tamilnadu, India o Fax. 91-44-22583294

DIRECTORS

Name :	Mr. G. N. Mehra -
Designation :	Chairman and Managing Director
Qualification :	B.E.(Chem.), M.B.A.
Experience :	22 Years
Date of Appointment :	1.12.1983
Other Directorship :	Marketing Executive - Mehra Trading & Investment Company Private Limited
Name :	Mr. N. B. Karpe
Designation :	Director
Name :	Mrs. S. N. Mehra
Designation :	Director
Date of Birth/Age :	12.10.1936
Qualification :	B.A.
Experience :	Over 27 years in the industry
Other Directorship :	Ø Savita Polymers Limited Ø Savita Petro-Additives Limited. Ø Savita Finance Corporation Limited. Ø Khatri Investments Private. Limited. Ø Mansukhmal Investment Private. Limited. Ø Naved Investment & Trading Company Private. Limited. Ø Kurla Investment & Trading Company Private. Limited. Ø Basant Lok Trading Company Ø Chemi Pharmex Private. Limited
Name :	Mr. V. D. Narkar
Designation :	Director
Date of Birth/Age :	12.07.1941
Qualification :	B.Com., F.C.A.
Experience :	Over 30 years in the profession
Other Directorship :	Ø Merck Limited Ø Wyeth Limited Ø LKP Forex Limited Ø Savita Polymers Limited Ø Millennium Beer Industries Limited Ø Nishee Trading & Investments Private Limited Ø Nishee Agro Private Limited. Ø Worli Industrial Properties Limited Ø Narkar & Associates Private Limited Ø Yatish Trading Company Private Limited.
Name :	Mr. S. R. Pandit
Designation :	Director
Name :	Mr. C. V. Alexander
Designation :	Director
Date of Birth/Age :	29.5.1935
Qualification :	M.A., L.L.B
Experience :	Over 41 year in service
Other Directorship :	Kurla Investment And Trading Company Private Limited

KEY EXECUTIVES

Name :	Mr. A. C. Satsangi (Resigned from 20.10.2004)
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (as on 31.03.2007)	No. of Shares	Percentage of Holding
Overseas Corporate Bodies	---	---
Non resident Individuals
On non – repatriable basis	13014	0.0891%
On repatriable basis	46722	0.3200%
FIIs	285187	1.9531%
Promoters , Director	10013220	68.5739%
Banks / Mutual Funds / Public
Financial Institutions / Trusts
Other Bodies Corporate	1748675	11.9755%
Resident Individuals	2495265	17.0884%
Total	14602083	100.0000%

BUSINESS DETAILS

Line of Business :	Manufacturing of Petroleum Specialty Products
Products :	ITC Code No. Product Description 2710.95 Lubricanting Oils / Greases 2710.99 Transformer Oil 2710.99 Liquid Paraffins

PRODUCTION STATUS (as on 31.03.2007):-

Particulars	Unit	Licensed Capacity Per annum	Installed Capacity	Actual Production
Transformer Oil / Liquid Paraffin and White Oils/Lubricating Oils/ Greases and Other Specialties	KL/MT	256000	216000	172914
Petroleum Sulfonates/ Petroleum Sulfonates (Synthetic)	MT	4500	2600	----
Petroleum jellies	MT	3000	3000	22
Wind Power (Electricity)	MW	----	21.80	3.69

GENERAL INFORMATION

Suppliers :

· Standard Greases (Silvassa)

· Sunbird Seals and Plastics Private. Limited .

· Tarapur Grease Industries Private Limited .

· Basant Lok Trading Company .

· Gautam and Company .

· Madhu Trust

· Savita Petro-Additives Limited .

· Siddharth Investments

· Chemi Pharmex Private Limited .

· Khatri Investments Private Limited .

· Mansukhmal Investment Private Limited .

· Savita Finance Corporation Limited .

· Devichand and Company .

· Kurla Investment and Trading Company Private Limited .

· Naved Investment and Trading Company Private Limited .

· Savita Polymers Limited .

