MIRA INFORM REPORT

Report Date :

11.03.2008

IDENTIFICATION DETAILS

Name :	INDIAN OIL CORPORATION LIMITED
Registered Office :	Indian Oil Bhavan, G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai – 400 051, Maharashtra
Country:	India
Financials (as on):	31.03.2007
Date of Incorporation :	30.06.1959
Com. Reg. No.:	11-11388
CIN No.:	L23201MH1959G010I1388
TAN No.: [Tax Deduction & Collection Account No.]	MUM105274D
PAN No.: [Permanent Account No.]	AAAC11681G
Legal Form :	Public Limited Liability Company The company’s shares are listed on the Stock Exchanges
Line of Business :	Manufacturing and Selling of petroleum 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 1390000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company in its field. Available information indicates high financial responsibility of the company. Financial position of the company is good. Trade relations are fair. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions. It can be regarded as a promising business partner in a long run.

LOCATIONS

Registered Office :	Indian Oil Bhavan, G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai – 400 051, Maharashtra, India
Tel. No.:	91–22–26423272 / 26443880 / 26400926 / 26427363 Extn. 7616 / 7528
Fax No.:	91–22–26443880
E-Mail :	srikumar@indianoil.co.in , rajurang@indianoil.co.in
Website :	http://www.iocl.com
Head Office :	Y SCOPE Complex, Core 2, 7, Institutional Area, Lodhi Road, New Delhi - 110 003, India Tel. 91-11-24361247/24321704 Fax. 91-11-24361321 E-mail : dasgupta@iocl.co.in / pkc@iocl.co.in / govindarajank@iocl.co.in Website. http://www.iocl.com Contact Person : Mr. Chandan Dasgupta – Executive Director – Business Development [Gas] Mr. P. K. Chakraborti – Executive Director – Business Development Mr. K. Govindarajan – Executive Director – Petrochemicals Y P.O. Barauni Oil Refinery, District Begusarai - 861 114, Bihar, India Y P.O. Jawahar Nagar, District Vadodara - 391 320, Gujarat, India Y P.O. Noonmati, Guwahati - 781 020, Assam, India Y P.O. Haldia Refinery, District Midnapur - 721 606, West Bengal, India Y P.O. Mathura Refinery, Mathura - 281 005, Uttar Pradesh, India Y P.O. Panipat Refinery, Panipat – 132140, Haryana, India
Corporate Office :	3079/3, J B Tito Marg, Sadiq Nagar, New Delhi – 110049, India
Pipelines Division :	Y A-1, Udyog Marg, Sector 1, Noida – 201 301, Uttar Pradesh, India Y 14, Lee Rrado, Kolkata - 700 020, West Bengal, India Y P. O. Box 1007, Bedipara, Morvi Road, Gauridad, Rajkot - 360 003, Rajasthan, India Y P. O. Panipat Refinery, Panipat – 132 140, Haryana, India Y Indian Oil Bhavan, 139 Nungambakkam High Road, Chennai - 600 034, Tamil Nadu, India
Assam Oil Division :	Digboi - 786 171, Assam, India
Marketing Division :	HEAD OFFICE P O Panipat Refinery Baholi, District Panipat, Panipat, Haryana, India Tel. No. : 91-180-2578948/ 2578875 Contact Person : Ms. Mrinal Roy – General Manager – LPG Mr. Rajiv Shastri – General Manager [Incharge – Consumer Sales] Mr. A. M. K. Sinha – Executive Director [Retail Sales] Ms. Amitava Chatterjee – General Manager [Lubes] Mr. M. Nene – General Manager [Supplies] Mr. R. Sareen – General Manager [Aviation] Y Indian Oil Bhavan, 1, Aurobindo Marg, Yusuf Sarai, New Delhi - 110 016, India Y Indian Oil Bhavan, 2 Gariahat Road, South(Dhakuria), Kolkata - 700 068, West Bengal, India Y 254-C, Dr. Annie Besant Road, Prabhadevi, Mumbai - 400 025, Maharashtra, India
Research And Development Division :	Sector 13, Faridabad-121 007, Haryana, India
Overseas Offices :	Mr. K. Ramakrishnan, Managing Director Lanka IOC Limited 20^th Floor, West Tower, World Trade Centre, Colombo, Sri Lanka Tel: 00 94 1 475720, 00 94 1 475700 Fax: 00 9411 2391490 Email: lankaioc@lankaioc.com Mr. Rajesh Ahuja, Managing Director Indian Oil (Mauritius) Limited Mer Rouge, Port Louis, Mauritius Tel: (230) 217 2710 Fax: (230) 217 2712 Email:indianoil@intnet.mu Mr. D V Ramana Rao, Managing Director IOC Middle East FZE Indian Oil Corporation Limited Office: LOB 14209, Jebel Ali Free Zone, P. O. Box : 261338, Dubai, UAE Tel :+971-4-8871397 Fax: +971-4-8871035, Email: imefdxb@eim.ae

DIRECTORS

Name :	Mr. Sarthak Behuria
Designation :	Chairman
Name :	Mr. Arvind Murlidhar Uplenchwar
Designation :	Director [Pipelines]
Name :	Mr. Jaspal Singh
Designation :	Director [Refineries]
Name :	Mr. Brij Mohan Bansal
Designation :	Director [Planning & Business Development]
Name :	Mr. Serangulam Varadarajan Narasimhan
Designation :	Director [Finance]
Name :	Mr. Anil Razdan
Designation :	Director [w.e.f. 27.02.2006]
Name :	Mr. Pradeep Kumar Sinha
Designation :	Director
Name :	Prof. Samir Kumar Barua
Designation :	Director
Name :	Mr. Vineet Nayyar
Designation :	Director
Name :	Mr. Vijai Kumar Agarwal
Designation :	Director
Name :	Mr. Veeraraghava Ranganathan
Designation :	Director
Name :	Ms. Priya Mohan Sinha
Designation :	Director
Name :	Mr. Radhey Shyam Sharma
Designation :	Director
Name :	Mr. Naresh Kumar Nayyar
Designation :	Director [Planning & Business Development ] [up to 28.10.2005]
Name :	Mr. Milagiripattu Sundaravaradan Srinivasan
Designation :	Director [up to 02.01.2006]
Name :	Mr. Prabh Das
Designation :	Director [up to 27.02.2006]
Name :	Dr. Narasimha Gopaladesikachariar Kannan
Designation :	Director [Marketing] [up to 30.06.2006]
Other Personnel :-
Name :	Mr. Raju Ranganathan
Designation :	Company Secretary
Name :	Mr. A. S. Lamba, IAS
Designation :	Chief Vigilance Officer
Name :	Mr. M. B. L. Agarwal
Designation :	Executive Director [Internal Audit], Corporate Office
Name :	Mr. S. C. Agarwal
Designation :	Executive Director [Operations], Pipelines HO
Name :	Mr. C. Dasgupta
Designation :	Executive Director [Gas], Corporate Office
Name :	Dr. R. P. Verma
Designation :	Executive Director, R & D Centre
Name :	Mr. B. R. Choudhary
Designation :	Executive Director , Haldia Refinery
Name :	Mr. V. P. Sharma
Designation :	Executive Director [Projects], Refineries HO
Name :	Mr. S. S. Soni
Designation :	Executive Director [Optimisation], Corporate Office
Name :	Mr. B. K. Sharma
Designation :	Executive Director, Assam Oil Division
Name :	Mr. P. K. Chakraborti
Designation :	Executive Director, [Business Development – Refineries & Pipelines], Corporate Office
Name :	Mr. Anand Kumar
Designation :	Executive Director [Indian Oil Institute of Petroleum Management]
Name :	Mr. B. N. Bankapur
Designation :	Executive Director [Operatoins], Refineries HO
Name :	Mr. P. K. Goyal
Designation :	Executive Director [Corporate Finance], Corporate Office
Name :	Mr. V. K. Sood
Designation :	Executive Director [Regional Services & Marketing Coordination], Northern Region, Marketing Division
Name :	Mr. R. P. Pandey
Designation :	Executive Director [Strategic Storage], Corporate Office
Name :	Mr. S. C. Jain
Designation :	Executive Director [Finance], Refineries HO
Name :	Mr. J. P. Guharay
Designation :	Executive Director , Mathura Refinery
Name :	Mr. D. S. Gadhvi
Designation :	Executive Director [Projects], Pipelines HO
Name :	Mr. R. Narayanan
Designation :	Executive Director [Corporate Affairs], Corporate Office
Name :	Mr. A. K. Malhotra
Designation :	Executive Director [HR], Refineries HO
Name :	Mr. A. K. Guha
Designation :	Executive Director [Operations], Pipelines HO
Name :	Mr. K. Govindarajan
Designation :	Executive Director [Petrochemicals], Corporate Office
Name :	Mr. K. K. Gupta
Designation :	Executive Director [Safety, Health & Environment], Corporate Office
Name :	Mr. T. Vasudevan
Designation :	Executive Director [Business Development – Finance], Corporate Office
Name :	Mr. Gautam Datta
Designation :	Executive Director [Finance], Marketing HO
Name :	Mr. S. K. Garg
Designation :	Executive Director [Paradip Refinery Project], Refineries HO
Name :	Mr. A. K. Roy
Designation :	Executive Director [Corporate Planning & Economic Studies], Corporate Office
Name :	Mr. Thomas Antony
Designation :	Executive Director [HR], Corporate Office
Name :	Mr. K. K. Jha
Designation :	Executive Director [Eastern Region Pipelines]
Name :	Mr. Aloke Roy
Designation :	Executive Director [Exploration & Production], Corporate Office
Name :	Mr. C. Manoharan
Designation :	Executive Director [Panipat Refinery]
Name :	Mr. A. M. K. Sinha
Designation :	Executive Director [Retail Sales], Marketing HO
Name :	Mr. A. K. Rauniar
Designation :	Executive Director [HR[, Marketing HO
Name :	Mr. U. K. Basu
Designation :	Executive Director – Officiating, Gujarat Refinery
Name :	Mr. K. Rajaram
Designation :	Executive Director [Finance], R and D
Name :	Mr. Satish Kumar
Designation :	Executive Director [Human Resources]
Name :	Mr. R. K. Puri
Designation :	Executive Director – Guwahati Refinery
Name :	Mr. D. Lilly
Designation :	Executive Director [Pricing and Taxation]
Name :	Mr. H. V. Singh
Designation :	Executive Director [Projects] Refineries
Name :	Mr. V. S. Okhde
Designation :	Executive Director [Corporate Planning and Economic Studies]
Name :	Mr. R. K. Ghosh
Designation :	Executive Director – Haldia Refinery
Name :	Mr. N. K. Khosla
Designation :	Executive Director [Projects and Panipat Refinery]
Name :	Mr. Sudhir Bhalla
Designation :	Executive Director [Human Resources] Refinery

