MIRA INFORM REPORT

Report Date :

10.07.2012

IDENTIFICATION DETAILS

Name :	GULF OIL CORPORATION LIMITED
Registered Office :	Kukatpalli P.B. No.1, Sanatnagar (IE), Hyderabad – 500018, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.04.1961
Com. Reg. No.:	01-000876
Capital Investment / Paid-up Capital :	Rs.198.290 Millions
CIN No.: [Company Identification No.]	L24292AP1961PLC000876
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Subject is engaged in lubricants, industrial explosives, mining and infrastructure services and property development
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (64)

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 17000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of International Hinduja Group. It is a well established and reputed company having fine track records. 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 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 / Corporate Office :	Kukatpalli P.B. No.1, Sanatnagar (IE), Hyderabad – 500018, Andhra Pradesh, India
Tel. No.:	91-40-2381 0671 – 79
Fax No.:	91-40-23813860
E-Mail :	secretarial@gulfoilcorp.com
Website :	www.gulfoilcorp.com
Factory 1 :	Explosives Division/Mining and Infrastructure Division Kukatpally Post Bag No.1, Sanatnagar (I.E) P.O, Hyderabad - 500018, Andhra Pradesh, India
Tel. No.:	91-40-23810671/79/23707472
E-Mail :	explosives@idlind.com contracts@idlind.com
Factory 2 :	Explosives Division, Rourkela, Orissa, India
Factory 3 :	Bulk Plants at Singrauli Korba Rajrappa Ramagundam Dhanbad Udaipur
Factory 4 :	Lubes Division, Silvassa
Factory 5 :	IN Centre, 49/50 MIDC 12^th Road, Marol, Andheri East, Mumbai – 400093, Maharashtra, India
Tel. No.:	91-22-28248240
E-mail :	lubes@gulfoilcorp.com

DIRECTORS

As on 31.03.2011

Name :	S. G. Hinduja
Designation :	Chairman
Name :	R. P. Hinduja
Designation :	Vice Chairman
Name :	K. N. Venkatasubramanian
Designation :	Director
Name :	H. C. Asher
Designation :	Director
Name :	Mr. M. S. Ramachandran
Designation :	Director
Name :	Mr. Ashok Kini
Designation :	Director
Name :	Mr. Prakash Shah
Designation :	Director
Name :	Ms. Kanchan Chitale (w.e.f. 5.10.2009)
Designation :	Director
Name :	Vinoo S Hinduja
Designation :	Director
Name :	V. Ramesh Rao
Designation :	Director
Name :	Mr. Vinod K Dasari
Designation :	Director
Name :	S. Pramanik, Managing Director
Designation :	Director
Name :	A. K. Das, Alternate to S. G. Hinduja
Designation :	Director
Name :	A. V. Dujean, Alternate to R. P. Hinduja
Designation :	Director
Name :	K.C. Samdani, Alternate to Vinoo S. Hinduja
Designation :	Director

KEY EXECUTIVES

Name :	S. Subramanian
Designation :	Company Secretary
Name :	A. Satyanarayana
Designation :	Deputy Company Secretary
COMMITTEES OF THE BOARD:
AUDIT:
Name :	Mrs. Kanchan Chitale
Designation :	Chairperson
Name :	Mr. H. C Asher
Name :	Mr. Ashok Kini
SHARE TRANSFER AND INVESTORS GRIEVANCE:
Name :	Mr. Ashok Kini
Designation :	Chairman
Name :	Mr. S. Paramanik
Name :	Mr. Vinod K Dasari
REMUNERATION AND NOMINATION:
Name :	Mr. Prakash Shah
Designation :	Chairman
Name :	Mr. H. C Asher
Name :	Mr. M S Ramachndran
SAFETY REVIEW:
Name :	Mr. Vinod Dasari
Designation :	Chairman
Name :	Mr. Ashok Kini
Name :	Mr. K N Venkatasubramanian
INVESTMENT APPRAISAL AND PROJECT REVIEW:
Name :	Mr. M S Ramachndran
Designation :	Chairman
Name :	Mr. Vinod S Hinduja
Name :	Mr. Vinod Dasari
CORPORATE :
Name :	S. Subramanian
Designation :	Chief Financial Officer and Company Secretary
Name :	Y. V. Siva Reddy
Designation :	General Manager (Internal Audit)
LUBRICANTS DIVISION :
Name :	Mr. Ravi Chawla
Designation :	President (Lubricants)
Name :	Mr. Amrish Kathane
Designation :	Senior General Manager (Finance and Accounts)
Name :	Mr. Y. P. Rao
Designation :	Sr. V.P (Technical)
Name :	Manish Gangwal
Designation :	G.M. (Finance and Accounts)
Name :	R. Varadarajan
Designation :	Sr. V.P. (Sales and Business Development)
Name :	Alok Mahajan
Designation :	G.M. (Marketing)
EXPLOSIVES AND CONTRACTS DIVISIONS :
Name :	Raman Gopal
Designation :	President (IDL Divisions)
CONTRACTS DIVISIONS :
Name :	T.T. Das
Designation :	General Manager – Consult

