MIRA INFORM REPORT

Report Date :

25.10.2011

IDENTIFICATION DETAILS

Name :	SARADA AGRO OILS LIMITED (w.e.f. 28^th February, 1996)
Formerly Known As :	SARADA AGRO OILS PRIVATE LIMITED
Registered Office :	655, Satamrai, Gaganpahad, Hyderabad, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	21.07.1992
Com. Reg. No.:	01-14547
Capital Investment / Paid-up Capital :	Rs.50.000 Millions
CIN No.: [Company Identification No.]	U15143AP1992PLC014547
TAN No.: [Tax Deduction & Collection Account No.]	HYDS04949A/ HYDS04571A
PAN No.: [Permanent Account No.]	AAECS6453N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Edible Oils and Vanaspathi.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 710000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

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

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

Registered Office :	655, Satamrai, Gaganpahad, Hyderabad, Andhra Pradesh, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	sarda_office@sify.com sarda_office@yahoo.co.in

DIRECTORS

(AS ON 16.09.2010)

Name :

Mr. Jagdish Prasad Sarda

Designation :

Managing Director

Address :

6-3-900/1/1, Rajbhavan Road, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India

Date of Birth/Age :

27.04.1963

Date of Appointment :

12.07.1992

DIN No.:

00504726

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U15143AP1992PLC014547	SARDA AGRO OILS LIMITED	Managing director	21-07-92	21-07-92	Active	NO
2	U01403AP2010PTC070904	BRS REFINERIES PRIVATE LIMITED	Director	20-10-10	20-10-10	Active	NO
3	U15132AP2009PTC065266	CARE REFINERIES PRIVATE LIMITED	Additional director	04-02-11	04-02-11	Active	NO

Name :

Mr. Ashok Kumar Sarda

Designation :

Director

Address :

SY. No.655, Satamrai Village, Shamshabad, RR District, Hyderabad – 500002, Andhra Pradesh, India

Date of Birth/Age :

15.10.1971

Date of Appointment :

21.07.1992

DIN No.:

00504689

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U15143AP1992PLC014547	SARDA AGRO OILS LIMITED	Director	21-07-92	21-07-92	-	Active	NO
2	U15132AP2009PTC065266	CARE REFINERIES PRIVATE LIMITED	Director	01-10-09	01-10-09	03-02-11	Active	NO
3	U01403AP2010PTC070904	BRS REFINERIES PRIVATE LIMITED	Director	20-10-10	20-10-10	-	Active	NO

Name :

Mr. Manohar Lal Sarda

Designation :

Director

Address :

21-3-140, Tagarikanaka, Hyderabad – 500001, Andhra Pradesh, India

Date of Birth/Age :

10.05.1965

Date of Appointment :

21.07.1992

DIN No.:

00537880

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U15143AP1992PLC014547	SARDA AGRO OILS LIMITED	Director	21-07-92	21-07-92	-	Active	NO
2	U15143CT2008PTC020773	S.S. SOLVENT OILS EXTRACTIONS PRIVATE LIMITED	Director	24-07-08	24-07-08	30-08-11	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 16.09.2010)

Names of Shareholders	No. of Shares
Jagdish Prasad Sarda	1861801
Manoharlal Sarda	740161
Ashok Sarda	951460
Santosh Sarda	313333
Sunita Sarda	300000
Shoba Sarda	306667
Vijay Sarda	89058
Kushal Sarda	50000
Akash Sarda	50000
Bhadrivishal Sarda	180853
Vimala devi Sarda	90000
Vittaldas Somani	66667
Total	5000000

(AS ON 16.09.2010)

Equity Shares Break-up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Edible Oils and Vanaspathi.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	· Model Co-Operative Urban Bank Limited Hyderabad – 500073, Andhra Pradesh, India · Tamilnad Mercantile Bank Limited 15-2-696, First Floor, Siddam Bazar, Kishangunj, Hyderabad – 500012, Andhra Pradesh, India

Banking Relations :	--
Financial Institute :	· 3i Infotech Trusteeship Services Limited 3^rd to 6^th Floor, International Infotechj Park, Tower No.5, Vashi Railway Station Complex, Vashi, New Mumbai – 400703, Maharashtra, India
Auditors :
Name :	C. V. Ramchadra Murthy Chartered Accountant
Address :	Flat No.101, Durga Appointment, Rajbhavan Road, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India
PAN No.:	ACIPC2638L

CAPITAL STRUCTURE

(AS ON 16.09.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		50.000	50.000	50.000
2] Share Application Money		5.000	5.000	0.000
3] Reserves & Surplus		122.502	97.751	64.566
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		177.502	152.751	114.566
LOAN FUNDS
1] Secured Loans		91.092	90.760	55.612
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		91.092	90.760	55.612
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
Others Advances		140.000	140.000	0.000
TOTAL		408.594	383.511	170.178
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		84.475	105.875	101.759
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	202.268	153.902	243.156
	Sundry Debtors	330.542	250.811	267.855
	Cash & Bank Balances	9.756	11.103	6.952
	Other Current Assets	220.645	130.117	87.914
	Loans & Advances	0.000	0.000	0.000
Total Current Assets		763.211	545.933	605.877
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor
	Other Current Liabilities	478.177	318.195	538.110
	Provisions
Total Current Liabilities		478.177	318.195	538.110
Net Current Assets		285.034	227.738	67.767
MISCELLANEOUS EXPENSES		39.085	49.898	0.652
TOTAL		408.594	383.511	170.178