MAJOR SHAREHOLDERS

As on 31.12.2007

Names of Shareholders	No. of Shares	Percentage of Holding
Shareholding of Promoter and Promoter Group2
Indian
Central Government/ State Government(s)	958077855	80.35
Public shareholding
Institutions
Mutual Funds/ UTI	13914668	1.17
Financial Institutions/ Banks	458269	0.04
Central Government / State Government(s)	1350000	0.11
Insurance Companies	37935192	3.18
Foreign Institutional Investors	22552449	1.89
Non-institutions
Bodies Corporate	112100741	9.40
Individual- Individual shareholders holding nominal share capital up to Rs. 1 lakh	31136008	2.61
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh.	799942	0.07
Any Other (specify)
Non-resident Indians	445099	0.04
Trusts	13073503	1.10
Clearing Members	511044	0.04
Custodian of Enemy Property	19536	0.00
Total	1192374306	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of petroleum products.

Products :

Product Description	Item Code No.
Bulk Petroleum Products	27.10
Crude Oil	27.09
Lubricants	2710.90

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Crude Processing	MTs	45.000	42.850	39.884
Lubricating Oil Note C Note E	MTs	0.248 0.464	0.248 0.396	0.169 0.225
Wax/Bitumen/Asphalt Lube Oil Drums	Nos.	1.500	1.500	0.445
Oxygen Plant	CU.M.	NA	0.084	0.00
Propylene Recovery Unit	MTs	0.054	0.048	0.014
MTBE Unit	MTs	0.048	0.037	0.024
Butene Plant	MTs	0.017	0.017	0.00
Lab Plant	MTs	0.120	0.120	0.122
PX /PTA Plant	MTs	0.553	0.553	0.197
Cryocontainer and Accessories	Nos.	0.013	0.017	0.018
Industrial Explosive	MTs	0.050	0.020	0.006
Site Mixed Slurry Explosives	MTs	0.106	0.099	0.042

GENERAL INFORMATION

No. of Employees :

30048

Bankers :

Ø State Bank of India

Ø United Bank of India

Facilities :

As on 31.03.2007

[Rupees in Millions]

SECURED LOANS :

Bonds

Non-Convertible Redeemable Bonds – V

3160.000

Non-Convertible Redeemable

Bonds – VI

10000.000

Non-Convertible Redeemable Bonds – VII B

5000.000

Loans and Advances from Banks :

Cash Credit

15029.000

Interest accrued and due on above

25.200

Loans and Advances from Others :

Loan through Collateralized Borrowings and Lending Obligation [CBLO] of Clearing Corporation of India Limited [CCIL]

23500.000

Total

56714.200

Note:

A. 158 Bonds of face value of Rs. 26.000 Millions each allotted on 18th July 2001, are redeemable in 13 equal installments from the end of 3rd year upto the end of 15th year from the date of allotment. Accordingly, 3rd installment was paid in July 2006. The Bonds carry a coupon rate of 10.25% per annum payable annually on 30th September. These are secured by way of legal mortgage over the company's premises no. 301 situated in Bandra Anita Premises Co-op. Housing Society Ltd. at Bandra, Mumbai together with 5 shares of Bandra Anita Premises Co-op. Housing Society Ltd. These bonds are also secured by way of charge on immovable properties at Panipat Refinery in the state of Haryana ranking pari-pasu with Bond series VI holders.

B. 10,000 Bonds of face value of Rs. 1.000 Millions each, allotted on 10th June 2005, are redeemable at par on 10th June 2012. The Bonds also carry a put/call option at the end of 5 years from the date of allotment i.e. 10th June 2010, on exercise of which the Bonds are redeemable at par. The Bonds carry an annual coupon rate of 7.15% payable annually on 30th June. These are secured by way of registered mortgage over company's premises no. 1343 situated at MIG Adarsh Nagar Co-op Housing Society Ltd at Worli, Mumbai-400 025 together with 5 shares issued by MIG Adarsh Nagar Co-op Housing Society Ltd. These Bonds are also secured by way of charge on immovable properties of the Company at Panipat Refinery in the state of Haryana ranking pari passu with Bonds series V holders.

C. 7,250 Bonds of face value of Rs. 1.000 Millions each allotted on 15th September 2005; have been paid on 15th September; 2006 upon exercising of put option by the Bondholders.

D. 5,000 Bonds of face value of Rs.1.000 Millions each, allotted on 15th September 2005, are redeemable at par on 15^th September 2015. The Bonds carry an annual coupon rate of 7.40% payable annually on 15th September. These .are secured by way of registered mortgage on the immovable properties of the Company at Gujarat Refinery situated at Vadodara in the state of Gujarat.

E. Against hypothecation of raw materials, stock-in-trade, sundry debtors, outstanding monies, receivables, claims, contracts, engagements etc.

F. Secured against Collateral security of (i) Rs. 23208.100 Millions of 7% Oil Companies GOI Special Bonds 2012, (ii) Rs. 11280.000 Millions of 7.47% Oil Marketing Companies GOI Special Bonds 2012 and (iii) Rs. 3980.000 Millions of 7.33% Oil Marketing Companies GOI Bonds 2009 with CCIL totalling to Rs. 38468.100 Millions

UNSECURED LOANS :	As on 31.03.2007 [Rs. in Millions
Public Deposits	40.900
Short Term Loan and Advances
a] In Foreign Currency	86698.400
B] In Rupee	31657.300
Export Packing Credit
In Foreign Currency	5217.600
Total	123573.300
Other Loan and Advances
From banks and Financial Institutions
[a] Canara Bank	8696.000
[b] BNP Paribas Syndication US $ 300 Million (2006 : US $ 175 Million) (US $ 50 million repayable in January 2011, US $ 25 million in February 2011, US $ 100 Million in March 2011, US $ 50 million in April 2011, USD $ 25 million in each of the months of May 2011, June 2011 and July 2011)	13044.000
[c] BNP Paribas Syndication US $ 200 Million (2006 : US $ NIL Million) (Refinanced US $ 200 Million in JPY, repayable in equivalent JPY US $ 70 Million in January 2010, US $ 60 Million in February 2010 and US $ 70 Million in March 2010)	8696.000
[d) Leaseplan North America Inc US $ 48.25 million (2006 : US $ 53.93 million) (fully guaranteed by Export Import Bank of US and repayable in 20 half yearly installment w.e.f. March 2006) (amount repayable within one year Rs. 246.800 Millions)	2098.100
Total	32534.100
In Rupee
a) Citibank Bank (repayable in 4 equal half yearly installment w.e.f. November 2006, amount repayabale within one year Rs. 1000 Millions)	1500.000
b) Corporation Bank (repayable in June 2008)	3000.000
c) Union Bank of India (repayable in August 2008)	5000.000
d) IDBI (repayable in October 2014. The facility also has a put/call option at the end of 7th year.)	5000.000
e) IDBI (repayable in 5 equal half yearly installments w.e.f. May'06. Amount repayable within one year Rs. 2000 Millions)	3000.000
f) State Bank of India (repayable in March 2009) ;	5000.000
Add: Interest accrued and due	22.900
Total	22522.900
From Others
a) OIDB (Repayable in 8 equal annual installments w.e.f. May'05) (amt payable within one year Rs. 1088.800 Millions (2006 : Rs. 1088.800 Millions )	6532.500
b) OIDB (Repayable in 8 equal annual installments w.e.f. Sept'07) (amount payable within one year Rs. 1185.000 Millions	9480.000
c) OIDB (Repayable in Sept'07)	10000.000
d) OIDB (Rs. 2950 Millions repayable in June' 2009, Rs. 770 Millions repayable in July'2009 and Rs. 5709.000 Millions repayable in March 2010)	9429.000
Total	35441.500
Total of 4	214112.700