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	49,536,335	49.96
Sub Total	49,536,335	49.96
Total shareholding of Promoter and Promoter Group (A)	49,536,335	49.96
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2,438,312	2.46
Financial Institutions / Banks	2,744,965	2.77
Central Government / State Government(s)	298,980	0.30
Foreign Institutional Investors	438,515	0.44
Sub Total	5,920,772	5.97
(2) Non-Institutions
Bodies Corporate	13,710,155	13.83
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	14,416,060	14.54
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	12,231,002	12.34
Any Others (Specify)	3,330,656	3.36
Trusts	4,150	-
Directors & their Relatives & Friends	11,187	0.01
Clearing Members	53,100	0.05
Non Resident Indians	595,553	0.60
Overseas Corporate Bodies	2,666,666	2.69
Sub Total	43,687,873	44.06
Total Public shareholding (B)	49,608,645	50.04
Total (A)+(B)	99,144,980	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)	99,144,980	-

BUSINESS DETAILS

Line of Business :

Subject is engaged in lubricants, industrial explosives, mining and infrastructure services and property development

Products :

Item Code No.	Product Description
IDL Divisions
Industrial Explosives Permitted Types	360200.01
Other	360200.09
Detonating Fuse	360300.01
Detonatros Containing and Explosives Electricity Ignited, Not-ordinance	360300.11
Detonators, Plain Not-ordinance	360300.12
Fresh (Cut Flowers)	060313.11
Lubricants Divisions
Lubricating Oils	2710.95
Brake Fluids	3811.00
Coolant	3819.00
2T Oils	3824.90

PRODUCTION STATUS (As On 31.03.2011)

Item	Unit	Licensed*	Installed	Production
Detonators	Millon Nos	192.00	192.00	103.29
Detonating Fuse	Millon Metres	45.00	22.50	22.91
Safety Fuse	Millon Metres	87.78 #	-	-
Industrial Explosives-	Tonnes	6000.00	138000.00	42639.41
Cartridged, Bulk,
Emulsion and ANFO
Boosters	Tonnes	190.00	125.00	22.99
Penta Erythritol	Tonnes	1440.00	-	-
Tetra Nitrate (PETN) @
Exploders	Numbers	500.00	-	-
Single or double or	Sq.Metres			1122.11
Multilayer clad plates $	Corresponding to Tonnes	!	!!	77.39
Lubricating Oils	KL	NA	75000.00	51031.00

** Installed Capacity is as certified by the Managing Director and not verified by the auditors, being a technical matter

Notes:

1. Licenced capacity includes letter of intent issued by Government of India and includes application for renewals

# As given in the licence, 12 million coils per annum which is equivalent to 87.78 million metres

@ Only Bhiwandi Plant for which a separate licence has been obtained, however, the plant has since been closed.

! 1,00,000 Sq. metres corresponding to maximum tonnage of 25,000 tonnes of cladding plates

!! Installed Capacity is not estimatable as production can be increased substantially with the facilities available merely by increasing the size/weight of clad plates

$ Excludes product meant for development production of intermediate products captively consumed and products for which no separate licence was required, has not been included above.

* Pursuant to the Scheme of Demerger of Explosives undertaking of the Company, the related licence and installed capacity of 132000 MT is transferred to IDL Explosives Limited.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of India
• Andhra Bank
• State Bank of Hyderabad
• IDBI Bank Limited
• Oriental Bank of Commerce
• Bank of Bahrain and Kuwait B.S.C.
• ICICI Bank Limited
• HSBC Bank

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
From Banks
Cash Credit (includes Working Capital Demand Loan)	529.793	692.688
Foreign Currency Working Capital Loan [USD 0.50 million (31.03.2010 USD 2.25 million)]	22.325	101.565
Term Loans
State Bank of India	44.034	76.914
State Bank of Hyderabad	244.741	475.449
ABN Amro Bank	0.000	21.546
Oriental Bank of Commerce	0.837	3.558
Andhra Bank	0.625	10.363
Kotak Mahindra Bank Limited	10.176	26.427
State Bank of Mauritius Limited	146.933	196.000
From Others
SREI Infrastructure Finance Limited	20.979	40.412
Hinduja Ventures Limited	0.000	62.529
Total	1020.443	1707.451
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Fixed Deposits	38.467	51.069
Deferred Hire Purchase Credits	18.118	42.247
Short Term Loan from IDBI Bank Limited	0.000	200.000
SREI Infrastructure Finance Limited	5.136	10.448
Dealers Deposits	0.000	6.825
Buyers Credit	690.756	1030.694
Total	752.477	1341.283

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Secunderabad, Andhra Pradesh, India
Name :	Shah and Company Chartered Accountants
Address :	Mumbai (Branch Auditors), Maharashtra, India
Subsidiaries :	IDL Buildware Limited Gulf Carosserie India Limited Gulf Oil Bangladesh Limited PT Gulf Oil Lubricants Indonesia Gulf Oil (Yantai) Limited, China Hinduja Infrastructure Limited IDL Speciality Chemicals Limited (formerly IDL Agro Chemicals Limited) (upto 28.03.2010)
Entity holding more than 20% of the shareholding in the Company	Gulf Oil International (Mauritius) Inc

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
125000000	Equity Shares	Rs. 2/- each	Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
99144980	Equity Shares	Rs. 2/- each	Rs. 198.290 Millions

Note:

Of the above

(a) 4,65,025 shares represent 93,005 shares after sub-division of shares of Rs.10 to Rs.2 each allotted as fully paid pursuant to contract without payment being received in cash

(b) 2,60,75,125 shares represent 52,15,025 shares after subdivision of shares of Rs.10 to Rs.2 each allotted as fully paid up bonus shares by capitalisation of Reserves.

