MIRA INFORM REPORT

Report Date :

25.10.2011

IDENTIFICATION DETAILS

Name :	VIMAL OIL AND FOODS LIMITED
Registered Office :	4^th Floor, Heritage, Near The Grand Bhagwati, Sarkhej Gandhinagar Highway, Ahmedabad – 380 054, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	14.05.1992
Com. Reg. No.:	04-17626
Capital Investment / Paid-up Capital :	Rs.255.500 Millions
CIN No.: [Company Identification No.]	L15400GJ1992PLC017626
TAN No.: [Tax Deduction & Collection Account No.]	AHMV00816E
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer, Exporter and Supplier in various endeavors such as edible oil and foods, paints, dairy products, chemicals, minerals, tiles, etc.
No. of Employees :	800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 3100000
Status :	Good
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine 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 :	4^th Floor, Heritage, Near The Grand Bhagwati, Sarkhej Gandhinagar Highway, Ahmedabad – 380 054, Gujarat, India
Tel. No.:	91-79-26841851 / 52 / 53 / 54
Fax No.:	91-79-26841850
E-Mail :	investor@vimaloil.com ahd@vimaloil.com sec.vimal@yahoo.co.in secretarial@vimalgroup.com mail@vimaloil.com
Website :	http://www.vimaloil.com
Corporate Office / Factory :	At: Village Hanumant Heduva, Near Palavasna Railway Crossing, Highway, Mehsana – 384 002, Gujarat, India
Tel. No.:	91-2762-225700 / 225058
Fax No.:	91-2762-225835
E-Mail :	mail@vimaloil.com

DIRECTORS

(AS ON 31.03.2011)

Name :	Mr. Jayesh C Patel
Designation :	Chairman and Managing Director
Name :	Mr. Mahendrabhai V Patel
Designation :	Director
Name :	Mr. Harnarayan J Patel
Designation :	Director
Name :	Mr. Mukesh N. Patel
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Fagesh R. Soni
Designation :	Company Secretary
Audit Committee:	Mr. Mahendra V. Patel Mr. Mukesh N. Patel Mr. Harnarayan J. Patel
Remuneration Committee:	Mr. Mahendra V. Patel Mr. Mukesh N. Patel Mr. Harnarayan J. Patel
Shareholders/ Investors Grievance Committee:	Mr. Mahendra V. Patel Mr. Mukesh N. Patel Mr. Jayesh C. Patel

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	7,692,500	72.91
Bodies Corporate	220,000	2.09
Sub Total	7,912,500	75.00
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	7,912,500	75.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	800	0.01
Sub Total	800	0.01
(2) Non-Institutions
Bodies Corporate	140,914	1.34
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	911,541	8.64
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1,558,355	14.77
Any Others (Specify)	25,890	0.25
Clearing Members	3,658	0.03
Non Resident Indians	22,232	0.21
Sub Total	2,636,700	24.99
Total Public shareholding (B)	2,637,500	25.00
Total (A)+(B)	10,550,000	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)	10,550,000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Supplier in various endeavors such as edible oil and foods, paints, dairy products, chemicals, minerals, tiles, etc.

Products :

Products Description	Item Code No.
Rap Seed Oil	15141003
Rap Seed DOC	23064002
Cotton Seed Oil	120190

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Licensed Capacity (M.T.)	Installed Capacity (M.T.)	Actual Production (M.T.)
Refinery *
Own Production	NA	75000	90316
O/s Job-work	NA	NA	10690
Solvent Extraction	NA	60000
Oil	NA	NA	3907
De-oil cake	NA	NA	32639
Oil Mill Section	NA	60000
Oil Expeller	NA	NA	2369
Oil Cake	NA	NA	5696
Powder Plant **	NA	3000	NA
Table Margarine
Own Production	NA	13500	1089
O/s Job-work	NA	NA	2095
Fractionation Plant **	NA	120000	NA
Sunflower Plant**	NA	60000	NA

* Includes Production and Packed for sale.

** Given on rent.

Note: Plant Installed Capacity is as certified by the Management of the Company.