Banking Relations :	Good
Auditors :	Statutory Auditors Suresh Chandra & Associates Chartered Accountants M. M. Nissim & Company Chartered Accountants K. K. S. & Company Chartered Accountants Branch Auditors S. K. Kapoor & Company Chartered Accountants S. Mohan and Company Chartered Accountants Sarma & Company Chartered Accountants Mehra Goel & Company Chartered Accountants M. R. Narain & Company Chartered Accountants Guha Nandi & Company Chartered Accountants De Chakraborty & Sen Chartered Accountants Deoki Bijay & Company Chartered Accountants Shah Merchant & Associates Chartered Accountants
Joint Ventures :	Indian Oiltanking Limited Date of Incorporation : 28.08.1996 Promoters & Equity : IOC: 50% Oiltanking GmbH: 50% Lubrizol India Private Limited Date of Incorporation : Existing Company restructured w. e. f. 01.04.2000 Promoters & Equity : IOC: 50% Lubrizol Corporation USA: 50% Petronet VK Limited Date of Incorporation : 21.05.1998 Promoters & Equity : IOC, PIL : 26% each, RPL, EOL : 13% each, SBI, KPT, GIIC, IL&FS : 05% each, CB : 02% Petronet CI Limited Date of Incorporation : 07.12.2000 Promoters & Equity : IOC, PIL, RPL : 26% each  EOL, BPC: 11% each Indian Oil Petronas Private Limited Date of Incorporation : 03.12.1998 Promoters & Equity : IOC: 50% Petronas, Malaysia: 50% Indian Oil Panipat Power Consortium Limited Date of Incorporation : 06.10.1999 Promoters & Equity : IOC: 50% MC: 50% Avi-Oil India Private Limited Date of Incorporation : 04.11.1993 Promoters & Equity : IOC: 25% Balmer Lawrie: 25% NYCO SA, France: 50% Petronet India Limited Date of Incorporation : 26.05.1997 Promoters & Equity : IOC, BPC, HPC : 16% each, RPL, IL&FS, ICICI, SBI, EOL : 10% each, IBP : 02% Petronet LNG Limited Date of Incorporation : 02.04.1998 Promoters & Equity : IOC, BPC, GAIL,ONGC : 12.5% each, Gaz de France International : 10%, Asian Development Bank : 5.2%, Public Issue : 34.8% Green Gas Limited
Associates :	Ø Indo Mobil Limited Ø Petronet CTM Limited Ø Petronet CIPL Limited Ø Indian Oil TCG Petrochem Limited
Subsidiaries :	Ø Indian Oil Blending Limited, Pir Pau, Trombay, Mumbai – 400074, Maharashtra, India Ø Indian Oil Mauritius Limited, Suite 619, Level 6, St. James Court Denis Street, Port Louis, Mauritius Line of Business: Terminating, Retailing and Aviation refueling Ø Chennai Petroleum Corporation Limited, 536, Anna Salai, Teynampet, Chennai – 600018, Tamil Nadu, India Line of Business: Refining Ø Bongaigaon Refinery and Petrochemicals Limited, P.O. Dhaligaon, District Bongaigaon, Assam – 783385, India Line of Business: Refining and Petrochemicals Ø IBP Company Limited, IBP House, 34-A, Nirmal Chandra Street, Kolkata – 700013, West Bengal, India Ø Lanka IOC Limited, World Trade Centre, 20^th Floor, West Tower, Colombo, Sri Lanka Line of business: Retailing, Terminating and Bunkering Ø Indian Oil Tanking Limited Ø Indian Strategic Petroleum Reserves Limited Ø IOC Middle East FZE, LOB 14209, Jebel Ali Free Zone, P. O. Box 261338, Dubai, UAE Line of Business : Lube blending and marketing of petroleum products
Membership :	Ø Confederation of Indian Industry

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000000	Equity Shares	Rs. 10/-	Rs. 25000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1168012200	Equity Shares	Rs. 10/-	Rs. 11680.122 millions

Out of which:

1. Shares allotted as fully paid without payment being received in cash:

a) Pursuant to the Petroleum Companies Amalgamation Order, 1964: 3,76,49,700 Shares of Rs. 10 each

b) Pursuant to Gujarat Refinery Project Undertaking (Transfer), (Amendment) Order 1965: 10000000 Shares of Rs. 10 each

2. Shares allotted as fully paid up Bonus Shares by Capitalisation of General Reserve: 1066295000 shares of Rs. 10 each

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	11680.100	11680.100	11680.100
2] Share Capital Suspense Account	243.600	0.000	0.000
3] Reserves & Surplus	336649.200	281346.600	248163.500
4] (Accumulated Losses)	0.000	0.000	0.000
NETWORTH	348572.900	293026.700	259843.600
LOAN FUNDS
1] Secured Loans	56714.200	77935.400	24912.300
2] Unsecured Loans	214112.700	186107.700	148290.100
TOTAL BORROWING	270826.900	264043.100	173202.400
Deferred Tax Liability (Net)	53797.000	44229.400	43053.400
TOTAL	673196.800	601299.200	476099.400
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	333702.200	250234.200	233807.900
Dismantled Capital Stores	174.100	252.700	144.400
Capital work-in-progress	43768.900	96200.300	87194.700
INVESTMENTS	199908.600	145213.900	55549.300
Advances for Investments	70.000	50.00	1500.000
Finance Lease Receivables	487.300	705.700	954.900
CURRENT ASSETS, LOANS & ADVANCES
Inventories	247026.900	242777.900	195048.200
Sundry Debtors	67360.600	66994.800	56898.700
Cash & Bank Balances	9259.700	7441.700	4463.200
Other Current Assets	7753.500	315.500	0.000
Loans & Advances	59171.000	47301.000	60457.900
Total Current Assets	390571.700	364830.900	316868.000
Less: CURRENT LIABILITIES & PROVISION
Current Liabilities	265767.600	236978.500	200750.700
Provisions	31291.100	19785.100	19500.000
Total Current Liabilities	297058.700	256763.600	220250.700
Net Current Assets	93513.000	108067.300	96617.300
MISCELLANEOUS EXPENSES	1572.700	575.100	330.900
TOTAL	673196.800	601299.200	476099.400

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		2382965.400	1928175.300	1536047.800
Other Income		64351.300	29394.300	14772.500
Total Income		2447316.700	1957569.600	1550820.300
Profit/(Loss) Before Tax		104850.000	67059.900	59551.800
Provision for Taxation		29855.300	17908.700	10638.000
Profit/(Loss) After Tax		74994.700	49151.200	48913.800
Earnings in Foreign Currency :		91262.300	56175.600	35489.000
Total Imports		876776.500	681959.900	464944.400
Expenditures :
	Raw Materials	1925885.900	1581522.300	1224764.200
	Excise Duty	218495.200	186592.400	143742.000
	Power & Fuel Cost	4153.000	3350.600	2727.200
	Other Manufacturing Expenses	69630.400	60258.200	61497.700
	Employee Cost	25868.000	18441.600	18291.700
	Selling and Administration Expenses	32789.200	27136.200	24139.100
	Miscellaneous Expenses	22576.900	6659.200	5875.900
	Interest & Financial Charges	15357.700	10527.900	6041.700
	Profit before Depreciation & Tax	130753.100	89074.500	80279.800
	Depreciation	2590.3.100	22014.600	20728.000
	Increase/(Decrease) in Finished Goods	1807.300	[25993.300]	[16539.000]

QUARTERLY RESULTS

PARTICULARS	30.06.2007	30.09.2007	31.12.2007
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	528619.600	561487.000	640585.300
Other Income	16943.900	12782.700	13463.100
Total Income	545563.500	574269.700	654048.400
Total Expenditure	514433.100	510274.400	610910.500
Operating Profit	31130.400	63995.300	43137.900
Interest	3374.100	3335.300	3879.600
Gross Profit	27756.300	60660.000	39258.300
Depreciation	6747.800	6764.700	6662.900
Tax	6068.100	13914.300	12458.300
Reported PAT	14684.100	38177.500	20906.900

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	0.83	0.79	0.60
Long Term Debt-Equity Ratio	0.43	0.38	0.29
Current Ratio	0.85	0.88	0.90
Fixed Assets	4.84	4.61	4.03
Inventory	9.73	8.81	8.92
Debtors	35.48	31.13	31.79
Interest Cover Ratio	6.69	7.37	10.86
Operating Profit Margin(%)	5.40	5.17	5.62
Profit Before Interest And Tax Margin(%)	4.31	4.02	4.27
Cash Profit Margin(%)	3.71	3.69	4.53
Adjusted Net Profit Margin(%)	2.62	2.55	3.18
Return On Capital Employed(%)	17.51	15.69	16.73
Return On Net Worth(%)	19.47	17.78	19.95

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Indian Refineries and Indian Oil Company were set up in 1958 and 1959 respectively, to build national competence in the oil refining and marketing business. In 1964, these two companies merged to form the subject. It is the largest and most dominant player in the downstream petroleum sector.

