MIRA INFORM REPORT

Report Date :

25.02.2012

IDENTIFICATION DETAILS

Name :	ESSAR OILFIELD SERVICES INDIA LIMITED (w.e.f. 14.05.2009)
Formerly Known As :	ESSAR OILFIELD SERVICES INDIA PRIVATE LIMITED
Registered Office :	Essar House, 11 Keshavrao Khadye Marg, Mahalaxmi, Mumbai – 400034, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	14.08.2006
Com. Reg. No.:	11-163779
Capital Investment / Paid-up Capital :	Rs.6579.869 Millions
CIN No.: [Company Identification No.]	U93090MH2006PLC163779
TAN No.: [Tax Deduction & Collection Account No.]	MUME06578F/ MUME07799B
PAN No.: [Permanent Account No.]	AABCE6378H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Service Provider of Drilling for Oil and Gas.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 23000000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a part of Essar Group. It is an established company having moderate track. There appears huge accumulated losses recorded by the company profitability is under pressure. However, trade relations are fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

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

INFORMATION PARTED BY (General Details)

Name :	Mr. Kaushik Das
Designation :	Finance Operator
Contact No.:	91-22-67335169
Date :	23.02.2012

LOCATIONS

Registered/ Office :	Essar House, 11 Keshavrao Khadye Marg, Mahalaxmi, Mumbai – 400034, Maharashtra, India
Tel. No.:	91-22-67335000/ 50011100/ 66601100
Fax No.:	91-22-67082183/ 66601809/ 23544312
E-Mail :	kaushik.das@essar.com corporatecommunications@essar.com habib.jan@essar.com sgiri@essar.com rnbansal@hotmail.com espll.secretarial@essar.com
Website :	http://www.essar.com
Location :	Owned
Corporate Office :	Equiox Business Park (Peninsula Techno Park), Off Bandra Kurla Complex, LBS Marg, Kurla (West), Mumbai – 400070, Maharashtra, India
Tel. No.:	91-22-67335000
Fax No.:	91-22-67082183
Branch Office :	Located at: · Ahmedabad · Chennai · Hazira · New Delhi · Vadinar · Visakhapatnam
Overseas Offices :	Located at: · Indonesia · China

DIRECTORS

(AS ON 06.09.2011)

Name :

Mr. Ramakrishnan Aduthurai Perumalkoil Ramachandran

Designation :

Director

Address :

Flat No.6-A, Siddhi Apartments, 15-A, Shankar Ghanekar Marg, Opposite IDBI Bank, Prabhadevi, Mumbai – 400028, Maharashtra, India

Date of Birth/Age :

07.02.1957

Date of Appointment :

14.05.2009

DIN No.:

00583765

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	U91990MH1979GAP021664	INDIAN NATIONAL SHIPOWNERS ASSOCIATION	Director	2/12/2004	2/12/2004	-	Active	NO
2	L85110GJ1975PLC054824	ESSAR PORTS LIMITED	Whole-time director	31/07/2006	31/07/2006	22/05/2011	Active	NO
3	U93090MH2006PLC163779	ESSAR OILFIELD SERVICES INDIA LIMITED	Director	14/05/2009	14/05/2009	-	Active	NO
4	U63000MH2010PLC199815	ADEL SHIPPING AND LOGISTICS LIMITED	Director	8/2/2010	8/2/2010	-	Active	NO
5	U61200GJ2010PLC060285	ESSAR SHIPPING LIMITED.	Managing director	23/05/2011	16/04/2010	-	Active	NO
6	U63000MH2004PLC149214	ESSAR LOGISTICS LIMITED	Director	6/9/2011	1/2/2011	-	Active	NO

Name :

Mr. Ram Nath Bansal

Designation :

Additional Director

Address :

B – 365, New Friends Colony, New Delhi – 110065, India

Date of Birth/Age :

15.07.1930

Date of Appointment :

01.03.2011

DIN No.:

00270908

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	L15421WB1952PLC020577	GOBIND SUGAR MILLS LIMITED	Director	23/07/1980	23/07/1980	31/01/2012	Active	NO
2	L85110GJ1975PLC054824	ESSAR PORTS LIMITED	Director	19/06/1987	19/06/1987	-	Active	NO
3	L14101UP1977PLC021546	ORIENT CERAMICS AND INDUSTRIES LIMITED	Director	8/3/1989	8/3/1989	-	Active	NO
4	L72900UP1986PLC008448	S MOBILITY LIMITED	Director	11/8/1992	11/8/1992	23/04/2010	Active	NO
5	L17110MH1882PLC000045	THE HINDOOSTAN SPINNING AND WEAVING MILLS LIMITED	Director	8/2/1995	8/2/1995	-	Amalgamated	NO
6	L74899DL1994PLC059950	PUSHPSONS INDUSTRIES LIMITED	Director	10/2/1995	10/2/1995	-	Active	NO
7	L34103TN1963PLC004987	JONAS WOODHEAD AND SONS (INDIA) LIMITED	Director	22/09/1995	22/09/1995	20/09/2008	Active	NO
8	L24124RJ1985PLC003293	CHAMBAL FERTILISERS AND CHEMICALS LIMITED	Director	11/5/1996	11/5/1996	-	Active	NO
9	U35111GJ1993FLC053434	VADINAR OIL TERMINAL LIMITED	Director	31/01/2006	31/01/2006	-	Active	NO
10	U63000MH2004PLC149214	ESSAR LOGISTICS LIMITED	Director	18/02/2008	18/02/2008	-	Active	NO
11	L26921GJ1985PLC008196	BELL CERAMICS LIMITED	Director	28/05/2011	24/11/2010	16/09/2011	Active	NO
12	U93090MH2006PLC163779	ESSAR OILFIELD SERVICES INDIA LIMITED	Additional director	1/3/2011	1/3/2011	-	Active	NO
13	U61200GJ2010PLC060285	ESSAR SHIPPING LIMITED.	Director	9/9/2011	23/05/2011	-	Active	NO
14	L17121MH1904PLC000195	HINDOOSTAN MILLS LIMITED	Director	15/09/2011	8/6/2011	-	Active	NO

Name :

Mr. Ankur Gupta

Designation :

Director

Address :

201, Amardeep N. S. Road, No.3, JVDP Scheme, Vile Parle, Mumbai – 400056, Maharashtra, India

Date of Birth/Age :

11.05.1966

Date of Appointment :

23.05.2011

DIN No.:

00331731

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	U72200MH2002PTC138240	PARADIGM GEOPHYSICAL (INDIA) PRIVATE LIMITED	Director	23/09/2005	23/09/2005	31/05/2010	Active	NO
2	L40108TN2006PLC061665	ORIENT GREEN POWER COMPANY LIMITED	Additional director	28/07/2009	28/07/2009	21/12/2009	Active	NO
3	U61200GJ2010PLC060285	ESSAR SHIPPING LIMITED.	Director	9/9/2011	23/05/2011	-	Active	NO
4	U93090MH2006PLC163779	ESSAR OILFIELD SERVICES INDIA LIMITED	Additional director	23/05/2011	23/05/2011	-	Active	NO

Name :

Mr. Shailesh Sawa

Designation :

Additional Director

Address :

53, Beach Towers, Tata Press Lane, Prabhadevi, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

24.07.1963

Date of Appointment :

20.10.2010

DIN No.:

03163208

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	L85110GJ1975PLC054824	ESSAR PORTS LIMITED	Whole-time director	9/9/2011	24/07/2010	-	Active	NO
2	U63000GJ2009PLC058496	ESSAR BULK TERMINAL PARADIP LIMITED	Director	5/9/2011	20/10/2010	-	Active	NO
3	U63032MH2007PLC176225	ESSAR BULK TERMINAL (SALAYA) LIMITED	Director	6/9/2011	20/10/2010	-	Active	NO
4	U63000MH2009PLC196857	ESSAR PARADIP TERMINALS LIMITED	Director	6/9/2011	20/10/2010	-	Active	NO
5	U63023GJ2009FLC056684	VADINAR PORTS AND TERMINALS LIMITED	Director	8/9/2011	20/10/2010	-	Active	NO
6	U63032MH2009PLC189497	ESSAR DREDGING LIMITED	Additional director	20/10/2010	20/10/2010	-	Active	NO
7	U93090MH2006PLC163779	ESSAR OILFIELD SERVICES INDIA LIMITED	Additional director	20/10/2010	20/10/2010	18/06/2011	Active	NO
8	U61200GJ2010PLC060285	ESSAR SHIPPING LIMITED.	Additional director	20/10/2010	20/10/2010	10/6/2011	Active	NO
9	U13100GJ2004PLC043477	ESSAR BULK TERMINAL LIMITED	Director	5/9/2011	26/10/2010	-	Active	NO
10	U35111GJ1993FLC053434	VADINAR OIL TERMINAL LIMITED	Director	8/9/2011	27/10/2010	-	Active	NO
11	U63000MH2004PLC149214	ESSAR LOGISTICS LIMITED	Additional director	27/10/2010	27/10/2010	23/05/2011	Active	NO

KEY EXECUTIVES

Name :	Mr. Kaushik Das
Designation :	Finance Operator

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 06.09.2011)

Names of Shareholders	No. of Shares
Essar Oilfield Service Limited, Mauritius Jointly with Ravi Vaidyanathan	10
Essar Oilfield Services limited, Mauritius jointly with Jagannathan Radhavan	10
Essar Oilfield Services limited, Mauritius jointly with Manoj Contractor	10
Essar Oilfield Services limited, Mauritius jointly with Raman Subramanian	10
Essar Oilfield Services limited, Mauritius jointly with Vikram Gupta	10
Essar Oilfield Services limited, Mauritius jointly with Manohar Kannangar	10
Essar Oilfield Services limited, Mauritius	657986805
Total	657986865

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Service Provider of Drilling for Oil and Gas.
Imports :
Products :	Machinery
Countries :	· China · Span · Oman · Japan

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· IDBI Bank

Mumbai, Maharashtra, India

· Central Bank of India

Corporate Finance Branch, MMO Building, 1^st Floor, M G Road, Mumbai – 400023, Maharashtra, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans banks secured	5876.900	3016.200
Rupee term loans financial institutions secured	648.100	358.800
Other debt secured	4180.000	4180.000
Total	10705.000	7555.000
NOTE: Rupee term loan from banks secured by charge on six land rigs and receivables thereon and corporate guarantee from Essar Shipping Limited - Rs.625.000 Millions Rupee term loan from banks secured by charge on Jack Up rigs and receivables thereon and corporate guarantees from Essar Shipping Limited - Rs.5251.900 Millions. Rupee term loan from financial institutions secured by charge on Jack Up rigs and receivables thereon and corporate guarantees from Essar Shipping Limited. Rupees term loan secured by charge on six land rigs.
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Other Debt Unsecured	381.000	84.000
Total	381.000	84.000
NOTE: Loans and Advances from Others

Banking Relations :	--
Financial Institution :	· IDBI Trusteeship Services Limited Asian Building, Group Floor, 17 R. Kamani Marg, Ballard Estate, Mumbai – 400001, Maharashtra, India
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :
Immediate Holding Company.	· Essar Oilfields Services Limited, Mauritius
Holding Companies :	· Essar Shipping and Logistics Limited, Cyprus · Essar Shipping Ports and Logistics Limited, India (till 30th September 2010) · Essar Shipping Limited ( w.e.f. 1st October 2010)
Ultimate Holding Company:	· Essar Global Limited, Cayman Island
Other related parties where there have been transactions:	· Aegis Limited · Essar Bulk Terminals Limited · Essar Oil Limited · Essar Projects (India) Limited · Essar Investments Limited · Essar Logistics Limited · Essar Infrastructure Services Limited · Essar Exploration and Production India Limited · Essar Information and Technology Limited · Essar House Limited · Essar Agrotech Limited · Futura Travels Limited · The Mobile Store

CAPITAL STRUCTURE

(AS ON 06.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
1400000000	Equity Share	Rs.10/- each	Rs.14000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
690485497	Equity Share	Rs.10/- each	Rs.6904.855 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
1400000000	Equity Share	Rs.10/- each	Rs.14000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
657986865	Equity Share	Rs.10/- each	Rs.6579.869 Millions

NOTE:

The above shares are being held by Essar Oilfields Services Limited, the holding company and its nominees. Of the above 49,634,314 no of shares have been issued for consideration other than cash.