(c) Pursuant to the merger scheme as approved by Board for Industrial and Financial Reconstruction, 15,18,735 shares represent 3,03,747 shares after sub-division of shares from Rs.10 to Rs.2 each, allotted effective 31st March, 1999 to the shareholders of erstwhile IDL Salzbau (India) Limited.

(d) 2,93,50,000 shares represent 58,70,000 shares after subdivision of shares from Rs.10 to Rs.2 each, allotted effective 1st January, 2002, consequent to the amalgamation of erstwhile Gulf Oil India Limited, to the shareholders of erstwhile Gulf Oil India Limited

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		198.290	148.717	148.717
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4229.779	4078.977	3979.417
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4428.069	4227.694	4128.134
LOAN FUNDS
1] Secured Loans		1020.443	1707.451	1712.263
2] Unsecured Loans		752.477	1341.283	2370.368
TOTAL BORROWING		1772.920	3048.734	4082.631
DEFERRED TAX LIABILITIES		11.821	0.000	0.000
TOTAL		6212.810	7276.428	8210.765
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4181.637	5687.035	5919.223
Capital work-in-progress		119.499	123.352	148.436
INVESTMENT		888.647	305.774	306.767
DEFERREX TAX ASSETS		0.000	14.627	52.827
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1615.524	1213.034	1639.940
	Sundry Debtors	976.838	1180.841	1654.689
	Cash & Bank Balances	757.842	818.169	858.061
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	479.839	642.888	723.262
Total Current Assets		3830.043	3854.932	4875.952
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1300.114	1298.250	1312.279
	Other Current Liabilities	256.432	150.970	560.599
	Provisions	1250.470	1260.072	1219.562
Total Current Liabilities		2807.016	2709.292	3092.440
Net Current Assets		1023.027	1145.640	1783.512
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		6212.810	7276.428	8210.765

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	9012.713	9760.625	9123.016
		Income from property development	0.000	0.000	105.000
		Other Income	276.960	264.930	254.452
		TOTAL (A)	9289.673	10025.555	9482.468
Less	EXPENSES
		Cost of materials	4292.812	4704.918	4491.603
		Other operating expenses	4235.145	4510.889	4206.564
		Exceptional item	(201.174)	(158.461)	0.000
		TOTAL (B)	8326.783	9057.346	8698.167
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		962.890	968.209	784.301
Less	FINANCIAL EXPENSES (D)		132.165	255.107	243.036
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		830.725	713.102	541.265
Less/ Add	DEPRECIATION/ AMORTISATION (F)		160.522	170.079	153.724
	PROFIT BEFORE TAX (E-F) (G)		670.203	543.023	387.541
Less	TAX (I)		128.300	92.300	97.103
	PROFIT AFTER TAX (G-I) (J)		541.903	450.723	290.438
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		830.387	585.740	480.195
Less	APPROPRIATIONS
		Transfer to General Reserve	55.000	50.000	37.000
		Proposed Dividend	198.290	133.846	126.410
		Dividend Tax	32.168	22.230	21.483
	BALANCE CARRIED TO THE B/S		1086.832	830.387	585.740
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	416.127	602.934	413.937
	TOTAL EARNINGS		416.127	602.934	413.937
	IMPORTS
		Raw Materials	1605.235	1100.590	2098.294
		Capital Goods	3.667	3.685	119.924
		Stores and Spares	2.230	0.000	0.000
		Traded Goods	11.732	14.798	158.182
	TOTAL IMPORTS		1622.864	1119.073	2376.400
	Earnings Per Share (Rs.)
	- Basic		6.11	6.06	3.91
	- Diluted		6.11	6.06	3.91

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011	31.03.2012
	1^st Quarter	2^nd Quarter	3^rdQuarter	4^th Quarter
Net Sales	2211.450	2280.320	2420.480	2675.680
Total Expenditure	2042.150	2157.820	2287.590	2523.190
PBIDT (Excl OI)	169.300	122.500	132.890	152.490
Other Income	5.210	7.220	40.930	115.400
Operating Profit	174.510	129.720	173.820	267.890
Interest	19.420	6.3000	23.400	58.750
Exceptional Items	71.170	45.720	27.100	65.230
PBDT	226.260	169.140	177.520	274.370
Depreciation	35.520	35.970	36.210	36.470
Profit Before Tax	190.740	133.170	141.320	237.900
Tax	40.200	2.900	10.400	28.500
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	150.540	130.270	130.920	209.390
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	150.540	130.270	130.920	209.390

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.83	4.50	3.06
Net Profit Margin (PBT/Sales)	(%)	7.44	5.56	4.25
Return on Total Assets (PBT/Total Assets}	(%)	17.50	14.07	7.95
Return on Investment (ROI) (PBT/Networth)		0.15	0.13	0.09
Debt Equity Ratio (Total Liability/Networth)		1.03	1.36	1.74
Current Ratio (Current Asset/Current Liability)		1.36	1.42	1.58

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	No

OPERATIONS

The total turnover of the Company Rs.10010.200 Millions (previous year - Rs.10656.600 Millions). The profit before exceptional items and taxation was Rs.469.000 Millions (Rs.384.600 Millions). The profit before tax was Rs.670.200 Millions s (Rs.543.000 Millions). The profit after provision for current tax of Rs. 86.600 Millions and deferred tax of Rs.41.700 Millions, was Rs.541.900 Millions (Rs. 450.700 Millions) resulting in an EPS of Rs.6.11 for the year (Rs.6.06).