IOCL controls 10 of India's 18 refineries with a combined refining capacity of 54.20 million tones per annum. These includes two refineries of subsidiary Chennai Petroleum Corporation Limited and one of Bongaigaon Refinery and Petrochemicals Limited. IOCL and its subsidiaries account for 47% petroleum products market share among public sector companies, 41% national refining capacity and 51% downstream product pipeline capacity. It also owns and operates crude oil and product pipelines of over 9000 Km across the country. IOCL also has the largest marketing network in the country, comprising over 30000 sales points backed for supplies by 183 bulk storage points and depots, 88 Indane bottling plants and 97 Aviation Fuel Station to cater the Aviation, Defence as well as Civil industry. Indian oil together with IBP operates the largest and the widest network of petrol and diesel stations in the country numbering over 15,000. In the overseas business, the company continues to explore new opportunities and coordinate business activities between its various overseas offices at Dubai, Kuwait, Kuala Lumpur, Sri Lanka and Mauritius. 

IOC has it subsidiaries namely Chennai Petroleum Limited, Bongaigaon Refinery and Petrochemicals Limited, IBP Company Limited, Lanka IOC Limited, Indian Oil Mauritius Limited, Indian Oil Technologies Limited, Indian Strategic Petroleum Reserve Limited. 

During 2000-2001, the company acquired the entire holding of Government of India (GOI) in Chennai Petroleum Corporation (CPCL) (51.81%) for Rs. 5093.3 millions and Bongaigaon Refinery & Petrochemicals (BRPL) (74.46%) for Rs. 1488.000 millions, thereby making these companies subsidiaries of it. It has also acquired IBP & Company Limited by purchasing 33.58% equity capital at a price of Rs. 11540 millions.  

As a vertical integration through E&P initiatives, the company along with ONGC Videsh Limited was awarded the Farsi Exploration Block in Iran. The main operator will be ONGC Videsh in which IOCL will have 40% equity participation. 

The company is investing Rs. 244000 millions during the X Plan period from 2002to 2007, in integration and diversification projects apart from refining and pipeline capacity augmentation, product quality upgradation and retail expansion. As part of expansion, the company commissioned the world largest single train Linear Alkyl Benzene plant at Koyali Refinery in August 2004and the on-going integrated Paxaxylene/Purified Terephthalic Acid plant &World-Scale Naphtha Cracker with downstream polymer projects are part of this expansion. The company is also planning to convert the Paradip Refinery into a refinery-cum-petrochemicals complex. 

IOCL in association with other companies was awarded 11 exploration blocks in NELP and acquired participating interest in on-shore blocks in Assam and Arunachal Pradesh region. The company has now finalized an import deal for1.75 Millions tones of LNG per annum with Iran for supplies from the year2009 onwards. The company has proposed to develop gas blocks in the North Pars fields of Iran jointly with Petropars, a subsidiary of National Iranian Oil Company. IOCL is first Indian and 6th Global Company to develop marine Oils and also obtained global approvals for shipboard applications in the entire family of vessels of MAN B&W, Denmark and Wartsila, Finland. 

During 2005 the new Panipat-Rewari product pipeline was commissioned and this network was expanded to 7,730 km. Also the company has completed LAB plant at Gujarat Refinery, MS quality improvement project & Diesel hydro treating plant at Mathura Refinery, Sidhpur-Sanganer products pipeline. Some of the ongoing projects of the company are Panipat Refinery expansion from 6 to 12 million tones per annum, crude oil blending facilities at Mundra, bottling Plants at Ilayangudi, Raipur and Vasai. The new projects of the company during this period are Chennai- Bangalore product pipeline, LPG Bottling plant at Mathura etc., 

During 2005-06, Indian oil entered into South India with the commissioning of the 681-km Chennai-Trichy-Madurai product pipeline. With the commissioning of several other key projects, including the Sidhpur-Sanganer product pipeline and branch line to Ajmer and the Mundra-Churwa crude oil pipeline, the pipeline network was expanded to 9024 km during the year. A section of the Kandla-Bhatinda pipeline from Sidhpur to Sanganer was also converted to crude oil service to ensure enhanced crude oil availability to Mathura and Panipat refineries. 

During the year under report, IOC completed projects for Doubling of capacity at Panipat Refinery from 6 to 12 million tonnes per annum , Paraxylene/Purified Terephthalic Acid (PX/PTA) unit at Panipat., MS quality improvement projects at Mathura and Haldia refineries, Diesel hydro-treatment facilities at Mathura Refinery, Chennai-Trichy-Madurai and Sidhpur-Sanganer product pipelines - Mundra-Churwa (Kandla) crude oil pipeline and conversion of Kandla-Panipat section of Kandla-Bhatinda pipeline to crude oil service. 

Subject also has many projects which is under implementation like capacity expansion of Panipat Refinery from 12 to 15 million metric tones per annum, Naphtha Cracker with downstream polymer units at Panipat, Hydrocracker for improvement in diesel quality and distillates yield at Haldia Refinery, MS quality improvement project at Gujarat Refinery, Paradip-Haldia crude oil pipeline project, capacity augmentation of Mundra-Panipat crude oil pipeline from 6 to 9 million tones per annum, Koyali-Ratlam product pipeline project, Dadri-Panipat R-LNG spur pipeline project, New depots/terminals at Chittorgarh, Trichy, Jasidih, Ratlam, Mandir Hasud, Zewan and Lalkuan, Indane (LPG) bottling plants at Raipur and Mathura. 

Subject is undertaking projects like 15 million tones per annum integrated refinerycum-petrochemicals complex at Paradip, MS quality upgradation projects at Panipat, Mathura, Barauni, Digboi and Guwahati refineries and Residue upgradation and MS/HSD quality improvement projects at Gujarat Refinery during 2005-2006. 

Subject's production capacity of Lubricating Oil was expanded from 286000 MTs to 525000 MTs. 

Indian oil Blending Company Limited, a wholly owned subsidiary of the company was merged with the company w. e. f. 12^th May 2006. 

The merger of IBP Company Limited with Indian Oil is at an advanced stage with the shareholders of both the companies approving the Scheme of Amalgamation with a swap ratio of 110 equity shares of Indian Oil for 100 equity shares of IBP Company Limited.  

The valuation process for the merger of Bongaigaon Refinery & Petrochemicals Limited. (BRPL) with Indian Oil is in progress after the Boards of both the companies accorded 'in-principle' approval for the merger. 

In accordance with the decision of the Government of India, Indian Oil has transferred its entire equity holding in Indian Strategic Petroleum Reserves Limited (ISPRL) to the Oil Industry Development Board, a Government body functioning under the Ministry of Petroleum & Natural Gas. Consequently, ISPRL ceased to be a wholly-owned subsidiary of Indian Oil effective 9th May, 2006. Indian Oil has formed a wholly-owned subsidiary company, viz., IOC Middle East FZE, in Jebel Ali Free Trade Zone, Dubai, with the objective of marketing lubricants and other petroleum products in the Middle East, Africa and CIS regions. 

A joint venture company, viz., Indo-Cat Private Limited, was incorporated in June 2006. The Company is a 50:50 venture between Indian Oil and Intercat. Inc. of USA for manufacture and marketing of FCC catalysts and additives. Green Gas Limited, was incorporated in October 2005 as a joint venture between Indian Oil and GAIL (India) Limited for city gas distribution in Agra and Lucknow. 

The company has been accredited with the ISO certification.

It is in trade terms with :

Ø AEP Company

Ø Isspat Engineering

Ø Jaishree Udhyog

Ø Yamuna Gasses and Chemicals

Ø Associated Industries

Ø Tractel Trifor

Ø Brijbasi Udyog-Mathura

Ø Tube Bend, Kolkata, West Bengal, India

Ø Econo Walves Private Limited

Ø IGP Engineering Limited

Ø Commercial Supply Agency

Ø Fixfit Fasterners Limited

Ø Nireka Engineering

Ø Precision Auto Engineers, Ludhiana, Punjab, India

Overseas offices were opened at Dubai, Kuwait, Mauritius and Kuala Lumpur in line with the Corporate Vision of transitional role for the company.

The company’s fixed assets of important value include Land (Freehold, Leasehold and Right of way), Buildings, Roads, Plant & Machinery, Transport Equipments, Furniture and Fixtures, Railways Sidings, Drainage, Sewage and Water Supply System.

CONTINGENT LIABILITIES

Ø Show Cause Notices issued by various Government Authorities are not considered as obligation.

Ø When the demand notices are raised against such show cause notices and are disputed by the Company, these are classified as disputed obligations.

Ø The treatment in respect of disputed obligations, in each case above Rs. 0.500 Million, are as under:

a) a provision is recognized in respect of present obligations where the outflow of resources is probable;

b) all other cases are disclosed as contingent liabilities unless the possibility of outflow of

Resources are remote.

MOU PERFORMANCE: 

Indian Oil has been consistently earning 'Excellent' rating for its performance in its Memorandum of Understanding (MoU) with the Government of India for the past 17 years. As per the performance data submitted for the year 200607, the Corporation is expected to achieve 'Excellent' rating once again for the 8th consecutive year. 