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		6579.869	6579.869	0.500
2] Share Application Money		127.828	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(851.893)	(127.261)	(0.042)
NETWORTH		5855.804	6452.608	0.458
LOAN FUNDS
1] Secured Loans		10705.000	7555.000	0.000
2] Unsecured Loans		381.000	84.000	0.000
TOTAL BORROWING		11086.000	7639.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		16941.804	14091.608	0.458
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2222.698	2113.292	0.000
Capital work-in-progress		14721.069	11971.003	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.252	0.000	0.000
	Sundry Debtors	190.637	143.280	0.000
	Cash & Bank Balances	153.475	15.255	0.008
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	167.420	295.730	0.471
Total Current Assets		511.784	454.265	0.479
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	342.181	174.990	0.021
	Other Current Liabilities	183.646	292.362	0.000
	Provisions	6.162	2.750	0.000
Total Current Liabilities		531.989	470.102	0.021
Net Current Assets		(20.205)	(15.837)	0.458
MISCELLANEOUS EXPENSES		18.242	23.150	0.000
TOTAL		16941.804	14091.608	0.458

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	242.375	295.628	0.000
		Other Income	108.698	36.406	0.000
		TOTAL (A)	351.073	332.034	0.000
Less	EXPENSES
		Manufacturing Services Cost	291.682	42.843	0.000
		Administrative, Selling and Other Expenses	211.081	39.223	0.008
		TOTAL (B)	502.763	82.066	0.008
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(151.690)	249.949	(0.008)
Less	FINANCIAL EXPENSES (D)		311.254	195.268	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(462.944)	54.681	(0.008)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		261.689	181.900	0.000
	PROFIT BEFORE TAX (E-F) (G)		(724.633)	(127.219)	(0.008)
Less	TAX (H)		0.000	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		(724.633)	(127.219)	(0.008)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(127.261)	(0.042)	(0.034)
	BALANCE CARRIED TO THE B/S		(851.894)	(127.261)	(0.042)
	EARNINGS IN FOREIGN CURRENCY
		Charter Hire	58.407	176.627	0.000
		Other Income	69.677	36.383	0.000
	TOTAL EARNINGS		128.084	213.010	0.000
	IMPORTS
		Components and Spares Parts	22.526	0.781	0.000
	TOTAL IMPORTS		22.526	0.781	0.000
	Earnings Per Share (Rs.)		(1.10)	(1.22)	(0.17)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(298.97)	(43.03)	0.00
Net Profit Margin (PBT/Sales)	(%)	(206.41)	(38.32)	0.00
Return on Total Assets (PBT/Total Assets}	(%)	(26.50)	(1.97)	(1.67)
Return on Investment (ROI) (PBT/Networth)		(0.12)	(0.02)	(0.02)
Debt Equity Ratio (Total Liability/Networth)		1.98	1.25	0.05
Current Ratio (Current Asset/Current Liability)		0.96	0.97	22.81

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	-----
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last three years	No
Profitability for last three years	No
Reasons for variation <> 20%	-----
Estimation for coming financial year	No
Capital in the business	No
Details of sister concerns	-----
Major Suppliers	No
Major Customers	No
Payments Terms	Yes
Export/ Imports Details (If applicable)	Yes
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	No
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	No
Incorporation details is applicable	-----
Last Accounts filed at ROC	-----
Major Shareholders, if available	-----

INDUSTRY OUTLOOK:

The improving economic scene both in the U.S. as well as worldwide and the continued unrest in producing countries had been the main driver of the oil rally that saw the commodity zoom past the US$ 110 per barrel level last month.