DIVISIONAL PERFORMANCE

Lubricants

The Lubricants Division has significantly improved performance during the Financial Year 2010-11, both in terms

of value/volume growth as well as profitability. The gross turnover of the Division was at Rs. 6790.000 Millions as against Rs. 5630.000 Millions, an increase of 21% over previous year and segment margins nearly doubled. Prices of major raw materials like base oils started firming up in the 2nd half of the year and coupled with increase in prices of additives, packaging etc forced the Division to take price increases as a margin management strategy in line with other industry players.

The Lubricant Industry growth in overall volumes was at 3-4%. The positive aspect was that the bazaar market continued to grow at 7-8 % and the acceptance of ‘long-drain’ lubricants was significantly higher. The Automobile Industry witnessed positive growth throughout the year with Commercial Vehicles segment posting a growth of 27%. Passenger Car and Two Wheeler segments also growing at a fast pace of 29% and 26% respectively. The overall growth of the automobile industry was substantial at over 25% growth. Accordingly, demand conditions in the lube industry also remained buoyant for Automotive Lubricants. With industrial growth also positive all through the year, the Lubes Division has grown in volumes well ahead of the industry and achieved faster growth resulting in increased market share.

The objective of the Lubricants Division for achieving higher volume growth compared to the industry over the last

couple of years was successfully continued also during the year. The key strategies, with a focus on a segment wise approach backed by channel expansion, promotions for trade, influencers and end-users, coupled with brand building initiatives, were successfully executed across core segments of New Generation Diesel Engine Oils, Motorcycle Oils (4T) and Passenger Car Motor Oils. The major highlight of the operations during the year has been substantial growth in the highly competitive 4T segment which has strengthened the position of the Division’s brands in this fast growing market segment.

In spite of increased competition, the Division continued to protect and also grow its market share in the important New Generation Diesel Engine Oils segment to retain the overall No. 2 position across India, in the key bazaar segment.

In the motorcycle segment, the Division launched the Gulf Bikestops – a branded workshop concept and covered more than 125 locations across India.

The Division continued its technological up-gradation of product portfolio in commercial vehicles and launched an

Advanced Engine Oil, Gulf Super Fleet Dura Max, with high extended life of 80,000 Kms for the next generation “U” trucks launched by Ashok Leyland.

By closely working with the OEM (vehicle manufacturers) a completely new range of products like Axle Oils, Transmission Oils and Greases were developed and launched with the USP of “extended service period”. The Division has grown its business with key OEMs like Ashok Leyland and also forged tie-ups with leading OEM’s like Mahindra (Automotive Division) by launching a co-branded range of lubricants with them in third quarter of the current year, contributing further to the Division’s growth, which has also contributed to the overall growth.

In the Industrial segment, the direct customer base of fleets, industries and construction companies has been expanded and the Division has added leading ‘Build, Operate and Transfer’ ( BOT ) customers to its fold. The Division also increased sales and market share by breaking into new medium sized industries and OEMs.

A new business segment of “Adblue” with a tie up with Greenchem (Netherlands) for meeting the requirement of Euro IV vehicles with SCR, after treatment device.

Brand Building

As part of increasing brand visibility and brand building, the Division invested in launching mass media campaigns on television and outdoor. In addition, the Division continued its signage and wall painting programs and the Gulf Cup covering the Dirt Track Championship for Motorbikes. The event is being held annually across India.

An innovative consumer scheme – Gulf King of the Road – was launched to energise Trade and attract consumers and drive tertiary sales. The scheme was promoted through TV advertisements in Hindi, Telugu and Tamil channels for an all India reach and supported by High visibility programs in the market through a Dealer Display scheme in key cities and towns. Rewards were also provided to key influencers – the garage mechanics. The Division continued its ground level initiatives in terms of retailer, mechanic loyalty programs as well as consumer promotions in key products.

Industrial Explosives

The Explosives Division, after the Scheme of Arrangement is implemented from 1st October, 2010, will consist of Blast Initiation Systems business which manufactures the full range of packaged bulk explosive products and blasting accessories, including cast boosters for the mining, civil infrastructure and oil exploration segments. Detonators include Plain, Electric, Non-electric and Electronic varieties and Detonating Cords of various grammages.

While the business from the national market accounted for 82 % of sales turnover, the rest came from exports in the international market. The business in the national market dropped by 2%, the business in international market grew by 2%. The Division achieved an overall turnover of Rs. 1940.000 Millions during F-11, against previous year’s turnover of Rs. 3080.000 Millions. The Division’s turnover was affected to the extent of Rs. 110.000 Millions, due to suspension of operations at Hyderabad for 45 days in September / October 2010 by the Petroleum and Explosives Safety Organization (PESO) due to alleged noncompliances of rules under the recently released Explosive Rules 2008. The suspension was withdraw after submission of their replies security audit by PESO.

Bulk Explosives business contributed to approximately 56% of turnover. This business achieved negative growth by 10% over previous year, due to lower demand arising out of stringent implementation of new PESO rules and consequent withdrawal of permission for outsourcing products of other manufacturers having spare capacity.

While all operations of the Explosives Division were previously covered under Quality Management System, the Division carried out diligent exercises for implementing the Integrated Management System (IMS) where Environmental Management System (ISO 14001-2004) and Occupational Health and Safety Management System (BS OHSAS 18001- 2007) are integrated with the organization’s systems and processes into one framework. TUV Rheinland audited and recertified the “Quality Management System (QMS) against ISO 9001:2008 Standard during August 2010. The Adequacy and Stage I Audits for EMS and OHSAS were carried out during the year and the final certification audit was completed in April 2011.