OPERATIONS: 

Refineries: 
During the year, IndianOil's seven refineries clocked the highest-ever throughput of 44 million metric tonnes with 98% capacity utilisation, which translated into a 14% growth in crude oil processing over the previous year. For improved margins, the Corporation's seven refineries processed the highest ever percentage (43.8%) of highsulphur crude oil during the year as against the previous highest (38.5%) in the year 2005-06. Committed efforts in energy conservation resulted in record lowest overall energy consumption. The overall distillate yield of 72.5% wt. on crude was also the highest ever.

INDUSTRY STRUCTURE & DEVELOPMENTS: 

Global: 
The world economy exhibited robust growth in the year 2006, with the global output growing at 5.51% despite an unprecedented spike in crude oil prices in the international market. This resilience of the world economy, even in the face of volatile crude oil prices and concerns about continuing global macro-economic imbalances and inflation, points to the emergence of a new phase of global economic growth. An encouraging feature of this new phase has been the robust and broadbased growth in emerging market economies, particularly with both India and China together accounting for about 40% of the global growth measured in terms of purchasing power parity. 

Unlike in the 1970s, peaking oil prices have not adversely affected the world economy this time and only had a muted impact on its growth prospects, considering the fact that the fast pace of economic growth has driven up demand. However, according to the World Energy Outlook-2006 of the International Energy Agency, world economy would have grown by 0.3 percentage points more per year on an average since 2002, had oil and other energy prices not increased. 

India: 
In 2006-07, the Indian economy continued on its high ,growth trajectory for the fourth consecutive year. It scaled new heights, posted a record growth of 9.4%, accelerating from 9% recorded in the previous fiscal. The propellants of this extraordinary growth performance have been the services and industries sectors, with both posting a growth of 11% each in 2006-07. Growth of agriculture and allied activities, however, slowed down from 6% in 2005-06 to 2.7% in 2006-07. 

A key accompaniment and contributor to this remarkable performance in growth is India's strengthening external sector. Indian exports, both merchandise and services, continued to grow steadily despite the rising Indian Rupee. Petroleum product exports witnessed a steep rise of over 55% in dollar terms during 2006-07 and became the largest contributor to India's export earnings. Export of software and business services surged during the year, taking the invisibles account surplus to US$ 55.3 Billion for fiscal 2006. The upbeat investment and consumption sentiments fuelled a surge in imports. Non petroleum imports (raw material & capital goods) rose by 24.7% while petroleum imports posted a 30.3% growth during 2006-07. 

The growing integration of the -Indian economy with the world was reflected in a three-fold increase in foreign direct investment (FDI) flows into the country, to US$ 15.7 Billion in 2006-07 from US$ 5.5 Billion during 200506. It was further strengthened with domestic corporates seeking a global  presence for harnessing scale, technology, market access, and allied advantages through overseas acquisitions. There was a significant strengthening of capital account, with the foreign exchange reserves crossing US$ 200 Billion.

However, the growing inflationary pressures during the year raised concerns of overheating of the economy. The key to maintaining high growth with reasonable price stability lies in rapid capacity additions through investments and productivity improvements to match supply with demand, along with upgradation of skill sets. 

After 16 years, India has returned to Standard & Poor's 'Investment' grade rating from Speculative' grade, reflecting the upbeat confidence of the international investors in the country, its strong economic prospects, its external balance sheet, and its deep capital market with improving fiscal position. 

India also ranks ahead of China and Flussia in the Global Competitiveness Index, which evaluates countries on the performance of factors critical to driving productivity, and thereby growth, in the medium and long terms. The high-quality scientific research work and the pool of scientists, engineers and other highly skilled professionals in India have bolstered its competitiveness. India has also been placed on top of the chart by A.T. Kearny Global Services in their Location Index-2007, which analyses the top 50 outsourcing services locations worldwide. India continues to maintain a long lead over China in terms of these assessments. 

As per the International Monetary Fund (IMF) projections, the global economy is likely to maintain its run of strong growth during 2007 as well.

However, some downside risks to global growth prospects do exist, including among others, volatility in oil prices. According to IMF, India's economy would continue to grow rapidly in 2007 as well, though at a lower pace than in 2006.

OUTLOOK:  

Global Oil & Gas Industry: 

The causal relationship between global volatility of crude oil prices and geo-political uncertainties during the year was further compounded by low availability of spare production capacity in the oil exporting countries. Oil prices, therefore, continued to fluctuate over a high range. The Indian crude oil basket recorded a high of US$ 714 per barrel during August 2006. Later, during the year, a warm winter in the US, among other factors, led to a decline in crude oil prices, and the Indian basket touched a low of US$ 53 per barrel in January 2007. However, this respite did not last long. Prices hardened once again to US$ 60 per barrel in March 2007 and thereafter touched an all-time high of over US$ 74 per barrel in July 2007. With fossil fuels continuing to be the dominant source of energy in the immediate future, capital expenditure by petroleum majors across the globe in upgrading infrastructure in upstream, refining and pipelines segments remains a major challenge, particularly in the face of geo-political uncertainties in several parts of the world. 

On the other hand, integration of global gas markets has been one of the most positive developments in the recent years. Liquefied Natural Gas (LNG) has been one of the key drivers of this integration. Continuous lowering of costs across the value chain has transformed LNG economics. Besides, development of transnational gas pipelines amongst contiguous nations has grown into a viable supply option in the current context. Changing economics due to technological advancements, expanded demand base, scale of operations, access to remote geographical regions for prospective gas finds, environmental concerns, etc., is leading to reasonably significant replacement of traditional liquid fuels by gas. 

INDIAN OIL & GAS INDUSTRY: 

India is the fifth largest consumer of energy in the world today, with oil & gas accounting for about 45% of its energy basket. As the economy moves further in this new phase of high growth, consumption of oil & gas in the country is projected to grow at rates above the world average. 

During 2006-07, crude oil production at 34 million metric tonnes (MMT) grew by 5.6% over that of 2005-06. The exploration activities in the country are still dominated by the domestic oil companies, even though the upstream sector has been opened to foreign participation through the New Exploration & Licencing Policy (NELP). Recently, the Government of India awarded exploration contracts for 52 blocks under NELP-VI round against an offer of 55 blocks. A large number of bids were received from Indian as well as international companies, indicating the rising interest in exploration of the Indian basins. 

Additionally, both public and private sector companies from India are pursuing opportunities for acquiring equity & gas overseas. As a short-term measure, actions are underway for enhancing energy security by creating strategic reserves for crude oil through a special purpose vehicle funded by the Oil Industry Development Board (OIDB). As a viable alternative, exploration of Coal Bed Methane (CBM) is being strongly encouraged through Government policies. Recently, 10 blocks were awarded under the third round of CBM bidding. 

In 2006-07, with the doubling of the capacity of Indian Oil's Panipat Refinery from 6 to 12 million metric tonnes per annum (MMTPA) and commissioning of Essar Group's 10.5 MMTPA refinery at Vadinar, India's refining capacity increased to 148.97 MMTPA, from 132.47 MMTPA at the end of 2005-06. Further capacity additions to the tune of 92 MMTPA are envisaged during the XI Plan period (2007-12). 

During 2006-07, the total throughput of Indian refineries at 141.5 MMT was higher than 126.9 MMT during 200506, registering an impressive 11.4% year-on-year growth, and surpassing the planned throughput levels. 

Domestic consumption of petroleum products during the year at 119.9 MMT was higher by 5.7% as compared to 2005-06. With surplus refining capacity and favourable export opportunities, the Indian oil & gas industry registered a significant growth of over 55% in export sales in dollar terms during the year, as indicated earlier. 

As regards the Union Budget 2007-08, the oil & gas sector did not have many provisions to cheer about. Nevertheless, the reductions in excise duty on petrol and diesel and grant of infrastructure status to gas pipelines were welcome announcements. Efforts of the oil & gas industry to get infrastructure status accorded to petroleum pipelines, however, did not materialise. 

As directed by the Government of India, the principle of trade parity pricing was implemented from 1611 June, 2006 in respect of petrol and diesel, giving 80% weightage to import parity prices and 20% weightage to export parity prices, for determining the refinery transfer price of domestic refineries and also for estimating the underrealisation for the purpose of implementation of the mechanism of sharing of losses suffered by public sector oil marketing companies (OMCs) as per the approved mechanism. Further, in view of the reduction in refining margins due to implementation of trade parity pricing and reduction in duty protection to refiners, the stand-alone refineries did not offer any discounts on PDS kerosene and domestic LPG to the OMCs during 2006-07. 

However, to ease the financial burden on the OMCs arising out of controlled domestic prices of petrol, diesel, PDS kerosene and domestic LPG in the face of spiralling crude oil and petroleum product prices in the international market, the Government of India raised the prices of petrol and diesel marginally. However, later in the year, in view of decline in international crude oil prices and to ease the rising inflationary pressures, the increase in petrol and diesel prices was rolled back. Subsequently, the Government also issued Oil Bonds to the OMCs to compensate for the losses suffered by them on account of inadequate pasS7through of prices to the consumers. 

The report of the Expert Committee on Integrated Energy Policy (IEP) for India was released in August 2006. The objective of the IEP was to view the Indian energy sector in a holistic way - as an integrated system - so as to leverage the inter-linkages and substitutability between various sources and to develop synergies, resulting in optimal solutions. One of the main areas for which detailed recommendations have been made, is rationalisation of fuel prices. According to the Committee, full price competition should be introduced at the refinery gate and retail level. Among other things, it emphasises the need for an independent regulatory authority for the sector and revision in the subsidy mechanism for domestic LPG and PDS kerosene, so as to make it transparent and beneficial only to the targeted sections. 

