MIRA INFORM REPORT

Report Date :

04.11.2011

IDENTIFICATION DETAILS

Name :	SAVITA OIL TECHNOLOGIES LIMITED (w.e.f 24.08.2009)
Formerly Known As :	Savita Chemicals Ltd.
Registered Office :	66/67, Nariman Bhavan, Nariman Point, Mumbai-400021, Maharashtra.
Country :	India.
Financials (as on) :	31.03.2011
Date of Incorporation :	19.07.1961
Com. Reg. No.:	11-012066
Capital Investment/ Paid-up Capital:	Rs.146.056 millions
CIN No.: [Company Identification No.]	L24100MH1961PLC012066
TAN No.: [Tax Deduction & Collection Account No.]	MUMS37352A
PAN No.: [Permanent Account No.]	AAACS7934A
Legal Form :	A Public Limited Liability company. The company’s shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of speciailty oil like white oils and transformer oils.
No. of Employees:	Approximately 2000

RATING & COMMENTS

MIRA’s Rating :

A (66)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 15000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered Good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Corporate and Marketing Office 1 :	66 / 67, Nariman Bhaavan, Nriman Point, Mumbai-400021, Maharashtra, India.
Tel. No.:	91-22-22883061/2/3/4 / 66246200 / 66246228
Fax No.:	91-22-22029364
E-Mail :	savitacorp@vsnl.com ucrege@savita.com
Website :	http://www.savita.com
Corporate and Marketing Office 2 :	Savita Oil Technologies Limited Refineries : · 17-A, Thane-Belapur Road, P.O. – Vashi, Navi Mumbai-400703, Maharahstra, India. · Plot No. 10/2, Kharadpada, P.O-Naroli-396235, Silvassa, Dadra Nagar Haveli, India.
E-Mail :	savitacorp@vsnl.com
Corporate and Marketing Office 3 :	Lubes Division, 74, Maker Chamber VI, Nariman Point, Mumbai-400021, Maharashtra, India.
Tel. No.:	91-22-22027452/22850092
E-Mail :	savitacorp@vsnl.com
Corporate and Marketing Office 4 :	Savita Polymers Limited Refineries · A-2/1, MIDC Industrial Estate, Mahad, District Raidgad-402301, Maharashtra, India. · 54-A, Piparia Industrial Estate, Silvassa-396230, Dadra Nagar Haveli, India.
E-Mail :	savitacorp@vsnl.com
Factory 1 :	17/17A, Thane Belapur Road, Turbhe, Navi Mumabai-400703, Maharashtra, India
Factory 2 :	Survey No. 10/2, Kharadpada, Post Naroli, Silvassa-396230, Dadra Nagar Haneli, India.
Central Region Branch :	190, Bharat Nagar, J. K. Road, P.O. Piplani, Bhopal-462021, Madhya Pradesh, India.
Tel. No.:	91-755-4280087
Fax No.:	91-755-2757987
E-Mail :	dsdhanak@savita.com
Eastern Region Branch :	209, Acharya Jagdish Chandra Bose Road, 144 Karmani Estate, 4^th Floor, Kolkata-700017, West bengal, India.
Tel. No.:	91-33-30249873/77
Fax No.:	91-33-22871872
E-Mail :	Savita_kolkata@vsnl.net
Southern Region Branch :	Plot No. 45, P and T Colony, Trimulgherry, Secunderabad-500015, Andhra Pradesh, India.
Tel. No.:	91-40-27741246
Fax No.:	91-40-27747880
E-Mail :	savita1999@bsnl.in jvkumar@savita.com
Northern Region Branch :	1004, Akash Deep, Barakhamba Road, New Delhi-110001, India.
Tel. No.:	91-11-23316577 / 23320425
Fax No.:	91-11-23312447
E-Mail :	sotldelhi@savita.com

DIRECTORS

(AS ON 31.03.2011)

Name :	Mr. Gautam N Mehra
Designation :	Managing Director, Chairman.
Qualification :	MBA and BA
Experience :	27 years
Name :	Mr. C. V. Alexander
Designation :	Whole-time Director
Qualification :	MA, L.L.B
Experience :	46 years
Name :	Mr. N. B. Karpe
Designation :	Non-Executive Independent Director
Qualification :	B.Com, L.L.B., F.C.A
Experience :	14 years
Name :	Mr. S. R. Pandit
Designation :	Non-Executive Independent Director
Qualification :	B.Com, F.C.A
Experience :	29 years
Name :	Mr. Harit a. Nagpal
Designation :	Non-Executive Independent Director

KEY EXECUTIVES

Name :	Mr. Uday Chandrakant Rege
Designation :	Company Secretary
Qualification :	B. Pharm., M.M.S., A.C.S.
Experience :	19 years
Name :	Mr. S. M. Dixit
Designation :	Chief Financial Officer
Qualification :	B.Com., A.C.A., A.I.C.W.A.