GENERAL INFORMATION

No. of Employees :

800 (Approximately)

Bankers :

· Bank of India

· Bank of Baroda

· Dena Bank

· IDBI Bank

· Kotak Mahindra Bank Limited

· ICICI Bank Limited

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Term Loan / Corporate Loan
Bank of India - Term Loan	9.100	14.300
Bank of India - Corporate Loan	68.750	93.750
Bank of Baroda - Corporate Loan	50.149	70.000
WORKING CAPITAL LOANS
Bank of India	864.671	558.350
Bank of Baroda	367.470	179.090
Dena Bank	141.320	71.753
IDBI Bank	1.262	26.524
VEHICLE LOANS
Kotak Mahindra Bank Limited	11.536	17.242
ICICI Bank Limited	0.000	1.633
Total	1514.258	1032.642
NOTE: Term Loan is secured by Hypothecation of Wind Mill to Bank of India. Corporate Loans are Secured by pari passu charge over the specific fixed assets to the Bank of India and Bank of Baroda. Working Capital Loans are secured by hypothecation of Current Assets to Bank of India Consortium. The above Term Loans and Working capital Loans are further secured by First Equitable Mortgage over Land and Building situated at Heduva Hanumant, Mehsana and at Kalyanpur, Jamnagar and Personal Guarantee of Managing Director and Promoters. Vehicle Loan from Kotak Mahindra Bank Limited and ICICI Bank Limited are secured against Hypothecation of Vehicles to respective bank.
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Directors and Promoters	39.980	150.000
Dealers / Distributors Deposit	0.235	1.385
Total	40.215	151.385

Banking Relations :	--
Auditors :
Name :	R. R. S and Associates Chartered Accountants
Address :	Ahmedabad, Gujarat, India
Enterprises over which key management personnel and their relative have substantial interests :	· Vimal Dairy Limited · Vimal Energy Private Limited · Vim Coats · Swastik Ceracon India Limited · Vinay Corporation · Gladder Ceramics Limited · Canon Capital and Finance Limited · Canon Commodity Markets Limited

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Shares	Rs.10/- each	Rs.180.000 Millions
15000000	Preference Shares	Rs.10/- each	Rs.150.000 Millions
	Total		Rs.330.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10550000	Equity Shares	Rs.10/- each	Rs.105.500 Millions
5000000	6% Preference Shares	Rs.10/- each	Rs.50.000 Millions
10000000	8% preference Shares	Rs.10/- each	Rs.100.000 Millions
	Total		Rs.255.500 Millions

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		255.500	195.500	195.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		507.848	194.705	162.351
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		763.348	390.205	357.851
LOAN FUNDS
1] Secured Loans		1514.258	1032.642	655.322
2] Unsecured Loans		40.215	151.385	90.985
TOTAL BORROWING		1554.473	1184.027	746.307
DEFERRED TAX LIABILITIES		48.948	47.329	46.037
TOTAL		2366.769	1621.561	1150.195
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		334.577	324.523	300.237
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	584.646	420.720	320.793
	Sundry Debtors	2654.660	1473.086	925.003
	Cash & Bank Balances	204.910	252.713	180.545
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	87.351	94.920	88.562
Total Current Assets		3531.567	2241.439	1514.903
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1440.252	916.389	642.408
	Other Current Liabilities	14.099	2.115	2.782
	Provisions	45.024	25.867	19.755
Total Current Liabilities		1499.375	944.401	664.945
Net Current Assets		2032.192	1297.038	849.968
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2366.769	1621.561	1150.195

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	11395.931	7345.697	6231.649
		Other Income	2.226	1.763	6.261
		TOTAL (A)	11398.157	7347.460	6237.910
Less	EXPENSES
		Increase/ (Decrease) in Closing Stock	(231.963)	4.976	30.456
		Materials and Manufacturing Expenses	11208.439	7028.805	6000.205
		Payments to for employees	21.976	19.193	17.674
		Administrative and Selling expenses	110.463	72.204	50.382
		TOTAL (B)	11108.915	7125.178	6098.717
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		289.242	222.282	139.193
Less	FINANCIAL EXPENSES (D)		113.888	128.372	80.063
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		175.354	93.910	59.130
Less/ Add	DEPRECIATION/ AMORTISATION (F)		24.686	21.306	16.474
	PROFIT BEFORE TAX (E-F) (G)		150.668	72.604	42.656
Less	TAX (H)		47.205	19.396	14.420
	PROFIT AFTER TAX (G-H) (I)		103.463	53.208	28.236
Less/ Add	Prior Period Adjustment		0.000	0.000	0.047
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		112.347	84.994	77.095
Less	APPROPRIATIONS
		Transfer to General Reserve	5.000	5.000	5.000
		Dividend	26.825	17.826	13.150
		Tax on Dividend	4.455	3.029	2.234
	BALANCE CARRIED TO THE B/S		179.530	112.347	84.994
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	239.775	174.137	194.180
	TOTAL EARNINGS		239.775	174.137	194.180
	IMPORTS
		Raw Materials	2424.799	1617.362	1233.82
		Capital Goods	7.854	0.000	0.000
	TOTAL IMPORTS		2432.653	1617.362	1233.882
	Earnings Per Share (Rs.)		9.81	11.69	6.21