But far too many factors weigh on oil prices from OPEC decisions and geostrategic tensions to the value of the U.S. dollar and seasonal variables to definitively size up each one of them for their respective impact on prices.

As per the latest release by the Energy Information Administration (EIA), crude supplies are higher than the year-earlier level and are above the upper limit of the average for this time of the year. This has led to demand concerns against a backdrop of persistently slow job growth. At the same time, global oil consumption is expected to grow at a healthy rate this yea r, buoyed by the continued demand strength in the major emerging market economies.

As such, crude oil’s near-term fundamentals remain patchy, to say the least. The long-term outlook for oil, however, remains favorable given the commodity’s constrained supply picture.

According to the EIA, world crude consumption grew by an estimated 2.2 million barrels per day in 2010, to 86.6 million barrels per day, which more than made up for the losses of the previous 2 years and surpassed the 2007 level of 86.3 million barrels per day (reached prior to the economic downturn).

The agency added that average global consumption growth over the next 2 years is likely to return to rates seen before the onset of the global downturn in 2008. EIA, in its Short- Term Energy Outlook, said that it expects the current economic recovery to contribute towards global oil demand growth of 1.4 million barrels per day in 2011 and 1.6 million barrels per day in 2012. However, the EIA ’s most recent demand growth forecast for 2011 is 120,000 barrels per day lower than in the earlier version, as the agency sees high crude prices cutting into consumption.

Recently, the Paris-based International Energy Agency (IEA), the energy-monitoring body of 28 industrialized countries, also trimmed its 2011 world oil demand outlook, citing the impact of persistent high prices and weaker economic growth for developed economies. IEA predicts that global oil demand would increase by 1.5% (or 1.3 million barrels per day) annually, reaching 89.2 million barrels a day in 2011 from last year’s 87.9 million barrels a day. The energy agency’s current estimate for 2011 is lower by 190,000 barrels a day from its last report, issued in April 2011.

However, the third major energy consultative body, the Organization of the Petroleum Exporting Countries (OPEC) the oil cartel that supplies around 40% of the world’s crude forecasted marginally stronger-than-previously-anticipated global oil demand in 2011. In its latest monthly oil report, OPEC said it expects world oil demand to grow by 1.4 million barrels per day in 20 11, reflecting an upward revision of 20,000 barrels a day over the previous assessment. The organization maintained that oil supplies remain balanced despite the political crisis in the North African and Arab countries, as its members and other producers pump more crude.

They expect crude oil to trade in the US$100- 110 per barrel range in the near future, supported by the continued tightening of world oil markets.

But this does not mean that they will not see any short-term pullbacks. On the whole, they expect oil prices in 20 11 to be higher than 2010 levels, but remain significantly below 2008 peak levels.

According to recent various analysis, total onshore drilling demand may reach a requirement for more than 7,300 active rigs drilling by 2015, with 52% of the demand coming from regions outside North America. In China, for example, the count is now greater than those in Canada and Russia. The global development of unconventional gas outside of North America will also have a profound effect on the global rig fleet toward the end of this decade. To meet the forecast production figures for European shale gas, for example, high-HP rig construction in the region would need to increase by over 1,000%.

STRONG DEMAND GROWTH IN INTERNATIONAL MARKET

Internationally, with strong demand growth expected over the next five years and beyond. Various analysis estimates that growth in rig demand will average in excess of 5% per annum over the next five years, with strong growth set to occur within key markets on each continent.

Mexico will become an increased focus within Latin America, due primarily to increased expenditure by Pemex on exploratory activities.

Although the mature environments of Libya and Egypt may witness a flat profile, other key MENA countries including Saudi Arabia, UAE and most notably Iraq are all expected to see substantial growth in the volume of rigs. In countries such as Algeria and Libya, the majority of this rig demand will be seen for horizontal and deviated drilling. Companies will seek to maintain production in maturing oil fields, and over 80% of new build demand will be for high HP rigs.

The analysis concludes that, by 2015, total onshore drilling demand may require more than 7,300 active rigs, and 52% of that demand will come from outside North America.