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 17.09.2011)

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	9585069	65.64
Bodies Corporate	866943	5.94
Sub Total	10452012	71.58
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	10452012	71.58
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1329732	9.11
Financial Institutions / Banks	876	0.01
Foreign Institutional Investors	361044	2.47
Sub Total	1691652	11.59
(2) Non-Institutions
Bodies Corporate	331512	2.27
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	1800478	12.33
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	324.013	2.22
Any Others (Specify)	2416	0.02
Trusts	2416	0.02
Sub Total	2458419	16.84
Total Public shareholding (B)	4150071	28.42
Total (A)+(B)	14602083	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	---	---
(2) Public	---	---
Sub Total
Total (A)+(B)+(C)	14602083	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of speciailty oil like white oils and transformer oils.

Products :

· Savonol

Liquid Paraffin

· Transol

Transformer Oil

· Savsol

Lubricants

· Savowax

Waxes

· Idemitsu

Automotive and Industrial Lubricants

· Speciality Wax Emulsion

For Leather finishings, Water based paints and Printing links

· Vitagel

Optic Fibre Cable Filling Compound

· Technol

White Oil

· Savogel

Petroleum Jellies

· Savofil / Savoflod

Cable Filling Compound

· Savox BW300

Emulsifiable (Oxidized) Polyethylene Wax

Product Description	Item Code No.
Lubricating Oils / Greases	27101980
Transformer Oils	27101990
Liquid Paraffins	27101990

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity per annum*	Installed Capacity per annum**	Actual Production
Tansformer Oils/ Liquid Paraffins and White Oils/ Lubricating Oils/ Greases and Other Specialities	KL/MT	NA	320000	254309
Others	MT	NA	5600	1
Wind Power (Electricity)***	MW	NA	43.15	8.13

Notes:

* Licensing not applicable

** Installed capacity is as certified by the Management of the Company on which the Auditors have relied.

*** Installed Wind Power capacity indicates rated capacity. Actual Wind Power generation (Plant load factor) in India is in the range of 17% to 25% of the rated capacity.

Production excludes processing for outside parties: Transformer Oil 310 KLs.

GENERAL INFORMATION

No. of Employees :

Approximately 2000

Bankers :

· State Bank of India

· Corporation Bank

· DBS Bank Limited

· ICICI Bank Limited

· IDBI Bank Limited

· Standard Chartered Bank

· Union Bank of India

Facilities :

(Rs. in millions)

Secured Loans	As on 31.03.2011	As on 31.03.2010
From Banks
i) Cash Credits *	0.000	48.289
ii) Foreign Currency Loans ** [Repayable within a year Rs.182.612 millions, (Previous Year Rs.30.206 millions)]	517.332	412.394
iii) Term Loan *** [Repayable within a year Rs.11.750 millions (Previous Year Rs.23.500 millions)]	11.750	35.250
Total	529.082	495.933

Notes :

*Secured by charge on fixed assets (except fixed assets of Wind Power Segment) and hypothecation of inventories and receivables.

** Foreign Currency Loans amounting to :

a) Rs.27.259 millions is secured by exclusive hypothecation of Wind Power Plants at

i) Gudhe Panchagani, District Sangli, Maharashtra and

ii) Panchapatta, District Ahmednagar, Maharashtra.

b) Rs 182.305 millions is secured by exclusive hypothecation of Wind Power Plants at

i) Rangapura Kavalu,

ii) Aidahalli Kavalu and

iii) Nayanakere Kavalu village, District Hassan, Karnataka.

c) Rs.174.268 millions is secured by exclusive hypothecation of Wind Power Plants at

i) Thadicherry village and

ii) Koduvilarpatti village, District Theni, Tamilnadu.

d) Rs.133.500 millions is secured by exclusive hypothecation of Wind Power Plants at Sadawaghapur, District Satara, Maharashtra.