Natural gas is becoming increasingly important in India's search for energy security. Production of natural gas during the year stood at 32.2 billion cubic metres (bcm), declining by 2% from the production level of 2005-06. However, the recent gas discovery in the KrishnaGodavari (KG) Basin has raised hopes of an increase in domestic natural gas production in future. Whereas the exploration and production efforts initiated by the Government of India are likely to result in further availability of natural gas from indigenous sources, the demand side analysis indicates that the natural gas demand in India will be largely influenced by its availability and cost-economics vis-a-vis liquid fuels, especially in the primary end-use sectors like power and fertilisers. 

Import of natural gas through transnational gas pipelines is an important effort to meet the growing demand of natural gas in the country. Inter-governmental discussions on Iran-Pakistan-India and Turkmenistan-Afghanistan-Pakistan-India pipelines are at different stages of negotiation. 

In December 2006, the Government of India notified the policy for development of natural gas pipelines and city / local natural gas distribution networks. This is a positive development, marking the transition to an environment where development of a natural gas pipeline network would take place under a well laid out legal framework aimed at encouraging competition and protecting consumer interests. 

The long-awaited Petroleum & Natural Gas Regulatory Board Act was enacted on 3rd April, 2006. As per the legislation, a Petroleum & Natural Gas Regulatory Board is to be set up to oversee and regulate refining, processing, storage, transportation, distribution, marketing and sale of petroleum products and natural gas in all parts of the country. It would also promote competitive markets. Under the regulatory regime, the operation of product pipelines is expected to witness emergence of a new business model based on common/ contract carrier principle, open access, regulated tariff, etc. The Board began its operations with effect from 2611 June, 2007. 

Development of alternative sources of energy is critical to major energy-importing countries like India in terms of price, energy security, sustainability of growth and economic welfare. Bio-fuels produced indigenously from diverse sources hold the potential for replacing a part of imported crude oil. Bio-fuels can also help in curbing greenhouse gas emissions, depending on the manner in which they are produced, besides contributing to the growth of the rural economy. Higher prices of conventional fossil fuels have made Bio-fuels competitive, but further cost reduction is needed for most of them to be able to compete effectively without subsidy. 

A country-wide implementation programme for Ethanol-Blended Petrol (EBP) has been drawn up by the Government of India, and the OMCs have been directed to tie up with suppliers and the State Governments for implementing this programme. While EBP is now being sold in several States, limited availability of ethanol and its price are considerably delaying implementation in certain States. The proposal to acquire acreages in Brazil for production of ethanol and its subsequent marketing either in the international markets or imports to India through a joint venture initiative between Indian OMCs and a suitable Brazilian partner is also being actively pursued. 

Keeping in view the prospects of using Hydrogen as a substitute for traditional fuels in the transport sector, the Ministry of Petroleum & Natural Gas has set up a corpus fund of Rs. 1000 Millions, with contributions from the national oil companies and OIDB, to undertake Hydrogen research activities with IndianOil's R&D Centre as the nodal agency. The National Hydrogen Energy Road Map is currently under preparation by the Ministry of New & Renewable Energy Sources. 

The proposal for setting up the Petroleum, Chemicals & Petrochemical Investment Regions (PCPIR) is another important initiative by the Government of India. By offering a transparent and investment-friendly policy and facility regime, PCPIRs aim to attract major investments, both domestic and foreign, in these key industry segments. 

The Indian hydrocarbon sector spends about Rs. 2002500 Millions on R&D every year, which is meagre compared to its annual turnover of over Rs. 6500000 Millions. In the context of globalisation and the need for improving energy efficiency, developing indigenous technology and alternative fuels, and concerns over environmental degradation, the expenditure on R&D efforts needs to be scaled up substantially, with enhanced participation from the private sector players. 

In view of the projected expansion of the activities in the oil & gas sector, one of the critical challenges for the sector is to plan for sustained availability of skilled workforce. In the face of the rising demand for skilled professionals from the global oil & gas industry and other sectors of the economy, the gap between availability of skilled manpower and requirements of the industry is likely to widen. An effort to meet this challenge is the proposal for establishing the Rajiv Gandhi Institute of Petroleum Technology in Uttar Pradesh for providing world-class education covering the entire hydrocarbon chain. 

RISKS AND CONCERNS: 

In contrast with the experience of the 1970s,the significant increase in crude oil and petroleum product prices since 2003 appears to have had only a muted impact on the global economy thus far. The impact of higher oil prices has been limited largely because of a significant increase in consumption, rather than exogenous supply shock. Further, there has been a substantial decline in the oil intensity of the economy since early 1980s. 

Under the erstwhile Administered Pricing Mechanism, the Indian economy was shielded against the global oil price spikes and any sharp increase in oil prices was dissipated by spreading it through smaller, incremental hikes over a period of time. This is not the case anymore. With crude oil prices stabilising above the US$ 60 per barrel mark being increasingly viewed to be permanent in nature, high oil prices are likely to result in higher subsidy costs. In this context, the Government's policy on subsidies necessarily needs a review. 

Indian Oil has been suffering losses due to price control on the four principal petroleum products. The subsidies received from the Government, discounts from upstream companies, refiners, and the Oil Bonds issued by the Government only partially offset these losses. As a result, Indian Oil continues to be mired by a huge financial burden of net under-realisation. This in turn, has adversely affected the financial performance of the Corporation. However, Indian Oil continues to pursue its capex programme with increased market borrowings. To maintain the flow of funds for investments. the Corporation has been selling the Oil Bonds issued to, it at a discount. 

With the rising competition in the petroleum retailing business, the density of retail outlets in the country has gone up substantially, which in turn has reduced the per Pump product throughput, thereby raising concerns about the profitability of individual retail outlets and the viability of dealerships. The rising competition in the institutional sales business has prompted the OMCs to resort to heavy discounts, which in turn has trimmed their marketing Natural gas is becoming the preferred fuel and feedstock for the fertiliser and power sectors, displacing liquid fuels, thereby eroding to some extent the growth prospects in petroleum refining & marketing, which is the core business of Indian Oil. With the anticipated increase in the availability of natural gas in the immediate future from recent gas finds in the Indian basins, there is little doubt that the new fuel will play a major role in the Indian energy market. 

As regards business in neighbouring countries, recovery of outstanding dues from Nepal Oil Corporation remains an area of concern, although some progress has been made on this front, with the beginning of a process of monthly payments. 

The long-pending issue of subsidy payment by the Government of Sri Lanka to the Corporation's subsidiary, Lanka IOC Ltd., has been settled after protracted negotiations. This has led to a renewed thrust on the business priorities of the subsidiary after a fairly long spell of uncertainty. 

The manpower recruitment scenario has undergone significant changes over a period of time and it is becoming increasingly difficult to induct desired talent from the premier institutes and other campuses of the country due to higher compensation packages being offered by the private sector players in the growing economy. 

CHALLENGES AND OPPORTUNITIES: 

The foremost challenge IndianOil faces is in transforming into the least-cost supplier - delivering quality products and services to customers at the lowest cost. Other major challenges include optimisation of refining processes, logistics & supply chain management; forging partnerships and
 strategic alliances across the entire value chain of the oil & gas business; timely execution and safe commissioning of projects; consolidation of retail and direct consumer businesses through better offerings to customers; retention of skilled manpower; and enhancing profitability, which is currently being compromised due to incomplete pass-through to customers due to price control on the four principal products. 

To offset the erosion in the growth prospects of liquid fuels due to replacement by natural gas, IndianOil is making all-out efforts to become a major player in the burgeoning natural gas business in the country. It has already ventured into gas marketing, sourcing its supplies from Petronet LNG Ltd. - its joint venture company. In this context, IndianOil has been nominated by the Ministry of Petroleum & Natural Gas as one of the consortium partners along with GAIL for participating in the Iran-Pakistan-India gas pipeline project. The on-going Government level discussions, therefore, have an important bearing on the Corporation's growth plans. Besides this, IndianOil has taken up with the Government of India to be considered as one of the partners in the proposed Turkmenistan-Afghanistan-Pakistan-india gas pipeline project.

Protection of ecology and environment is an area that has always occupied the attention of the Corporation. Meeting the stringent product quality standards in the marketplace and the environmental stipulations in refinery operations has been a major thrust area. The Corporation has already made significant investments in various quality upgradation projects at all its refineries and is engaged in continuously monitoring and improving upon the occupational health & safety standards with a view to eliminating risks to the stakeholders. More quality improvement projects are underway at IndianOil's refineries to meet the Euro-III/IV norms, which shall become effective from April 2010. 

For the IndianOil scientists, major opportunities abound in terms of development, demonstration and deployment through optimisation and upgradation of refinery processes to maximise product yields and reduce heavy ends; development of new-generation and energy-efficient lubricants; production of greases and bituminous products; storage and transportation of Hydrogen; initiation of further research in coal/residue gasification, petrochemicals and polymers, and commercialisation of technologies developed in-house. 