Bankers :

Ø State Bank of India

Ø Union Bank of India

Ø Corporation Bank

Ø Standard Chartered Bank

Facilities :

SECURED LOANS	31.03.2007 (in Millions)
From Banks
Cash Credits	118.736
Foreign Currency Loan (repayable within a year Rs. 88.108 millions, Previous Year Rs. Nil )	204.721
Term Loan (Repayable within a year Rs. 9.400 millions)	94.000
Secured by second charge on fixed assets (except fixed assets of Wind Power Segment) and hypothecation of inventories and receivables Secured by exclusive hypothecation on Wind Power Plants at i) Kanchiganhal, District Chitradurga, Karnataka ii) Gudhe Panchagani, District Sangli, Maharashtra and iii) Panchpatta, District Ahmednagar, Maharashtra (under construction) Secured by exclusive hypothecation on Wind Power Plants at Bhirenwadi, District Sangli, Maharashtra
UNSECURED LOANS	31.03.2007 (in millions)
Fixed Deposits	7.755
[Repayable within a year Rs.7.005 millions, (Previous Year Rs.3.450 millions) Due to directors Rs.4.325 millions, (Previous Year Rs.4.325 millions)]
Sales Tax Deferment Loan	156.195
Total	163.950

Banking Relations :

Good

Auditors :

Name 1 :

Bansal & Associates

Chartered Accountants

Address 1 :

Mumbai, Maharashtra, India

Name 2 :

G M Kapadia and Company

Chartered Accountants

Address 2 :

Mumbai , Maharashtra, India

Associates/Subsidiaries :

Solaris International FZE (Sharjah, UAE)

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10/- each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14602083	Equity Shares	Rs. 10/- each	Rs.146.021 millions
7100	Add: Forfeited Shares		Rs. 0.035 millions
		Total	Rs.146.056 millions

Of the above:

(i) 2500 (Previous Year 2500) Equity Shares were allotted as fully paid-up pursuant to a scheme of amalgamation without payment being received in cash

(ii) 11570833 (Previous Year 5730000) Equity Shares were allotted as fully paid-up Bonus Shares by capitalisation of Share Premium, Revaluation Reserve, General Reserve and Profits

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		146.056	87.648	87.648
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1935.761	1674.786	1427.392
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2081.817	1762.434	1515.040
LOAN FUNDS
1] Secured Loans		417.457	114.266	67.245
2] Unsecured Loans		163.950	150.917	135.213
TOTAL BORROWING		581.407	265.183	202.458
DEFERRED TAX LIABILITIES		168.515	113.828	85.099
DEFERRED SUBSIDY		0.000	0.242	0.492
TOTAL		2831.739	2141.687	1803.089
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		965.425	689.440	559.423
Capital work-in-progress		80.216	1.137	42.319
INVESTMENT		120.262	143.646	230.374
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1626.035	1677.296	952.447
	Sundry Debtors	1888.839	1546.589	1020.162
	Cash & Bank Balances	192.050	149.842	189.841
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	279.742	131.193	91.397
Total Current Assets		3986.666	3504.920	2253.847
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2273.956	2047.755	1156.597
	Provisions	46.874	149.701	126.277
Total Current Liabilities		2320.830	2197.456	1282.874
Net Current Assets		1665.836	1307.464	970.973
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2831.739	2141.687	1803.089

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		8128.791	6050.986	5644.097
Other Income		156.702	93.921	0.000
Total Income		8285.493	6144.907	5644.097
Profit/(Loss) Before Tax		604.733	514.389	415.516
Provision for Taxation		132.083	139.534	120.197
Profit/(Loss) After Tax		472.650	374.855	295.319
Export Value		1244.137	726.921	434.887
Import Value		4982.468	4171.260	2610.536
Expenditures :
	Raw Material Consumed	6753.166	4846.346
	Interest	15.166	9.202
	Personnel	99.417	89.598	5228.581
	Depreciation & Amortization	98.651	90.381
	Other Expenditure	714.360	594.991
Total Expenditure		7680.760	5630.518	5228.581

QUARTERLY RESULTS

PARTICULARS	30.06.2007	30.09.2007	31.12.2007
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	2182. 000	2133.000	2227.800
Other Income	20.00	22.100	20.900
Total Income	2203.000	2155.100	2248.700
Total Expenditure	1948.300	1960.000	2046.500
Operating Profit	255.000	195.100	202.200
Interest	8.000	7.000	13.200
Gross Profit	247.000	188.100	189.000
Depreciation	31.700	32.300	31.900
Tax	62.000	38.900	33.700
Reported PAT	149.100	116.500	121.100