*** Secured by exclusive hypothecation of Wind Power Plants at Bhirenwadi, District Sangli, Maharashtra.

(Rs. in millions)

Unsecured Loans	As on 31.03.2011	As on 31.03.2010
Sales Tax Deferment Loan (Interest Free) [Repayable within one year Rs.3.912 millions (Previous Year Rs. Nil)]	162.445	162.445
Total	162.445	162.445

Banking Relations :	--
Auditors :
Name :	G. M. Kapadia and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India.
Enterprises :	· Basant Lok Trading Company · Chemi Pharmex Private Limited · Madhu Trust · Savita Plymers Private Limited

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Share	Rs.10/- each	Rs.300.000 millions
	Total		Rs.300.000 millions

Issued, Subscribed & Paid-up Capital :

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

Of the above:

(i) 2,500 (Previous Year 2,500) Equity Shares were allotted as fully paid-up pursuant to a scheme of amalgamation for a consideration other than cash.

(ii) 1,15,70,833 (Previous Year 1,15,70,833) 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		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		146.056	146.056	146.056
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3805.534	3051.617	2443.194
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3951.590	3197.673	2589.250
LOAN FUNDS
1] Secured Loans		529.082	495.933	361.959
2] Unsecured Loans		162.445	162.445	163.470
TOTAL BORROWING		691.527	658.378	525.429
DEFERRED TAX LIABILITIES		349.716	346.715	298.715
TOTAL		4992.833	4202.766	3413.394
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1972.221	1861.305	1447.585
Capital work-in-progress		50.608	29.172	45.395
INVESTMENT		490.712	461.423	640.611
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2991.523	2293.434	1774.965
	Sundry Debtors	3531.896	2797.488	2472.184
	Cash & Bank Balances	315.434	203.128	259.714
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	412.484	532.942	427.731
Total Current Assets		7251.337	5826.992	4934.594
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3993.402	3342.353	3334.477
	Other Current Liabilities	377.266	321.949	234.075
	Provisions	401.377	311.824	86.239
Total Current Liabilities		4772.045	3976.126	3654.791
Net Current Assets		2479.292	1850.866	1279.803
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4992.833	4202.766	3413.394

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income from Operations	15475.076	11780.139	11507.583
		Other Income	112.672	89.181	100.358
		TOTAL (A)	15587.748	11869.320	11607.941
Less	EXPENSES
		Materials	11672.713	8713.105	9901.085
		Personnel	229.606	189.271	127.543
		Others	1759.703	1432.158	1081.173
		TOTAL (B)	13662.022	10334.534	11109.801
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1925.726	1534.786	498.140
Less	INTEREST (D)		68.932	46.738	48.694
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1856.794	1488.048	449.446
Less/ Add	DEPRECIATION/ AMORTISATION (F)		252.958	203.088	189.407
	PROFIT BEFORE TAX (E-F) (G)		1603.836	1284.960	260.039
Less	TAX (H)		510.501	421.124	87.700
	PROFIT AFTER TAX (G-H) (I)		1093.335	863.836	172.339
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1904.870	1386.444	1317.026
Less	APPROPRIATIONS
		Transfer to General Reserve	110.000	90.000	17.500
		Dividend	292.042	219.031	73.010
		Tax on Dividend	47.376	36.379	12.408
	BALANCE CARRIED TO THE B/S		2548.787	1904.870	1386.447
	EARNINGS IN FOREIGN CURRENCY
		Export Sales	2103.017	1676.298	1688.187
		Freight and Insurance	87.306	61.985	59.896
	TOTAL EARNINGS		2190.323	1738.283	1748.083
	IMPORTS
		Raw Materials	9067.370	7356.174	6815.657
		Capital Goods	3.120	0.000	2.003
	TOTAL IMPORTS		9070.490	7356.174	6817.660
	Earnings Per Share (Rs.)		74.88	59.16	11.80

QUARTERLY RESULTS

PARTICULARS	30.06.2010
Type	1^st Quarter
Sales Turnover	4364.830
Total Expenditure	3866.510
PBIDT (Excl OI)	498.320
Other Income	22.050
Operating Profit	520.370
Interest	17.600
Exceptional Items	0.000
PBDT	502.770
Depreciation	56.880
Profit Before Tax	445.890
Tax	147.280
Provisions and Contingencies	0.000
Reported PAT	298.610
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	298.610