QUARTERLY RESULTS

PARTICULARS	30.06.2011
Type	1^st Quarter
Net Sales	3516.200
Total Expenditure	3430.920
PBIDT (Excl OI)	85.280
Other Income	0.000
Operating Profit	85.280
Interest	34.640
Exceptional Items	0.000
PBDT	50.640
Depreciation	6.480
Profit Before Tax	44.160
Tax	10.200
Provisions and contingencies	0.000
Profit After Tax	33.960
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	33.960

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.91	0.72	0.45
Net Profit Margin (PBT/Sales)	(%)	1.32	0.99	0.68
Return on Total Assets (PBT/Total Assets}	(%)	3.90	2.83	2.35
Return on Investment (ROI) (PBT/Networth)		0.20	0.19	0.12
Debt Equity Ratio (Total Liability/Networth)		4.00	5.45	3.94
Current Ratio (Current Asset/Current Liability)		2.36	2.37	2.28

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

The Sales including other income for the financial year were Rs.11398.157 Millions as against Rs.7344.360 Millions which were recorded for the previous financial year.

The total export sales for the financial year under review were Rs.424.402 Millions as against Rs.296.576 Millions for the previous financial year. The Profit before tax was Rs.150.668 Millions and the profit after tax was Rs.103.463 Millions for the financial year as against Rs.72.604 Millions and Rs.53.208 Millions respectively for the previous financial year.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT 

OVERVIEW:

The world economy is now again showing signs of financial crisis and the stock markets of U.S.A. and Europe have fallen down sharply in the recent past. However the Government of India is positive and has opined that there would not be much of turbulence in the India Growth Story because of the crisis in U.S.A and Europe. The Reserve Bank of India has also projected a downside in the economic growth of India from 8.5% to 8%. However in the coming time it would be clear as to what would be the impact on India looking at the negative signals coming from U.S.A and Europe.

OPPORTUNITIES AND THREATS:

In the light of the financial turmoil in the developed countries and subsequent impact in India and more specifically in the Commodity prices, the Company has taken steps to strengthen its position and seek out opportunities in adversity. The approach has been on containing costs and growing brands. The Company has been taking measures to keep its brands relevant to the customers and also ensuring that they remain competitively priced. It is also exploring all possible avenues to reduce costs of inputs and raw materials without compromising on the quality of the product.

Competitions from global players remain a matter of concern and a probable threat; which needs to be addressed. The global impact on the pricing of the commodity is also a matter of concern and a threat as the markets turn highly volatile in a very short span of time, which also needs to be addressed.

SEGMENT ANALYSIS AND REVIEW:

Integrated Oil Division:

The Sales of oil division of the Company has increased by 55.42% as compared to previous year. The operating profit of this division has increased by 39.92% as compared to previous year.

Wind Mill Division:

The Company has installed three wind mills having capacity of 1.425 MB. The segment result of this division has decreased from Rs.9.400 Millions to Rs.4.300 Millions.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has installed ERP software for coordination and controlling the operation at the factory, Head Office, Registered Office and all other depo’s and distribution centers. This helps Company to check / verify the stores / Accounting / Distribution and Management information system on day to day basis.

Internal Control Systems are implemented to

· Safeguard the Company’s assets from loss or damage

· Keep constant check on cost structure and process loss

· To monitor the finished goods inventories and debtors.

· Provide for adequate financial and accounting controls and implement standard accounting standards

· Maintain proper accounting records and statutory compliances

The systematic implementation of Internal Control Systems and policies has resulted in the use of funds in the most efficient and appropriate manner. All this has been implemented in every area commencing from raw materials to finished products.