KEY RATIOS

Year	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	0.22	0.14	0.14
Long Term Debt-Equity Ratio	0.18	0.13	0.11
Current Ratio	1.50	1.53	1.66
TURNOVER RATIOS
Fixed Assets	6.52	6.26	6.07
Inventory	5.48	5.18	6.13
Debtors	5.27	5.31	5.43
Interest Cover Ratio	36.06	56.91	73.89
Operating Profit Margin(%)	7.14	9.02	9.02
Profit Before Interest And Tax Margin(%)	6.05	7.69	7.74
Cash Profit Margin(%)	5.70	6.83	6.71
Adjusted Net Profit Margin(%)	4.61	5.51	5.43
Return On Capital Employed(%)	23.41	28.05	26.28
Return On Net Worth(%)	21.78	22.96	20.94

LOCAL AGENCY FURTHER INFORMATION

History

Subject was promoted by Mr. N. K. Mehra and incorporated as Staffuer Chemicals Private Limited in July 1961, the name of the company was changed to Savita Chemicals (SCL) in February, 1965. It became a full-fledged public limited company in April, 1994.

Subject is a pioneer in the manufacture and sale of Petroleum Speciality Products and caters to the need of agriculture, cosmetic and pharmaceutical, defence, electrical, telecommunication, automotive and industrial lubricants. It’s 35 years of standing is marked by the development of high quality products backed by the best technical service to the customers. Subject has an infrastructure in excess of million dollars spread over four different manufacturing locations for strategic reasons of cost, transportability and easy access to the customers. The head quarter of the subject is located in the most prestigious business Centre, Nariman Point in Mumbai.

Subject was started in 1961 with barely two products viz. the light and heavy grades of liquid paraffins, it has grown into a conglomerate with as many as 20 different products categories catering to diversified industrial needs. This transformation was possible by the vision and dynamic leadership of late Mr. N. K. Mehra, who left a tradition and leadership style which is continued by Mr. Gautam Mehra, the present Chairman and the Managing Director of the group.

It started operations in 1961, manufacturing liquid paraffin, an import substitute, for the first time in India at its plant in Mumbai. Since then, it has expanded its product profile and is today one of the leading manufacturers of petroleum specialities, which include products such as petroleum sulphonates, transformer oils / white oils and petroleum jellies, among other speciality products.

Development work is continuing on Sulfonates, Hot Melt Adhesives and Speciality Waxes.

Promoted by N K Mehra and incorporated as Staffuer Chemicals Private Limited in Jul.'61, the name of the company was changed to Savita Chemicals (SCL) in Feb.'65. It became a full-fledged public limited company in Apr.'94.  

 It started operations in 1961, manufacturing liquid paraffin, an import substitute, for the first time in India at its plant in Bombay. Since then, it has expanded its product profile and is today one of the leading manufacturers of petroleum specialities, which include products such as petroleum sulphonates, transformer oils / white oils and petroleum jellies, among other speciality products. 

The company has tied up with a Japanese oil major, Idemitsu, which will supply the technical know-how to manufacture and market its entire range of automotive and industrial lubricants. It launched the automotive range of lubricants under the Idemitsu brand name in Nov.'94 for this project company came with public issue. 

The demand for company's product is increasing, for this company has plan to expand its network in Western, Northern and Southern India. SCL has initiated steps for obtaining the ISO 9001 certificate. 

Company has establish of power plant to generate, distribute and Supply electric based on Wind Energy at Satara District, Maharashtra. The Plant Was Commissioned on March-99. This power generage plant will be used for captive consumption and also supply to third parties on commercial basis. 

Development work is continuing on Sulfonates,Hot Melt Adhesives and Speciality Waxes.

OPERATIONS: 
The Company recorded another commendable performance in the year 2006-07 with gross sales turnover at Rs.9053.800 millions against Rs. 6804.700 millions in the year 2005-06, showing a growth of 33%. The net profit of the Company stood at Rs.472.600 millions as against Rs.374.900 millions for the previous year showing an increase of 26%. The growth in net profit of the Company kept pace with growth in sales turnover due to product price increases and cost reduction measures. 

During the year under review, four new Wind Energy Generators were commissioned by the Company. Of these, two were of 1,250 KW each and two were of 1,650 KW each. All of these were commissioned in the State of Maharashtra. These projects have taken the installed capacity for Wind Energy generation of the Company to 21.8 MWs. 