Performance of User Industry

The Explosives Division products are consumed largely by Mining and Infrastructure industries. Amongst mining

industries, the coal mining industry consumes more than 60 % of products. The production performance of Coal India Limited (CIL), a coal major is below par to the extent of 5% in F-11. Other mining industries like iron ore, lime stone mines (related to steel and cement) also did not fare well compared to previous year; and their production was less than the previous year. The mining industry on an overall basis, did not fare as expected due to stringent implementation of environmental laws in the year 2010-11. In fact, as per official GDP details issued by the Central Statistical Organisation, the revised estimates for 2010-11 indicate that Mining and Quarrying activity grew by only 5.9% in F-11 as against 9.9% F-10.

Mining and Infrastructure (IDLconsult)

The performance of Mining and Infrastructure Division (IDL Consult) during the year was lukewarm. The mining contracts in the Iron ore block of Orissa which was contributing to the business of the Division over the last four years was affected due to the statutory restrictions from the State and Central Governments on account of lease areas allowed for mining and environmental exigencies. As a result, the Division ended the year with the revenue of Rs.1260.000 Millions as against Rs.1940.000 Millions in the previous year. No new projects were undertaken during the year, but another large coal mining project at Nigahi under Northern Coalfields Limited, Singrauli was completed ahead of schedule. The activities of the Division were therefore reduced considerably during the year.

Uranium ore mining project for Uranium Corporation of India under the Department of Atomic Energy was fully operational with the installation of all equipments required for the project. The Uranium mine started from February 2010 but has been slowed down due to local issues. They expect this work to continue in full swing in the current year.

The Division had undertaken an ambitious project for implementing an Integrated Management System covering Quality, Safety, Occupation Health and Environment. The efforts of the Division in achieving ISO 14001 and OHSAS 18001 were completed.

The Division has now received certification under ISO 9001 (Quality Management System) from TUV Sud and the ISO 14001 and BS OHSAS 18001 from BSI.

Other Business Groups

The 4 Wind Mills ( 1 MW ) located at Ramagiri in Andhra Pradesh generated 2,01,600 units (4,00,900 units). The

Hyderabad factory received the benefit of the generation through the APTRANSCO grid.

Exports

Sales of explosives and blasting accessories dipped to Rs.315 million during F-11 as against Rs.458 million in the

previous year. This was due to general economic slowdown in both Europe and Middle East; piracy on the high seas around the ‘Horn of Africa’; shutdown of the Hyderabad Plant for 45 days; affected product availability; and strict imposition of maximum shipment of 500 MT gross weight by the Naval Armament Depot contributed to the negative growth.

Business focus was re-aligned to protect margins through price increase, optimizing product mix, improving aesthetics, maintaining world-class quality levels. Re-design and rationalization of packing of export products with an objective of optimizing unit weight – volume helped reduce shipping costs.

Actions initiated for penetrating the African and South American markets and first time shipments successfully executed. Special Products Group also exported for the first time.

CE marking was extended to the entire range of Explosives, Detonators and Detonating Cord products. Their Company is the only manufacturer in India to have such extensive coverage.

The exports of the Lubricants Division were at 1487 KL as compared to 3547 KL in 2009-10. Exports turnover of Lubricant products was Rs. 133.400 Millions against Rs. 222.600 Millions in 2009-10. The Division is exporting its products mainly to Africa, Bangladesh and highly competitive Middle-East markets and exploring other regions such as South East Asia for further growth in exports.

Property Development

During the year the layout design of the IT / ITES Park at Bangalore was modified to take into account further widening of the Highway and creation of the elevated metro rail along the highway. The land to be acquired by the Government for the purpose was finalised and the final layout confirmed. Construction activities are to start shortly.

At Hyderabad, town planning work on the property under development is being tuned to the final alignment of the 100 ft. road through the property as per the Hyderabad Master Plan being implemented by Greater Hyderabad Municipal Corporation (GHMC) and Hyderabad Metro Development Authority (HMDA). As a result of the widening of the road, the Company will be required to surrender land through the centre and along the periphery of the property under development. Road work by GHMC is currently under way at the Company’s premises in Kukatpally.

SUBSIDIARIES

• Gulf Oil Bangladesh Limited reported a profit of Rs. 6.745 Millions (Rs.9.751 Millions).
• PT. Gulf Oil Lubricants Indonesia reported a profit of Rs. 4.814 Millions (Rs. 5.552 Millions).
• Gulf Oil (Yantai) Comapny Limited. reported a profit of Rs. 26.143 Millions (Rs.8.458 Millions).
• Hinduja Infrastructure Limited reported a profit of Rs. 0.002 Million ( Rs.0.007 Million).
• IDL Buildware Limited incurred a loss of Rs. 14.447 Millions (Rs.18.074 Millions) after closure of the factory at Vizag.
• Gulf Carosserie Limited reported a loss of Rs. 0.020 Million (Rs.0.024 Million).
• IDL Explosives Limited, which was incorporated during the year, reported a profit of Rs.2.769 Millions, on implementation of the Scheme of Arrangement.