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.01	7.27	1.48
Net Profit Margin (PBT/Sales)	(%)	10.36	10.91	2.26
Return on Total Assets (PBT/Total Assets}	(%)	17.39	16.71	4.07
Return on Investment (ROI) (PBT/Networth)		0.41	0.40	0.10
Debt Equity Ratio (Total Liability/Networth)		1.38	1.45	1.61
Current Ratio (Current Asset/Current Liability)		1.52	1.46	1.35

LOCAL AGENCY FURTHER INFORMATION

COMPLETION OF GOLDEN JUBILEE

On 19th July 2011 the Company will be completing 50 glorious years since its formation. The Company was incorporated as a Private Limited Company by late Shri D. C. Mehra and his son late Shri N. K. Mehra on 19th July 1961. The journey of the last 50 years has been both, challenging and rewarding. It is with a sense of great pride that we can reflect on the progress made by the Company over the last five decades. From being a small manufacturer of White Oils in the 1960s, the Company has now grown to become the leading manufacturer of Specialty Oils (White Oils and Transformer Oils) not only in India but across the Asian continent. The Company went Public in 1994 and over the years has created multiple drivers for growth by adding new businesses to its portfolio like the Lubricating Oils Division in 1994 and the Renewable Energy Division in 1999

.

The Directors acknowledge the invaluable contribution of the employees; both past and present, in bringing The Company to its current position of strength and success. The Directors also recognize and appreciate the important role played by all its business associates, in this mutually beneficial journey. The Directors are confident that they shall continue to receive the same co-operation from all its stakeholders in the future as well.

OPERATIONS

The Company’s sales turnover touched a new high of Rs.17199.3000 millions against Rs.13120.000 millions in the year 2009-10 resulting in a growth of 31%. However, the sales volume marginally increased to 256837 KLs/MTs during 2010-11 from 2,54,767 KLs/MTs achieved in 2009-10. The net profit of the Company increased to Rs.1093.300 millions as against Rs.863.900 millions for the previous year, recording an increase of 27%.

During the year, the Crude Oil prices kept increasing steadily albeit with a reduced degree of volatility. As could be expected, Base Oil prices also moved up in tandem with global Crude Oil prices. However, the consistent demand for the Company’s products enabled the Company to post record turnover and profits in the year.

The Company did not add any Wind Power capacity during the financial year 2010-11 due to lack of sites with good wind regimes. Hence, the total installed capacity in Wind Power sector of the Company remained at 43.15 MW as in the previous financial year.

During the financial year 2010-11, The Company’s Wind Power Plants situated in the states of Maharashtra, Karnataka and Tamil Nadu generated Rs.71.220 million units during the year against Rs.63.950 million units generated in the previous year.

The Company has also got 9.45 MW of its Wind Energy Plants approved by UNFCCC in its CDM regime. The Company has so far received a total of 52,193 Carbon Emmission Reductions from the above project.

MANAGEMENT DISCUSSION AND ANALYSIS

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

A. INDUSTRY STRUCTURE AND DEVELOPMENT

I. Petroleum Products

This Sector consists of Transformer Oils, White Oils/Liquid Paraffins and Lubricating Oils for The Company. The main raw materials for all these products are the Base Oils which are a refined fraction derived from Crude Oil. These Base Oils are predominantly sourced by The Company from the international markets and to some extent from the domestic market.

The demand for Transformer Oils in India is generated and sustained by the overall development and growth of the power generation and transmission infrastructure within the country. The market for cosmetics, pharmaceuticals and personal care products decides the demand for Liquid Paraffins and White Oils.

The Automotive, Industrial and Marine Sectors primarily constitute the Indian lubricant industry. The general industrial and economic conditions determine the demand for the lubricant products in these Sectors.

The Petroleum Products market is fiercely competitive because of the presence of many domestic and multinational companies.

The world economic recovery which started in the year 2009-10 continued in the year 2010-11 and was more prominent in the Indian context. In India most sectors of the economy including industrial production, automotive and industrial sales etc. showed robust growth in demand, though high inflation has been a dampner.