Growth of such scale inevitably requires an increased volume of rig construction – to increase the number of rigs currently available in international markets and to repair and replace existing fleets, which have suffered from a lack of investment over the last few decades.

Competition between manufacturers of rig components in frontier and international markets is strong. More than 100 companies now provide draw works worldwide, with many of these also providing mud pumps and top drives. Development outside North America arguably provides more opportunities for oilfield service companies than producers, due to the number of NOCs within frontier markets.

FLEET AGE, RESERVE MATURITY

Future demand within the rig market and the requirement to construct new fleet will be driven primarily by the age of rigs. The existing fleet is aging rapidly, the average rig being 20 years old. The maintenance and replacement of this fleet is necessary in order to ensure suitability for continued and, in many cases, accelerated drilling programs.

Older rigs are likely to continue to be used for the drilling of in-fill wells. Equally, the complexity and depth of wells is increasing on a global basis. The depth of wells is increasing in key operating environments, such as Russia and MENA, while the use of deviated drilling is increasing, particularly within prolific gas-producing basins. Between 2010 and 2015, the global fleet of higher- HP rigs is set to increase by 46%, compared with only 27% for lower-HP rigs over the same period.

New build activity has resumed in order to satisfy increased demand and to replace the aging fleet. Rig manufacturing capacity was put under pressure, and firms across the world prospered.

Recent activity has remained strong. While economic turmoil has put downward pressure on the number of rigs required to be working, this downturn has impacted to a lesser extent to previous cycles, and demand remains, relatively speaking, high.

CONTINGENT LIABILITIES

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Guarantee Given by Banks	33.745	20.000	0.000

FORM 8:

Corporate identity number of the company	U93090MH2006PLC163779
Name of the company	ESSAR OILFIELD SERVICES INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	Essar House, 11 K.K. Marg, Mahalaxmi, Mumbai – 400034, Maharashtra, India satish.rathi@essar.com
This form is for	Modification of charge
Charge identification number of the modified	10195851
Type of charge	· Uncalled share capital · Book debts · Movable property (not being pledge) · Goodwill · Trademark
Particular of charge holder	IDBI Trusteeship Services Limited Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai – 400001, Maharashtra, India itsl@idbitrustee.co.in
Nature of description of the instrument creating or modifying the charge	Letter of Intent of IDBI Bank Limited mentioning the correct rate of interest of the said letter.
Date of instrument Creating the charge	29/09/2010
Amount secured by the charge	Rs.12100.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest IDBI BPLR minus 50 bps (currently equivalent to 12.25%) Terms of Repayment Repayment to be made in 40 quarterly installments commencing from April 1, 2012 Margin Nil Extent and Operation of the charge First charge on all the rights, titles, interests, benefits, claims and demands whatsoever of the Company in relation to the Project (i.e. acquisition of 2 Jack up Rigs), Project Documents, intangible assets, Letter of Credits and Counter Guarantees given by the Counter Parties, Insurance Policies, Debt Service Reserve Account, Bank Accounts, Book Debts, Receivables, Revenues, Movable Properties, both present and future
Short particulars of the property charged	The whole of the tangible moveable properties, both present and future (more particularly described in Schedule 3 of the Deed of Hypothecation dated December 31, 2009). All the rights, titles, interests, benefits, claims and demands whatsoever of the Company in relation to the Project of the Company and Project Documents; Letters of Credit and counter guarantees given by the Counter Parties in terms of Project Documents. Insurance Policies, both present and future Intangible assets including but not limited to goodwill, uncalled capital, both present and future. Debt Service Reserve Account, other reserves, bank accounts, present and future. All present and future book debts, operating cash flows, receivables, commissions, revenues, claims and choses-in-action of whatsoever nature.
Particulars of the present modification	By this modification, the interest rate in column 13(a) is being corrected to 12.25% instead of 12.15%, which was mentioned wrongly due to a typographical error in the earlier E-Form.

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.49.25
UK Pound	1	Rs.77.19
Euro	1	Rs.65.29

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.