OUTLOOK FOR THE CURRENT YEAR, OPPORTUNITIES AND THREATS

Lubricants

The growth in the lube industry is expected to be similar to the previous year in terms of volume growths at 3-4 % growth. Demand conditions in the bazaar market are expected to be at 6-8%. The automotive industry growth which was over 25% last year, is expected to slow down to some extent due to rising interest rates, high fuel costs and constrained finance availability. Industrial growth is expected to remain at last year levels. Keeping this in mind and the division’s strategies, the outlook is to achieve double the market growth rates in the segments the company operates and also to look at the industrial /B2B segment for additional opportunities. The Division is expecting to tie-up with new OEMs and also leverage the current tie-ups for volume growth.

The Division is planning to increase its presence with additional manpower and products to cater to this demand. The Lubricants Division will continue to strengthen its position with Ashok Leyland network and customers, with innovative programs and differentiated product offerings, which add value to the customers.

The key initiative was the Sponsorship of IPL-III winners Chennai Super Kings team for IPL –IV lead by the Indian

Captain - M S Dhoni in addition to continuation of sponsorship relations with the Kings XI Punjab Cricket franchise for the Indian Premier League (IPL - 4). These associations helped to build brand awareness/recall amongst the cricket loving as well as to target youth audiences across India. The various related ‘activation programs’ have enabled the Division to increase brand awareness and recall.

Brand Building efforts will continue and the tie-up with Chennai Super Kings will be supported by various activities to increase presence and market shares across India in the coming year.

The raw material prices and input costs are expected to increase. Base oils are showing a rapid increasing trend and this is expected to impact margins/profitability.

Explosives

Industrial Explosives and Blasting Accessories

The demand for explosives and blasting accessories primarily depends on growth in country’s mineral, infrastructure and oil exploration sectors. Mineral and Infrastructure sectors are slated for multi-fold growth of approximately 400 % in the next 20 years and hence they envisage good demand for both explosives and accessories products in the coming years.

If the Indian government takes suitable policy measures, average growth of mineral industry is expected to be around 20% annually. The Division thus has an excellent potential for steady growth in the years to come.

Mining and Infrastructure (IDLconsult)

Besides, being an important sector of the Indian Economy, mining touches the life of every person in the country. As India grows and the standard of living improves, the consumption of coal and metals will increase. The down side however, is linked to degradation of the environment and forests. As the economy accelerates, valid concerns on environmental issues are to be addressed. Development and environmental sustainability are both extremely important for the country. The mining industry has been under detailed review over the past few years. Statistics from the Department of Mines shows that among the 9400 current mine leases, 192 leases cover an area of greater than 500 hectares each on an average. In effect, 2% of the mine leases occupy 41% of the area. Large mines require detailed mine planning and application of technology. The newer mines in India are designed for global scale of operation in terms of efficiencies and size.

The share of the private sector in mining is growing, encouraged by the government policies and allocation of coal

blocks for captive use. However, many of the new coal mines have not started even after 7-8 years after allocation, due to various reasons including the delays in getting environment and forest clearances. As a result, import of coal was of the order of a 100 million tonnes in F11. This strongly indicates that the demand for coal has grown while the growth in supply of Indian coal has not kept pace with the growth in demand. Imported coal is more expensive in comparison to domestic coal. Replacement of 100 million tonnes of imported coal, with locally mined coal will generate a need to handle 400 million tonnes of over burden (valued at over Rs 50000.000 Millions ). It is only a matter of time, before many new mines open up, affording new and greater opportunities for mining services.

Responding to the current situation, their focus has been to build capability to operate large mines, reinforce their position as a professional mining contractor with experience of handling a variety of minerals, operating with the best in class management systems and processes.

Their experience in Coal, Iron ore, Manganese, Bauxite, Uranium etc, with their track record of handling cumulatively 120 million Cum puts us on the top of the list among the Indian mining contractors. They are in the process of working with many potential mine owners discussing the opportunity as Mine Developer and Operator for their mines.

The Division has been in discussion with several infrastructure and mining projects for undertaking large scale assignments. Many of these are in final stages of negotiation and will impact the performance of the Division from F 2012 onwards.

CONTINGENT LIABILITIES (As on 31.03.2011)

Rs. In Millions

PARTICULAR	31.03.2011
(a) Corporate Guarantees *	64.470
(b) Claims against the Company not acknowledged as debts
(i) Income Tax Demands	175.836
(ii) Wealth Tax	19.666
(iii) Sales Tax Demands	227.911
(iv) Excise Demands	76.362
(v) Service Tax	0.449
(vi) Additional Demands towards cost of land	0.381
(vii) Claims of workmen/ex-employees	7.604
(viii) Other Matters	9.326
(ix) Performance and Other Guarantees	17.862

(c) In terms of the agreement between IDL Speciality Chemicals Limited, Biocon Limited, and the Company for the sale of Active Pharma Ingredients (API) business to Biocon Limited, the Company would be responsible for guaranteeing to Biocon Limited claims upto a period of one year after the closing date i.e., 30th November, 2009 to the extent of purchase price of Rs.220.000 Millions. The Company has not received any claims.