II. Wind Power

The major source of power generation in India has always been coal with some share from gas and hydro based power generation. Power sector is the core area that developing countries like India need to concentrate on for their economic growth. India is, therefore, focusing on sustainable power supply from renewable energy sources which are set to playa critical role in addressing the growing energy security and climate challenges. Apart from addressing India’s issue of climate change and global warming, renewable energy sources also offer a hedge against future fossil fuel price hike and volatility. Of all the renewable sources of energy, wind energy has had an exponential growth in India. Technological maturity, a proven installed base, lower set-up and running costs are the key factors for the dominance of wind technology in the renewable energy mix.

In 2010-11, the Indian wind sector experienced its strongest annual growth ever. During this year, India added wind power installed capacity of more than 2,350 MW taking the cumulative installed capacity to 14,157 MW.

B. OPPORTUNITIES AND THREATS

I. Petroleum Products

The higher than expected growth, observed in both developed and emerging economies during last year, has raised hopes for a sustained global recovery. However, the fear of emerging high Crude Oil prices is the biggest threat to this recovery. Some of other risks to global growth remain in the form of weak sovereign balance sheets, frail real estate markets in the Euro area and geopolitical uncertainties in advanced economies.

Indian economy continued on the recovery path with a broad based growth spread across various sectors. GDP growth was higher at 8.5% in the year 2010-11 as compared to 8% in the year 2009-10. However, continuing high inflation is a real cause of concern for the Indian economy. Nonetheless, the Indian economy has good growth potential on a sustainable basis moving forward.

II. Wind Power

Potential for wind power in India has been increased to 48.5 GW by Ministry of New and Renewable Energy (MNRE). The World Institute for Sustainable Energy, India (WISE) considers that with improvement in technology, larger capacity turbines, increase in the hub height of the wind turbines, greater land availability and expanded resource exploitation, Management Discussion and Analysis 23 current generation of wind turbines could yield a potential onshore wind power capacity of 65 GW–100 GW. Possibility of third party sale under open access policy will give a substantial upside from the combination of power sale and Renewable Energy Certificates (RECs) which can be traded through power exchanges pan-India.

New entrants have forayed into the wind turbine manufacturing segment. This is set to change the market dynamics and will lead to higher efficiencies, new technologies and lower prices; all this taken together will aid the market development.

The challenges related to power evacuation and grid connectivity, accurate wind potential assessment, non-availability of windy sites, infrastructure issues affecting large wind turbine transportation and local issues are hampering the growth of wind energy sector.

C. SEGMENT WISE PERFORMANCE

I. Petroleum Products

The sales volume in the Petroleum Products segment was at 2,55,035 KLs/MTs during the financial year 2010-11 against 2,49,105 KLs/MTs in the previous year, resulting in revenue of Rs,16853.100 millions in the financial year 2010-11 against Rs.12705.100 millions in the previous year.

II. Wind Power

The Company did not find it advisable to add any new wind power capacity during the financial year 2010-11 due to lack of good investment opportunities. Hence, the total installed capacity in Wind Power Sector of The Company remains at 43.15 MW.

During the financial year 2010-11, The Company’s Wind Power Plants situated in the states of Maharashtra, Karnataka and Tamil Nadu generated Rs.71.220 million units in the year against 63.95 million units generated in the previous year.

During the financial year 2010-11, United Nations Framework Convention on Climate Change (UNFCCC) issued 3,304Certified Emission Reduction units (CERs) to The Company’s 3 MW Wind Power Project at Satara, Maharashtra.

Also APX VCS Registry issued 81,520 Voluntary Carbon Units (VCUs) to The Company’s 24.4 MW Wind Power Projects under Voluntary Carbon Standard (VCS) program during the financial year 2010-11.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

(Rs. in millions)

Particulars	As on 31.03.2011	As on 31.03.2010
a) Letter of Credit	626.456	261.192
b) Guarantees / Bonds	179.297	148.604
c) Corporate Guarantee	240.000	240.000
d) Disputed Demands
i) Excise and Customs	159.254	127.041
ii) Sales Tax	60.041	60.693
iii) Income Tax	63.711	2.435
iv) Others	5.194	5.194
Total	1333.953	845.159

FIXED ASSETS:

Tangible Asserts

· Freehold Land

· Leasehold Land

· Buildings

· Wind Power Plants

· Plant and Machinery

· Furniture and Fixtures

· Office Equipments

· Vehicles

Intangible Assets

· Software Licenses

BUSINESS DESCRIPTION:

Subject, formerly Savita Chemicals Limited, is an India-based company. The segments of the Company are petroleum products and wind power. Its petroleum products include Transformer Oils, White Oils/Liquid Paraffins and Lubricating Oils. During the fiscal year ended March 31, 2010 (fiscal 2010), the Company’s Wind Power Plants situated in the states of Maharashtra, Karnataka and Tamilnadu generated 64.0 MU against 55.4 MU. For the fiscal year ended 31 March 2010, Subject’s revenues increased 2% to RS11.87B. Net income totaled Rs.863.800 millions, up from Rs.172.300 millions. Revenues reflect an increase in income from petroleum products, higher revenue from wind power business divisions and increased revenue from domestic geographic divisions. Net income also reflects a decrease in materials cost, a fall in interest expenses and improved operating margin.

MANAGEMENT:

Biography of Directors

1. Mr. Gautam N. Mehra

Title: Executive Chaiman of the Board and Managind Director

Function: Chairman

Education : MBA, University of California, Berkeley
BE , Punjab Agricultural University, Ludhia

Mr. Gautam N. Mehra is Executive Chairman of the Board and Managing Director of Savitha Chemicals Technologies Limited. His Qualification includes B.E. (Chem.), Punjab Univ. (Chandigarh) M.B.A., Univ. of California (Berkeley). He has 27 years experience. He served as Marketing Executive of Mehra Trading and Investment Company Private. Limited.

2. Mr. C. V. Alexander

Title: Whole-Time Director

Function: Director / Board Member

Mr. C. V. Alexander serves as Whole-time Director of Savitha Chemicals Technologies Limited. He is a M.A. L.L.B. He has over 46 years of experience. He also holds directorships in Kurla Investments and Trading Co. Private. Limited and Savita Polymers Limited.

3. Mr. N. B. Karpe

Title: Non Executive Independent Director

Function: Director / Board Member

Mr. N. B. Karpe serves as Non-Executive Independent Director of Savitha Chemicals Technologies Limited. He is a B. Com., L.L.B.(Gen), F.C.A. He has over 14 years in profession, over 12 years in employment. He also holds directorships in CA (India) Technologies Private. Limited. , ABN Amro Asset Management (India) Limited., CA Satyam ASP Private. Limited., Aptech Limited., Cendura Software Private. Limited.

4. Mr. S. N. Mehra

Title: Non Executive Independent Director

Function: Director / Board Member

5. Mr. Harit A. Nagpal

Title: Non Executive Independent Director

Function: Director / Board Member

6. Mr. S. R. Pandit

Title: Non Executive Independent Director

Function: Director / Board Member

Mr. S. R. Pandit serves as Non-Executive Independent Director of Savitha Chemicals Technologies Limited. He is a B.Com, F.C.A. He has over 29 years in profession. He also holds directorships in Induslnd Media and Communications Limited

UNAUDITED FINANCIAL RESULTS FOR THE NINE MONTHS ENDED 30^th JUNE, 2011

(Rs. in millions)

Particulars	Quarter ended
	30.06.2011
Net Income from Operations	4324.900
Other Operating Income	39.933
Total Income From Operations	4364.833
Expenditure
a) (Increase) / Decrease in Inventory	(211.315)
b) Consumption of Raw Material	3468.248
c) Trading Purchase	72.560
d) Staff Cost	63.044
e) Depreciation	56.876
f) Other Expenditure	473.981
Total	3923.394
Profit from Operations before Other Income and Interest	441.439
Other Income	22.050
Profit before Interest	463.489
Interest	17.595
Profit From Ordinary Activities after tax	445.894
Tax Expenses -Current tax Deferred \tax Provision no longer required	160.00 (12.716) --
Net Profit From Ordinary Activities after tax	298.610
Paid – up Equity Share Capital	146.021
Reserves excluding Revaluation Reserves	---
Basic and Diluted EPS before Extraordinary items Basic and Diluted EPS before Extraordinary items	2.045 2.045
Public Shareholding
Number of Equity Shares	4150071
Percentage of Shareholding	2.842
Promoter and Promoter Group’s shareholding pledged
Pledged / Encumbered Number of Shares	Nil
Non-encumbered Number of Shares	10452012
Percentage of shares (as a % of the total on shareholding of Promoter an Promoter Group )	100.00
Percentage of Share (as a % of the total on shareholding of Promoter an Promoter Group )	71.58

Notes:

1.    Previous quarter’s / year’s figures have been regrouped / rearranged wherever necessary to conform to those of current quarter / year classification.