In its effort towards enhancing upstream integration, IndianOil, together with its consortium partners, has succeeded in acquiring eight blocks under different rounds of NELP, in addition to two CBM (Coal Bed Methane) blocks and two farm-in blocks in the Northeast. It has also developed an overseas portfolio of seven exploration blocks. Overseas upstream initiatives received further boost with the Government of India delegating investment decision-making powers to IndianOil and Oil India Ltd. (OIL) for acquiring oil & gas assets abroad by forming project-specific SPVs. The challenge for IndianOil is to develop expertise to become an exploration & production operator in the immediate future. 

The two new verticals of petrochemicals and gas business, which have already started generating substantial revenues for IndianOil, present a sizeable opportunity. In petrochemicals, the Corporation is focussing on increasing volumes in India and abroad through expansion of its customer base and innovative supply logistics. The production of PX/PTA at Panipat Refinery and LAB at Gujarat Refinery are the -Corporation's endeavours towards becoming a major player in the petrochemicals sector. The Naphtha Cracker project with downstream polymer units, currently under execution at Panipat, the integrated refinery-cumpetrochemicals complex proposed at Paradip and the setting up of petrochemical hubs at Panipat and Haldia are further steps in this direction.

Without having linkage with a major supply source for natural gas, the challenge in the gas business is to establish short, medium and long term supply linkages in a market constrained by non-availability and increasing prices. Within the natural gas business, city gas distribution is seen as a focussed area for rapid growth. IndianOil entered the city gas distribution business during the year, with the formation of Green Gas Ltd., a joint venture company with GAIL, which has become operational in Lucknow and Agra, with plans for expanding to other cities in Uttar Pradesh. IndianOil also signed a Memorandum of Understanding with Great Eastern Energy Corporation Ltd. (GEECL) for establishing city gas distribution networks in West Bengal based on CBM from GEECL's CBM blocks. A separate joint venture company is also being formed with GAIL for city gas distribution in West Bengal and subsequently in other eastern states. 

The Indian Bio-fuels programme has become a reality with the progressive initiatives taken by the Government of India through various policy initiatives and mandates given to the OMCs to include Bio-fuels in the oil & gas supply chain. Bio-fuels business is poised to create a silent revolution in the energy market and address the concerns for energy security. In keeping with the above mandate, IndianOil has taken the initiative of venturing into the entire value chain of Bio-diesel through a definitive business plan. 

The rural market is another area of opportunity for the Corporation. With a network of over 1,422 Kisan Seva Kendras (KSKs), IndianOil is now very much a part of the rising rural economy. The KSKs are expected to help drive future retail volumes in both fuel and lubricant segments, besides providing non-fuel conveniences to the rural population. This collaborative business model in the rural markets is expected to contribute significantly to the aspirations of the rural population.

In the urban markets, IndianOil has created a new window of opportunity - SERVOXpress outlets, which are being positioned as a refreshing one-stop shop for autocare, including engine oil change and maintenance checkups for two and four-wheelers. The first such outlet was commissioned in a Central Mumbai mall in April 2007. More such outlets are planned to be rolled out. Automation of retail outlets and having in place a system for tracking the movement of tank trucks transporting petroleum products to dealers and customers, are steps for improving the quality and quantity aspects of our product and service offerings. These will be the thrust areas this year. 

With sustained determination and creation of institutional capabilities, supported by decisive policy initiatives, IndianOil has been taking significant steps to realise its corporate vision of emerging as a diversified, transnational, integrated energy major. 

FINANCIAL REVIEW: 

Amalgamation of erstwhile IBP Company Limited: 

Consequent upon the merger of IBP Co. Ltd. (IBP) with IndianOil, the financial statements of IndianOil for the year ended 31st March, 2007 have been prepared by including the financials of erstwhile IBP as a separate Division. Since figures for the previous year 2005-06 do not include the financials of erstwhile IBP, the same are to that extent not comparable with the figures for the current year. 

Turnover: 
The turnover (inclusive of excise duty) of IndianOil for the year ended 31st March, 2007 was Rs. 2207790 Millions as compared to Rs. 1831720 Millions in the previous year. The total sales of petroleum products (including natural gas) for 2006-07 was 57.97 MMT as against 49.61 MMT (excluding IBP sales) during 2005-06. 

Profit Before Tax: 

The Corporation's Profit Before Tax was Rs. 104850 Millions during 2006-07 as compared to Rs. 67060 Millions in 2005-06. The profit for 2006-07 includes a profit of Rs. 32250 Millions on sale of 20% equity holding in Oil & Natural Gas Corporation Ltd. (ONGC) and provision of Rs. 13190 Millions for diminution in investments in erstwhile IBP, which is vested in a Trust formed consequent to the amalgamation, while the profit for 2005-06 included a profit of Rs. 4380 Millions on sale of 50% equity holding in GAIL (India) Ltd.

Provision for Taxation:

a) Current Tax: 

An amount of Rs.21120 Millions has been provided towards Current Tax for 2006-07, considering the applicable income tax rates, as against Rs. 16180 Millions provided during 2005-06. 

b) Fringe Benefit Tax: 

An amount of Rs. 390 Millions has been provided towards Fringe Benefit Tax for 2006-07, as against Rs.570 Millions provided during 2005-06. 

c) Deferred Tax: 

An amount of Rs. 8350 Millions has been provided towards Deferred Tax in the current financial year, as against Rs. 1160 Millions provided during the previous financial year. 

Profit After Tax: 

Indian Oil earned a Profit After Tax of Rs. 74990 Millions for the financial year 2006-07 as compared to Rs. 49150 Millions in 2005-06.

Depreciation & Amortisation: 

Depreciation for the financial year 2006-07 was Rs. 26.320 Millions as against Rs. 22030 Millions in the previous year. The increase in deprecation in 2006-07 is mainly due to capitalisation of Panipat Refinery expansion project and the PX/PTA plant. 

Interest (Net): 

Interest Expenditure (Net) of the Corporation for the year 2006-07 was Rs.6750 Millions, as against Rs. 8160 Millions in 2005-06. 

Earnings in Foreign Currency: 

During the year, Indian OiI earned Rs. 91260 Millions in foreign currency mainly on account of export of petroleum products as against Rs. 56180 Millions in 2005-06. This includes Rs. 13460 Millions received in Indian currency out of repatriable funds, as against Rs.21540 Millions in the previous year. 


WEBSITE DETAILS

Subject was formed in 1964 through the merger of Indian Oil Company Limited (Established 1959) and Indian Refineries Limited (Established 1958).

It is currently India’s largest company by sales with a turnover of Rs. 1832040 millions (US $ 41 billion) and profits of Rs. 49150 millions (US $ 1.10 billion) for fiscal 2005.

Subject is also the highest ranked Indian company in the prestigious Fortune ‘Global 500’ listing, having moved up 17 places to the153rd position this year based on fiscal 2005 performance. It is also the 21st largest petroleum company in the world and the # 1 petroleum trading company among the National Oil Companies in the Asia-Pacific region.

India’s Downstream Major

Indian Oil and its subsidiaries account for 47% petroleum products market share among public sector oil companies, 41% national refining capacity and 51% downstream product pipeline capacity.

For the year 2005-06, the Indian Oil group sold 54.6 million tones of petroleum products, including 2.09 million tones through exports.

The Indian Oil Group of companies owns and operates 10 of India’s 18 refineries with a combined refining capacity of 54.20 million tones per annum (1.1 million barrels per day). These include two refineries of subsidiary Chennai Petroleum Corporation Limited (CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited (BRPL).

The Company’s cross-country crude oil and product pipelines network spanning over 9000 km meets the vital energy needs of the country.

To maintain its competitive edge and leadership status, Indian Oil is investing Rs. 244000 millions (US $ 5.5 billion) during the X Plan period (2002-07) in integration and diversification projects, besides refining and pipeline capacity augmentation, product quality upgradation and expansion of marketing infrastructure.

Network Beyond Compare

As the flagship national oil company in the downstream sector, Indian Oil, together with its marketing subsidiary, IBP Company Limited reaches precious petroleum products to millions of people everyday through a countrywide network of over 30000 sales points. They are backed for supplies by 183 bulk storage terminals and depots, 97 aviation fuel stations and 88 Indane LPG bottling plants.

Indian Oil, together with IBP, operates the largest and the widest network of petrol & diesel stations in the country, numbering over 15000. It reaches Indane cooking gas to the doorsteps of 43.4 million customers in 2,546 markets through a network of 4,856 Indane distributors.

Indian Oil’s ISO-9002 certified Aviation Service commands a 64% market share in aviation fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines and the Indian Defense Services. Indian Oil also enjoys a dominant share of the bulk consumer business, encoding that of railways, state transport undertakings, industrial, agricultural and marine sectors.

Indian Oil’s world class R&D Centre is perhaps Asia’s finest. Besides pioneering work in lubricants formulation, refinery processes, pipeline transportation and alternative fuels such as bio-diesel, the Centre is also the nodal agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel in the country.

Synergy through Subsidiaries

A wholly-owned subsidiary, Indian Oil Technologies Limited, is commercializing the innovations and technologies developed by Indian Oil’s R&D Centre, across the globe.