* The Company has given a Corporate Guarantee of 100 Million Taka to South East Bank Limited, on behalf of Gulf Oil Bangladesh Limited., a subsidiary of Gulf Oil Corporation Limited. The amount outstanding as on 31st March 2011 is 4.67 Million Taka - Rs. 2.971 Millions (31st March 2010, 21.51 Million Taka - Rs. 8.092 Millions

AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31-03-2012

Rs. In Millions

				Rs in Millions	Rs in Millions	Rs in Millions
	Particulars			Quarter ended	Quarter ended	Year ended
				31.03.2012	31.12.2011	31.03.2012
				(Unaudited)	(Unaudited)	(Audited)
1	Net Sales/Income from Operations
	a Grass Sales / Income from Operations			2999.888	2706.350	10739.415
	Excise Duty			327.274	289.045	1162.730
	Net sales /Income from Operations (net of excise duty)			2672.614	2417.305	9576.685
	b Other operating income			3.065	3.174	18.201
2	Total Income from operations (net) (a+b)			2675.679	2420.479	9594.886
	Expenditure
	(a)		Cost Material consumed	1128.155	1067.219	4254.546
	(b)		Purchase of traded goods	102.155	130.318	471.042
	©		Changes in inventories of finished goods and works-in-process	73.269	30.871	(10.084)
	(d)		Expenses on Operation Contracts	126.928	104.482	453.099
	(e)		Employee benefits expense	163.355	165.287	658.475
	(f )		Depreciation	36.468	36.205	144.161
	(g)		Other Expenditure	929.332	784.054	3169.228
3			Total Expenses	2559.662	2318.436	9140.467
4			Profit from Operations before Other income, finance costs and Exceptional Items (2-3)	116.017	102.043	454.419
5			Other Income	115.403	68.236	259.326
6			Profit before finance costs and Exceptional Items (4+5)	231.420	170.279	713.745
7	Financial Costs			58.752	56.063	219.839
8	Profit after finance costs but before exceptional item (6-7)			172.668	114.216	493.906
9	Exceptional Items			65.227	27.100	209.217
10	Profit from Ordinary Activities before tax (8+9)			237.895	141.316	703.123
11	Tax Expenses			28.500	10.400	82.000
	Current			45.000	39.700	158.500
	Deferred			(16.500)	4.700	(9.500)
	MAT Credit			--	(34.000)	(67.000)
12	Net Profit for the year from Ordinary Activities after tax (10-11)			209.395	130.916	621.123
13	Extraordinary Item			--	--	--
14	Net Profit for the year before Minority Interest (12-13)			209.395	130.916	621.123
15	Share of Minority Interest			--	--	--
16	Profit after Minority Interest (14-15)			--	--	--
17	Paid up Equity Share Capital (Face value of Rs.2 each)			198.290	198.290	198.290
18	Reserves(excluding revaluation reserve			--	--	38389.30
18		Earning Per Share (not annualised) Basic and Diluted		2.11	1.32	6.26
19		Public Shareholding
		Number of Shares		49608645	49608645	49608645
		Percentage of Shareholding		50.04	50.04	50.04
20		Promoters and Promoter group
		a) Pledged/Encumbered
		Number of shares		--	--	--
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		--	--	--
		Percentage of Shares (as a % of the total share capital of the Company)		--	--	--
		b) Non-encumbered
		Number of shares		49536335	49536335	49536335
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		100	100	100
		Percentage of Shares (as a % of the total share capital of the Company)		49.96	49.96	49.96

Rs. In Millions

Particulars	3 months ended 31.03.2012
INVESTOR COMPLAINTS
Pending at the beginning of the quarter	Nil
Received during the quarter	20
Disposed of during the quarter	20
Remaining unresolved at the end of the quarter	Nil

SEGMENT INFORMATION AS PER CLAUSE 41 OF THE LISTING AGREEMENT FOR THE QUARTER AND YEAR ENDED 31-03-2012

Rs. In Millions

	Rs in Millions	Rs in Millions	Rs in Millions
Particulars	Quarter ended	Quarter ended	Year ended
	31.03.2012	31.12.2011	31.03.2012
	(Unaudited)	(Unaudited)	(Audited)
1. Segment Revenue
a. Explosives	207.699	184.085	876.347
b. Lubricants	2310.148	2120.349	8215.818
c. Consult (Mining/Infrastructure contracts)	158.305	118.934	509.149
d. Property Development	--	-	--
e. Others	--	--	--
f. Unallocable Income	116.850	67.944	260.274
Total	2793.002	2491.312	9861.588
Less: Inter segment revenue	1.920	2.597	7.376
Revenue from Sales and other Income	2791.082	2488.715	9854.212
2. Segment Results
Profit/(loss) (before tax and finance costs from each segment)
a. Explosives	(6.717)	5.904	86.527
b. Lubricants	230.303	230.505	876.914
c. Consult (Mining/Infrastructure contracts)	(88.768)	(109.830)	(416.868)
d. Property Development	--	--	--
e. Others	--	--	--
Total	134.818	126.579	546.573
Less:	0.00	0.00	0.00
(i) Finance costs paid	192.724	(14.599)	203.847
(ii) Other un-allocable expenditure net off un-allocable income	(295.801)	(0.138)	(360.397)
Total Profit Before Tax	237.895	141.316	703.123
3. Capital Employed
a. Explosives	285.730	333.175	285.730
b. Lubricants	1547.604	1009.155	1547.604
c. Consult (Mining/Infrastructure contracts)	539.197	583.887	539.197
d. Property Development *	9761.730	3463.161	9761.730
e. Others	0.231	0.239	0.231
f. Unallocable-Corporate	(458.328)	355.196	(458.328)
Total	11676.164	5744.813	11676.164

Note:

* (a) During the year, the Company surrendered certain portion of the land for road widening purposes to Greater Hyderabad Municipal Corporation. Consequently, Rs. 328.567 Millions (out of Rs. 3295.545 Millions as on March 31st, 2011) has been withdrawn from revaluation reserve during the year.