2.    The Statutory Auditors have carried out a limited review of the financial results for the quarter ended 30th June 2011.

3.    The above unaudited financial results (provisional) were reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on Saturday, 30^th July 2011.

4. Number of investors Complaints :

a) Pending at the beginning of the quarter - Nil

b) Received during the quarter - 04

c) Disposed off during the quarter - 04

d) Pending unresolved at the end of the quarter - Nil

SEGMENT WISE REVENUE RESULTS AND CAPITAL EMPLOYED

(Rs. in millions)

Particulars	Quarter ended
	30.06.2011
Segment Reserve
Petroleum Products	4286.314
Wind Power	92.751
Other Unallocated	7.818
Net Sales / Income from Operations	4386.883
Segment Results
Profit Before Tax interest from each Segment
Petroleum Products	441.412
Wind Power	38.738
Total	480.150
Less:
i. Interest	17.595
ii. Other Un-allocated expenditure	16.661
Net of Unallocated expenditure	34.256
Total Profit/ (Loss) before Tax	445.894
Capital Employed
(Segment Assets – Segment Liabilities)
Petroleum Products	3772.038
Wind Power	767.892
Other Unallocated	(289.730)
Total	4250.200

Notes:

Previous quarter’s / year’s figures have been regrouped / rearranged wherever necessary to conform to those of current quarter / year classification

SIGNIFICANT DEVELOPMENTS

Savita Oil Technologies Limited Recommends Dividend

May 16, 2011

Savita Oil Technologies Limited announced that the Board of Directors of the Company at its meeting held on May 15, 2011, have recommended dividend at 200%, i.e., INR20 per Equity Share (face value INR10 Each) for the year ended March 31, 2011 which includes a special 50th Anniversary Dividend of 50% i.e. INR5 per share.

Idemitsu terminates technical collaboration agreement with Savita Oil Technologies

Accord Fintech (India)
15 October 2011

[What follows is the full text of the news story.]

India, Oct. 15 -- Idemitsu Lube India (Idemitsu) has terminated the technical collaboration agreement with Savita Oil Technologies for Idemitsu Products vide a notice dated October 13, 2011 as per the provisions contained therein. This termination is to take effect after 180 days from the date of the notice. However, the company has the right to manufacture and market the Idemitsu Products for a further period of 3 years at its discretion from the expiry of the said 180 days. The technical collaboration agreement for Genuine Products with Idemitsu continues to remain in force. Earlier, Savita Oil Technologies had entered into a technical collaboration agreement for Idemitsu Products with ldemitsu Lube India, New Delhi, a subsidiary of Idemitsu Kosan of Japan on November 01, 2006 for manufacturing and marketing of Idemitsu Products. Further, the termination of this agreement would only marginally impact the sales volume of the company. This impact would not exceed two percent of the total sales volume as appearing in the audited accounts of the company for the financial year 2010-11. Savita Oil Technologies is engaged in the business of manufacturing and distributing varied range of petrochemicals. Its product portfolio includes liquid paraffin, transformer oil, white oil, petroleum jellies, cable filling compound, emulsifiable polyethylene wax, automotive and industrial lubricants amongst others. The products manufactured find industrial applications in pharmaceuticals, cosmetic, plastic, agriculture and veterinary. Published by HT Syndication with permission from Accord Fintech

Termination of Technical Collaboration Agreement for Idemitsu Products

Accord Fintech (India)
14 October 2011

[What follows is the full text of the news story.]

India, Oct. 14 -- Savita Oil Technologies Limited has informed BSE regarding termination of Technical Collaboration Agreement for Idemitsu Products Published by HT Syndication with permission from ACCORD FINTECH BSE.

Fixes Book Closure of Dividend and AGM

Accord Fintech (India)
05 August 2011

[What follows is the full text of the news story.]

India, Aug. 05 -- Savita Oil Technologies Limited has informed BSE that the Register of Members and Share Transfer Books of the Company will remain closed from September 12, 2011 to September 17, 2011 (both days inclusive) for the purpose of Payment of Dividends and 50th Annual General Meeting (AGM) of the Company to be held on September 17, 2011. Published by HT Syndication with permission from ACCORD FINTECH BSE.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.37
UK Pound	1	Rs.78.49
Euro	1	Rs.67.59

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	6
--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		66

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.