The merger of the wholly owned subsidiary, Indian Oil Blending Limited, is complete. Merger of IBP Company Limited, the marketing subsidiary, with the parent company is nearing completion. Merger of Bongaigaon Refinery & Petrochemicals Limited with the parent company is in process.

Widening Horizons

Indian Oil has set its sight to reach US$ 60 billion revenues by the year 2011-12 from current earnings of US$ 41 billion. The road map to attain this milestone has been laid through vertical integration – forward into petrochemicals and backwards into exploration & production of oil – and diversification into natural gas business, besides globalization of its marketing operations.

In petrochemicals, Indian Oil is currently implementing a master plan envisaging Rs. 300000 millions (US$ 6.8 billion) investment by the year 2011-12. As part of this, a world-scale Linear Alkyl Benzene plant at Gujarat Refinery and an integrated Paraxylene/Purified Terephthalic Acid plant at Panipat are already in operation, while a Naphtha Cracker with downstream polymer units is coming up at Panipat. Indian Oil also proposes to develop a similar refinery-cum-petrochemicals complex at Paradip on the east coast to strengthen its presence in the sector.

In exploration & production (E&P), Indian Oil has bagged nine blocks in the first three rounds of bids under NELP (New Exploration Licensing Policy) in India, in consortium with other companies. It has also acquired participating interest in on-shore blocks in Assam and Arunachal Pradesh region. Overseas ventures include two gas blocks in Sirte Basin of Libya, the Farsi Exploration Block in Iran and onshore farm-in arrangements in Gabon. The Corporation is also exploring opportunities to acquire a suitable medium-sized E&P company to quickly consolidate its upstream portfolio.

In natural gas business, Indian Oil is already marketing 1.43 million tones of gas per annum. To augment its business in the sector, it has signed an MOU for import of 1.75 million tones of LNG per annum with Iran for supplies from the year 2009 onwards. The Corporation has also proposed partnering Petropars, a subsidiary of National Iranian Oil Company, in jointly developing gas blocks in the North Pars fields of Iran.

To emerge as a transnational energy major, Indian Oil has set up subsidiaries in Sri Lanka, Mauritius and UAE and is simultaneously scouting new opportunities in energy markets in Asia and Africa.

Indian Oil subsidiary, Lanka IOC Limited, operates 160 retail outlets commanding a 22% market share. Its oil terminal at Trincomalee is also Sri Lanka’s largest petroleum storage facility. Lanka IOC occupies the No. 2 spot among the top 50 listed companies operating in Sri Lanka and is ranked No. 5 among the leading brands in the island nation.

Indian Oil (Mauritius) Limited has also garnered a 14% market share, which include aviation fuelling and bunkering business. It operates a modern petroleum bulk storage terminal at Mer Rouge port, besides five petrol & diesel stations. Besides expansion of retail network, a modern product-testing laboratory is being set up in Mauritius. It has grown to occupy the 25th place among the top 100 companies in Mauritius in less than 30 months after commencement of operations there.

The Corporation’s UAE subsidiary, IOC Middle East FZE, oversees business expansion in the Middle East.

The Path of Growth

1958
Indian Refineries Limited was formed with Mr. Feroze Gandhi as Chairman.

1959
Indian Oil Company Limited was established on 30^th June 1959 with Mr. S. Nijalingappa as the first Chairman.

1960
Agreement for supply of SKO and HSD was signed with the then USSR. M.V: "Uzhgorod" carrying the first parcel of 11390 tonnes of HSD docked at Pir Pau Jetty in Mumbai on 17^th August 1960.

1962
Guwahati Refinery was inaugurated by Pt. Jawaharlal Nehru.

Construction of Barauni Refinery commenced.

1963
Foundation was laid for Gujarat Refinery

Indian Oil Blending Limited (a 50:50 Joint Venture between Indian Oil and Mobil) was formed.

1964
subject was born on 1^st September, 1964 with the merger of Indian Refineries Limited with Indian Oil Company Limited.

Barauni Refinery was commissioned.

The first petroleum product pipeline from Guwahati to Siliguri (GSPL) was commissioned.

1965
Gujarat Refinery was inaugurated by Dr. S. Radhakrishnan, the then President of India.

Barauni-Kanpur Pipeline (BKPL) and Koyali- Ahmedabad product Pipeline (KAPL) commissioned. Indian Oil People maintained the vital supply of Petroleum products to Defense in 1965 War.

1966
The first long-term agreement was signed for harmonious employee relations.

1967
Haldia Baraurii Pipeline (HBPL) was commissioned.

Bitumen and Marine Bunker business began.

1968
Techno-economic studies for Haldia-Calcutta, Bombay-Pune and Bombay-Manmad Pipelines submitted to the Government.

1969
Indian Oil undertook the marketing of Madras Refinery products.

1970
Indian Oil acquired 60% majority shares of IBP.

The same was offloaded in favour of the President of India under a Directive in 1972.

1971
Dealership/reservation was extended to war widows, disabled Defense personnel, Freedom Fighters, etc. after 1971 War.

1972
R&D Centre was established at Faridabad.

SERVO, the first indigenous lubricant was launched.

1973
Foundation-stone of Mathura Refinery was laid by Mrs. Indira Gandhi, the then Prime Minister of India.

1974
Indian Oil Blending Limited (IOBL) became the wholly owned subsidiary of Indian Oil.

Marketing Division attained a new watershed with a market participation of 64.2%.

1975
Haldia Refinery was commissioned.

Multipurpose Distribution Centres were introduced at 132 Retail Outlets pioneering rural convenience.

1976
Private petroleum companies nationalized.

Burmah Shell became BPC.

1977
R&D Centre launched Nutan wick stove.

1978
Phase-wise commissioning of Salaya-Mathura Crude Oil Pipeline (SMPL) began.

1979
Barauni Refinery and Bongaigaon Refinery and Petrochemicals Limited (BRPL) affected by Assam agitation.

1980
The second Oil Shock was witnessed as a result of Iranian Revolution. Crude Oil price flared to a new high of $32 per barrel.

1981
Digboi Refmery and Assam Oil Company's (AOC) marketing operations were vested in Indian Oil. It became Assam Oil Division (AOD) of Indian Oil.

1982
Mathura Refinery was commissioned.

Mathura-Jalandhar Pipeline (MJPL) was commissioned.

1983
Massive augmentation of LPG storage and distribution facilities were undertaken.

Proposal for the 6 MMTPA Refinery at Karnal was submitted at an estimated cost of Rs. 11810 millions.

Memorandum of Collaboration (MOC) / Memorandum of Understanding (MoU)

Overseas

Ø MOC with Marubeni Corporation, Japan in the areas of refining, petrochemicals, power and pipelines.

Ø MOC with Petronas, Malaysia for petrochemicals, refining, blending, LNG, training, R&D opportunities and LPG import.

Ø MoU with Premier Oil Pacific Limited for development and production projects in Northeastern states of India.

Ø MoU with ELF, ANTAR France for manufacture and marketing of fuel additives and R & D assistance.

Ø MOC with Enbridge International Inc., Alberta, Canada to explore methods and avenues of cooperation in pipeline design, construction management, operation & maintenance techniques, software development, training and consultancy in India and abroad.

Ø MoU with Petronas Carigali for development / production projects

Ø MoU with Pertamina, Indonesia for collaboration in hydrocarbon sector.

Ø MoU between Government of India and Government of Mauritius for Indian Oil entry into downstream petroleum sector in Mauritius.

Ø MoU with Ceylon Petroleum Corporation for Indian Oil entry into downstream petroleum sector in Sri Lanka.

In India

Ø MoU with GAIL for marketing tie-up for transfer of LPG through pipeline from Kandla / Jamnagar to Loni

Ø MoU with NTPC for petrofuel based power projects.

Ø MoU with Indo Rama Synthetics Limited for supply tie-up of PTA from the proposed PX / PTA plant at Panipat.

Ø Joint Statement of Intent with Hindustan Lever for supply tie-up of LAB from the proposed LAB plant at Gujarat refinery.

Ø MoU entered in May 2003 with National Iranian Company for cooperation in Hydrocarbon Sector..

Ø MoU with GAIL for development of City Gas Distribution Project in Agra, Lucknow & Barielly in May 2004.

Ø MOC between Indian Oil and EIL for “Products upgrading project in Tehran & Tabriz refineries of NIOEC, Iran”.

OVERSEAS OPERATIONS

Ø Export of bulk petroleum products to Sri Lanka & Bangladesh.

Ø SERVO marketing in Nepal, Malaysia, Bangladesh, Mauritius, Sri Lanka, Dubai, etc.

Ø Lube blending and marketing in Middle East and East Africa.

Ø Export of Bitumen to Bangladesh, Myanmar and China.

Ø Management of oil terminal at Ndola, Zambia and aviation stations in Bhutan and Maldives.

Ø Specialized training imparted to international oil companies like Petronas of Malaysia, Qatar General Oil

Ø Company, KNPC of Kenya and CPC of Sri Lanka.

Ø Secondment of manpower for commissioning of ENOC’s refinery at Dubai.

Ø Technical Services help provided to countries like Dubai and Trinidad.

Ø Consultancy Services in Algeria.

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.40.67
UK Pound	1	Rs.82.03
Euro	1	Rs.62.54

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		81

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/normal.	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

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