FUTURE OUTLOOK:

The future edible oil industry is by and large dependent upon the increasing consuming class with better lifestyle and availability of oilseeds. Per capita consumption of edible oils in India is one of the lowest in the world at present. Overall Indian Edible oil market is fourth largest in the world after USA, China and Brazil.

The future outlook of Edible oil industry looks good and the consumption of Edible oil is going to increase. The Company is also focusing on expanding the number and variety of products offered to customers across categories based upon focused research and consumer feedback. Also the focus is on enhancing the distribution network.

The focus of the Company is to make available its product at each and every center and thereby increase its Market share.

CONTINGENT LIABILITIES:

Particulars	31.03.2011	31.03.2010
	(Rs. In Millions)
Bank guarantee given in favor of GAIL	0.650	0.650
Sales Tax Demand under Sales Tax Laws for the accounting year 2001-02, 2002-03, 2003-04 - (Note i)	61.822	61.822
Sales Tax Demand under Rajasthan Sales Tax Act, 1994 for the year 2002-03 - Note i	13.948	13.948
Demand under Income Tax Act, 1961 for the accounting year 2008-09	6.700	0.000

NOTE:

i) As against the same, the Company has paid under protest of Rs.40.650 Millions and shown as Loans and Advances.

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED ON 30TH JUNE, 2011

(RS. IN MILLIONS)

Sr. No.	Particulars	3 Months ended on 30/06/2011 (Unaudited)
1	(a) Net Sales/Income from Operations	3516.202
	(b) Other Operative income	0.000
2	Expenditure
	a) Increase/ Decrease in Stock in trade and work in progress	56.440
	b) Consumption of raw material	2659.880
	c) Purchase of traded goods	584.637
	d) Employee cost	6.172
	e) Depreciation	6.480
	f) Other expenditure	123.794
	g) Total	3437.403
3	Profit from Operation before other income, Interest and Exceptional item(1-2)	78.799
4	Other income	0.000
5	Profit before Interest & Exceptional item (3+4)	78.799
6	Interest	34.637
7	Profit after Interest but before Exceptional items(5-6)	44.162
8	Exceptional item	0.000
9	Profit (+)/Loss (-) From Ordinary Activities before tax (7+8)	44.162
10	Tax expense	10.200
11	Net Profit (+)/Loss (-) From Ordinary Activities after tax (9-10)	33.962
12	Extra Ordinary item	0.000
13	Net Profit(+) / Loss(-) for the period (11-12)	33.962
14	Paid-up equity share capital (Rs.10 each)	105.500
15	Reserves excluding revaluation reserves as per Balance Sheet of previous accounting year to be given in column (5)	-
16	Earning Per Share
	a) Basic and Diluted EPS before extraordinary items for the period, for the year to date and for the previous year to date & for the previous year (Not to be Annualised)	3.22
	b) Basic and diluted EPS after Extraordinary items for the period, for the year to date and for the previous year (not to be annualized)	3.22
17	Aggregate of Non- Promoter Shareholding
	(No. of Shares)	2637500
	(% of Shareholdings)	25.00%
18	Promoter and Promoter Group Shareholding
	a) Pledged / Encumbered
	-- No. of Shares	NIL
	% of Shares (as a % of total shareholding of Promoter and Promoter Group)	NIL
	% of shares (as a total Share capital of the Company)	NIL
	b) Non-encumbered
	-- No. of shares	7912500
	% of shares (as a % of the total shareholding of Promoter and Promoter Group)	100%
	% of shares (as a % of the total share capital of the Company )	75.00%

SEGEMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED ON 30TH JUNE, 2011 UNDER

(RS. IN MILLIONS)

Sr. No.	Particulars	3 Months ended on 30/06/2011 (Unaudited)
1	Segment Revenue
	a) Integrated Oil Division	3508.986
	b) Powder Mfg. Division	2.700
	c) Wind Mill	3.167
	d) Other Unallocable	1.349
	TOTAL	3516.202
	Less: Inter Segment Revenue	0.000
	Net Sales/Income from Operations	3516.202
2	Segment Results
	a) Integrated Oil Division	73.388
	b) Powder Mfg. Division	2.230
	c) Wind Mill	1.832
	d) Other Unallocable	1.349
	TOTAL	78.799
	Less:
	i) Interest	34.637
	ii) Other Un-allocable expenditure net of un-allocable income	0.000
	Total Profit Before Tax	44.162
3	Capital Employed
	(Segment Assets-Segment Liabilities)
	a) Integrated Oil Division	705.870
	b) Powder Mfg. Division	13.437
	c) Wind Mill	54.531
	d) Other Unallocable	8.437
	TOTAL	782.275