WHOLLY OWNED SUBSIDIARY IN UNITED ARAB EMIRATES: 

The Company had established a wholly owned subsidiary company, Solaris International FZE, in Sharjah (United Arab Emirates) in the financial year 2005-06. This subsidiary company is still in its infancy stage. During the financial year 2006-07, the business operations of the subsidiary company are being developed in a gradual manner. The Annual Accounts of the subsidiary company have been attached to this Annual Report. 

INDUSTRY STRUCTURE AND DEVELOPMENT: 

Petroleum Products: 

This segment for the Company comprises of three product groups; Transformer Oils, Liquid Paraffins / White Oils and Lubricating Oils. The main raw material for all of these product groups is Base Oils which are imported from various parts of the world and are also sourced domestically to some extent. These Base Oils are refined fractions derived from Crude Oils. 

The development, growth and expansion of the power generation and transmission infrastructure in the country determines the demand for Transformer Oils, whereas the prospects for Liquid Paraffins and White Oils are mainly decided by the market for cosmetics, pharmaceuticals and personal care products. 

Automotive sector and industrial units constitute the major market for lubricant products. The general industrial and economic conditions in the market decide the demand for this sector. The automobile sector consisting mainly of personal and commercial transportation and agricultural equipment categories decide the demand for the automotive lubricants. The extent of industrial activity and general economic environment decide the scope for industrial lubricants. 

Both domestic and multinational companies compete in the market in the Petroleum Products segment. The manufacturing sector as well as the automotive sector in India has shown a very robust growth over the last few years. 

II. Wind Power: 

Renewable and clean energy sources such as wind, offer an attractive option for India, which imports more than 70% of its crude oil needs at a cost of more than 40 billion dollars a year. The wind power sector in the country is in the process of going through a major transformation, which will put the sector in a higher growth trajectory. The Electricity Act 2003 has several provisions to encourage generation of electricity from renewable energy sources. The State Electricity Regulatory Commissions were empowered to specify percentage of electricity, which every distribution company has to buy from renewable source of energy. This has given a tremendous boost to the wind power sector, which is showing robust growth year after year. 

During the financial year 2006-07, installed capacity of wind power generation in India has exceeded 7,000 MWs thereby achieving an annual growth of 33%. 

B. OPPORTUNITIES AND THREATS: 

Petroleum Products: 

With the Indian economy growing at over 8% for the last couple of years, the demand for the Company's Petroleum Products continues to show a healthy growth. In the power sector, the government has projected a new capacity addition of 100,000 MWs in the 11th Five Year Plan. This, would amount to almost doubling the current power generation capacity. This would necessarily involve huge expenditure in power generation, transmission and distribution infrastructure. 

Hence the outlook for growth of Transformer Oil requirements within the country is very positive. However, the performance of this sector depends largely on the availability and pricing of the key raw material which is Base Oils, Crude Oil prices over the last two years have been very volatile. This in turn has an effect on Base Oil pricing. However, the availability of Base Oils has considerably improved over the last one year and with significant capacity additions expected in Asia over the next 2 - 3 years, the availability of Base Oils should further improve. 

Wind Power: 

Clean energy projects are gaining importance throughout the world due to limited stock of fossil fuels, their rising prices and ill effects such as greenhouse gas emission and accompanying global warming. Kyoto Protocol has provided opportunities for getting carbon credits for wind power projects. 

Some of the installations of the Company in Maharashtra and Karnataka totalling 9.45 MWs have already been registered for carbon credits with United Nations Framework Convention on Climate Change. 

However, the growth of this sector has been restricted due to various issues such as lack of evacuation infrastructure, regulatory risks and rising cost of the turbines due to demand supply mismatch. 

SEGMENT-WISE PERFORMANCE: 

Petroleum Products: 

The Petroleum Products sector continued to show good performance with aggregate sales at 173423 Kls/Mts during the financial year 2006-07 against 167343 Kls/Mts in the previous year, registering a growth of 4% and resulting in revenue of Rs 8788.700 millions against Rs.6638.200 millions in the previous year. 

Wind Power: 

During the financial year 2006-07, the Company commissioned 2 x 1,250 KWs and 2 x 1,650 KWs Wind Energy Generators all in the state of Maharashtra.

With this, the installed capacity in wind power sector of the Company now stands at 21.80 MWs. During the financial year 2006-07, the Company's wind power plants situated at Maharashtra, Karnataka and Tamilnadu states, generated 3.69 MWs against 2.65 MWs generated in the previous year. 