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	3526.659	4437.896	4855.717
		Other Income	21.057	12.219	16.875
		TOTAL (A)	3547.716	4450.115	4872.592
Less	EXPENSES
		Raw Materials Consumed	3453.955	4162.053	4721.950
		Other Expenditure	8.383	189.878	98.034
		TOTAL (B)	3462.338	4351.931	4819.984
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		85.378	98.184	52.608
Less	FINANCIAL EXPENSES (D)		45.449	50.467	18.333
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		39.929	47.717	34.275
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.933	12.438	6.054
	PROFIT BEFORE TAX (E-F) (G)		27.996	35.279	28.221
Less	TAX (H)		3.244	2.094	7.472
	PROFIT AFTER TAX (G-H) (I)		24.752	33.185	20.749
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		90.251	57.066	36.317
	BALANCE CARRIED TO THE B/S		115.002	90.251	57.066
	Earnings Per Share (Rs.)		4.95	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.70	0.75	0.43
Net Profit Margin (PBT/Sales)	(%)	0.79	0.79	0.58
Return on Total Assets (PBT/Total Assets}	(%)	3.30	5.41	3.99
Return on Investment (ROI) (PBT/Networth)		0.16	0.23	0.25
Debt Equity Ratio (Total Liability/Networth)		3.21	2.68	5.18
Current Ratio (Current Asset/Current Liability)		1.60	1.72	1.13

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS, INDUSTRY AND FUTURE OUTLOOK.

The Company has logged a turnover of Rs.3526.600 Millions. (Previous year Rs.4440.000 Millions)

On the Malaysian Derivatives Exchange (BMD), crude palm oil will trade between 2600 and 2,800 Malaysian ringgit (MYR) a tonne during March-July 2010, and will trade in a higher range of 2800-3200 MYR a tonne in the second half of the year. For the short-term palm market has comfortable cushion of stocks for the next few months. In the second half of the year (post-July), it is expected tightness in the market with major origins Malaysia and Indonesia facing the threat of production shortfalls, the dollar to weaken and South American soya crop flow to peak. This would propel palm higher, Crude oil may trade in the $80-95 a barrel range for most of the year and investment money will come back to commodities.

On other vegetable oils, we feel that the spread between crude palm oil and soya oil will remain very narrow in 2010-11 (currently $72 a tonne) and soya oil will trade in the next few months around the current levels of $850-900 f.0.b (free-on-board) South America.

It is forecasted that incremental supply of edible oil in 2010-11 to be 4.6 million tons while incremental demand is seen at 6 million tons. In next marketing season incremental demand is likely to be 5.5 million tons while incremental supply will be 6.8 million tons. At present, it looks like for the third year in a row, Incremental Supply will not match Incremental Demand, There are two interesting possibilities. Higher prices and Secondly it may be that palm oil production can rise more than they have expected. It is too early to forecast S and D's for 2011-12 accurately. There is potential for Supply to exceed Demand but not by much - prices cannot fall much and oilseeds will need to fight for acres against other crops by means of price competitiveness. They expect Indian vegetable oil imports in current year around 9 million tons which will further expand in 2011-12 to 9.3-9.5 million tons.

The Company is importing high quality of vegetable oils from Asia Pacific and South American countries and the dollar becoming weak may improve the bottom tine a little. The company is in business for the last 18 years and has generated tremendous goodwill for quality of production and maintaining excellent deliveries in time. With this strength can expect better results to come in the coming years.

FORM 8:

Corporate identity number of the company	U15143AP1992PLC014547
Name of the company	SARADA AGRO OILS LIMITED
Address of the registered office or of the principal place of business in India of the company	655, Satamrai, Gaganpahad, Hyderabad, Andhra Pradesh, India sarada_office@sify.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80014274
Type of charge	Immovable Property Book Debts Movable Property (Not being pledge)
Particular of charge holder	Tamilnad Mercantile Bank Limited 15-2-696, First Floor, Siddiamber Bazaar, Kishan Gunj, Hyderabad – 500012, Andhra Pradesh, India hyderabad@tnmbonline.com
Nature of instrument creating charge	Demand Promissory Note Supplemental Memorandum of Deposit of title deeds Agreement for Letter of Credit Deed of Hypothecation of Machinery, accessories and tools
Date of instrument Creating the charge	25.08.2010
Amount secured by the charge	Rs.470.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: NA Terms of Repayment: ADHOC FLC (DP/DA 90 days from the date of negotiation)/ FCL Margin: 30% Extent and Operation of the charge: The charge operates as a security for the due repayment of credit facility availed by the Company together with the payment of interest and any other charges, costs and expenses payable to or incurred by the Bank.
Particulars of the property charged	The existing primary, collateral securities, properties already offered/ mortgaged/ hypothecated/ liened also covers the revised/ renewed/ modified limits.
Particulars of the present modification	The existing limits of 410.000 Millions enhanced to 470.000 Millions as follows by way of Adhoc FLC of Rs.60.000 Millions. (Rs in Millions) Facility Existing Proposed Cash Credit 50.000 50.000 FLC/FCL 350.000 410.000 Cheque purchase 10.000 10.0.00 Total 410.000 470.000

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.50.07
UK Pound	1	Rs.79.16
Euro	1	Rs.69.04

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.