NOTE:

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

· Investors' complaints:

Pending at the beginning of the quarter (01.04.2011) NIL

Received during the quarter 1

Disposed of during the quarter 1

Pending at the end of quarter (30.06.2011) NIL

· The above results were reviewed by the Audit Committee and subsequently approved by the Board of Directors at its meeting held on August 12, 2011.

· Figures of previous period have been regrouped / rearranged where necessary.

FIXED ASSETS:

· Land

· Land Site Development

· Road Construction

· Factory Building

· Office Building

· Plant and Machinery

· Lab Equipment

· Electrification

· Computer

· Furniture and Fixture

· Office equipment

· Vehicle

BUSINESS DESCRIPTION

Subject is an India-based company. The Company has three segments: Integrated Oil Division, Powder Plant and Wind Mill. Its product range includes oils of cottonseed, groundnut, soya, mustard and palm. Subject is the flagship company of the Vimal Group. For the six months ended 30 September 2010, Subject revenues increased 55% to RS4.69B. Net income increased 91% to RS48.9M. Revenues reflect an increase in income from integrated oil division and higher income from wind mill division. Net income also reflects an increase in operating profit margins. Company is an Indian based company. company is the flagship company of Vimal Group.

BOARD OF DIRECTOR

Mr. Mahendra V. Patel

Mr. Mahendra V. Patel is an Independent Non-Executive Director of company. He is Chartered Accountant. He has wide experience in the field of finance, account and taxation matters.

Mr. Mukesh N. Patel

Mr. Mukesh N. Patel is an Independent Non-Executive Director of company. He is a B.Com. Graduate. He is having an experience in the field of accounts and was looking for day to day accounts of a public limited company.

Mr. Harnarayan J. Patel

Mr. Harnarayan J. Patel is the Independent Non-Executive Director of company. He is Chartered Accountant. He has wide experience in the field of finance, account and Taxation matter. He holds Directorships in Canon Capital and Finance Limited, Canon Commodity Markets Limited.

NEWS:

VIMAL OIL AND FOODS SURGE ON ICRA ASSIGNING LBBB- AND A3 RATINGS TO ITS BANK FACILITIES

18 April 2011

India, April 18 -- Vimal Oils and Foods is currently trading at Rs.85.00, up by 0.50 points or 0.59% from its previous closing of Rs.84.50 on the BSE. The scrip opened at Rs.83.35 and has touched a high and low of Rs.88.00 and Rs.83.35 respectively. So far 1,006 shares were traded on the counter. The BSE group 'B' stock of face value Rs.10 has touched a 52 week high of Rs.92.80 on 13-Apr-2011 and a 52 week low of Rs.37.55 on 07-May-2010.Last one week high and low of the scrip stood at Rs.92.80 and Rs.64.00 respectively. The current market cap of the company is Rs.886.200 Millions. The promoters holding in the company stood at 75.00% while Institutions and Non-Institutions held 0.01% and 24.99% respectively. Rating agency, ICRA has assigned an LBBB- rating to the Rs.13.000 Millions term loans and the Rs.1045.800 Millions fund based facilities of Vimal Oil and Foods (VOFL). The rating agency has also assigned an A3 rating to the Rs.1800.000 Millions short term non fund based facilities of the company. The outlook on the long term rating is stable. The rating agency has combined the operational and financial risk profiles of the company and the group company Gujarat Spices and Oilseed Growers Cooperative Union (GUJOIL) to arrive at the ratings. Moreover, these companies are planned to be merged in the near term subject to regulatory approvals. Vimal Oil and Foods is primarily engaged in the refining and marketing of different types of edible oils. It commenced operations at its refinery with a 50 TPD capacity in 1993 and has increased its capacity over the years to 250 TPD in 2010. The company's product range includes refined oils of cottonseed, sunflower, groundnut, soya, mustard and palm.

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	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.