FUTURE OUTLOOK: 

Petroleum Products: 

With the Indian economy projected to grow at over 8% for 2007-08 and this growth momentum is expected to continue over the medium term, the demand for the Company's products is likely to remain robust. The huge capacity additions planned for the power sector should augur well for the demand for the Company's Transformer Oils. Also in the case of White Oils, increased spending by Indian consumers on products for personal care and hygiene should lead to strong growth for White Oils. 

In the Lubricating Oils segment, the growth in all sectors of automobiles, viz: two-wheelers, four-wheelers and commercial vehicles continues to be strong and as a result, the Company expects healthy growth for Lubricants as well. 

To meet the growing demand for the Company's products, capacity enhancements in each of the three product groups are being planned. 

Wind Power: 

Government of India is planning to increase total power generation capacity up to 200,000 MWs by the year 2012. In order to develop renewable energy sources on long-term basis, the RPS (Renewable Portfolio Standard) has been made mandatory for all distribution licensees. Further, the availability of carbon credits will lead to improved profitability from this sector.

Various state utilities are providing long term power purchase arrangements with attractive power purchase rates for the wind sector. 

The Company may therefore consider additional investments at appropriate sites to avail of the beneficial opportunities offered by the sector. 

Sale of power from Wind Power Plants in Maharashtra to Maharashtra State Electricity Distribution Company Limited (MSEDCL) is accounted at the rates specified in the Government of Maharashtra's Policy on Wind Power Generation, 1998. However, matters relating to determination of rates, wheeling and transmission loss charges were referred to Maharashtra Electricity Regulatory Commission (MERC). MERC has issued interim orders in this regard. On matters relating to wheeling and transmission loss charges, MERC has sought further data to determine the same. In view of the aforesaid, the Company has made necessary provision in this respect.

OTHER INFORMATION

Contingent Liabilities	31.03.2007 (Rs. in millions)
Letter of credit	64.680
Guarantee / Bonds	63.337
Corporate guarantee for subsidiary	180.000
Bills discounted with bank	17.198
Disputed Demands
- Excise and Customs	104.497
- Sales tax	19.366

Company’s products range inlcudes :-

Ø Gasolinle engine oil

Ø Diesel engine oil

Ø 2-cycle engine oil

Ø Turbine oils

Ø Heat transfer oils

Ø Gear oils

Ø Refrigeration oils

Ø Rolling oils.

Fixed Assets

Ø Freehold Land

Ø Leasehold Land

Ø Buildings

Ø Wind Power Plants

Ø Plant and Machinery

Ø Furniture, Fixtures

Ø and Office Equipments

Ø Vehicles

The company is in trade terms with :

Ø Basant Lok Trading Company

Ø Chemi Pharmex Private Limited.

Ø Gautam and Company.

Ø IOL Technologies Private. Limited..

Ø Kurla Investment and Trading Company. Private. Limited..

Ø Madhu Trust

Ø Naved Investment and Trading Company Private. Limited..

Ø Savita Petro-Additives Limited..

Ø Savita Polymers Limited..

Ø Siddharth Investments

Ø Devichand and Company

Ø Khatri Investments Private. Limited..

Ø Mansukhmal Investment Private. Limited..

Ø Savita Finance Corporation Limited..

WEBSITE DETAILS:

Products

Ø SAVONOL
Liquid Paraffin

Ø VITAGEL
Optic Fibre Cable Filling Compound

Ø TRANSOL
Transformer Oil

Ø SAVOFLOW
Pour Point Depressants

Ø TECHNOL
White Oil

Ø SULFOPET/SULFOSYN
Petroleum Sulfonates

Ø SAVOGEL
Petroleum Jellies

Ø SAVOWAX
Waxes

Ø SAVOFIL/SAVOFLOD
Cable Filling Compound

Ø IDEMITSU
Automotive and Industrial Lubricant

The International Business Division of Savita Group was set up in 1993 with a dedicated group of skilled professionals and a strong leadership. With a sharp customer-focus and an innovative attitude, the Savita Group is today India's largest exporter of Petroleum Specialities Products.

The company exports its products across the globe and is known for its customization, ISO 9001 Quality System and innovative packaging like Flexitanks, ISO tanks and optimized drum-stacking systems. Today, the company's global reputation is that of an ethical and reliable company with an efficient distribution channels.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.39.96
UK Pound	1	Rs.78.66
Euro	1	Rs.63.31

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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	YES
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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