(b)Land meant for property development at Hyderabad has been revalued as at March 31, 2012 based on valuation by an approved valuer. The resultant surplus on such revaluation amounting to Rs. 6302.755 Millions as been further credited to Revaluation Reserve.

STATEMENT OF ASSETS AND LIABILITIES

	PARTICULAR	31.03.2012
I	Equity and Liabilities
	1) Shareholders Funds
	a) Share Capital	198.290
	b) Reserves and Surplus	10571.588
	Sub-total-Shareholders' funds	10769.878
	2) Non – Current Liabilities
	a) Long term Borrowing	279.079
	b) Deferred tax liabilities (Net)	2.321
	c) Other Long term liabilities	64.649
	d) Long-term provisions	927.721
	Sub-total - Non-current liabilities	1273.770
	3) Current Liabilities
	a) Short term borrowing	2143.859
	b) Trade payable	949.291
	c) Other current liabilities	615.841
	d) Short term provision	262.056
	Total	3971.047
	Total	16014.695
II	Assets
	1) Non – Current Assets
	a) Fixed assets	10187.761
	b) Goodwill on consolidation	0.000
	c) Non – current Investment	306.394
	d) Deferred tax assets (net)	0.000
	e) Long-term loans and advances	128.336
	f) Other non-current assets	11.621
	Total	10634.112
	2) Current Assets
	a) Current Investment	249.000
	b) Inventories	1725.103
	c) Trade receivables	1103.779
	d) Cash and cash equivalents	1878.865
	e) Short term loans and advance	335.837
	f) Other current assets	87.999
	Total	5380.583
	Total	16014.695

Fixed assets:

• Land-Freehold
• Land-Leasehold
• Buildings
• Leasehold Improvements
• Plant and Machinery Equipments etc.
• Furniture, Fixtures and Office appliances
• Vehicles
• Technical Knowhow

PRESS RELEASE

Gulf Oil Net Profit Increases 15% to Rs. 620.000 Millions in 2011-12. Dividend Increased to 110%

Mumbai, May 30, 2012

30 May 2012

Highlights for Q4

- Turnover up 20% to Rs. 3000.000 Millions from Rs. 2510.000 Millions in corresponding quarter of last year.

- Profit higher by 11% to Rs. 209.400 Millions.

Gulf Oil Corporation Limited, a Hinduja Group Company, has reported an 20% increase in income in Q4. For the year ended 31st March 2012, the turnover was Rs. 10740.000 Millions and Profit after Tax increased by 15 % to Rs. 621.100 Millions. The Board has recommended an increased Dividend of Rs. 2.20 at 110% as against Rs. 2.00 (100%) for the previous year.

Division wise performance and highlights are as under:

LUBRICANTS DIVISION:

The Lubricants Division continued to record growth in revenues and volumes in Q 4 of Financial Year 2011-12. The Net Turnover for the quarter increased to Rs. 2310.000 Millions as compared to Rs. 1840.000 Millions in the corresponding quarter of the previous year i.e. a growth of 26% on QoQ basis. Operational Profit before Interest and Tax for the quarter has also gone up by 21% to Rs. 230.000 Millions compared to Rs. 190.000 Millions in the corresponding quarter of the previous year mainly on account of higher volumes achieved by the Division, inspite of pressure on margins due to raw material cost increases and competitive price reductions.

For the year ended 31st March, Lubricants Division achieved Net Turnover of Rs. 8220.000 Millions compared to Rs. 5980.000 Millions in the previous year 2010-11, a growth of 37% and Operational Profit before Interest and Tax for the year increased by 28% to Rs. 880.000 Millions against Rs. 690.000 Millions in the previous year.

The Lubes Division achieved growth in volumes which was well ahead of the industry and other leading competitors. Increase in volumes and growth was strong in the focus segments namely New Generation Diesel Engine Oils and Motorcycle Engine Oils. Continued on-the-ground / below-the-line initiatives and distribution increase across segments resulted in increased retail shares and product usage. Sales of co-branded ranges with Ashok Leyland and Mahindra also contributed to the growth.

Brand Building efforts with media-led campaigns were launched with The Champions of IPL – the Chennai Super Kings as a build-up to Season V of the Indian Premier League (IPL ). An All-India multi-media campaign exclusively featuring our newly appointed Brand Ambassador – Indian cricket Captain and India’s leading Youth Icon – Mahendra Singh Dhoni, was launched in January across leading television channels to drive-up brand awareness, communicating the brand value of ‘longer drain’ and strengthening the brand equity.

EXPLOSIVES DIVISION AT HYDERABAD

During Q4, the Explosives Division achieved sales of Rs. 210.000 Millions (as against Rs. 260.000 Millions last year ).

Production of detonators and cords was increased by 6% YoY. In detonating cords the high value 40 gms and 80 gms cords were increased.

During the year under review, R and D has obtained relevant statutory permissions for trial manufacture and field-evaluation of improved programmable electronic detonators. Field trials of the indigenously developed improved version of Electronic Detonators were successfully completed. More trials for customers are planned. High energetic materials for defense applications were also developed for premier Defense establishments of the Government of India and Pyrotechnic Igniters for Space applications.

ISO certifications ISO 9001/14001 and OHSAS 18001 for Hyderabad factory were renewed during the year.


MINING AND INFRASTRUCTURE DIVISION

IDLconsult Division reported a service income of Rs 160.000 Millions in Q4 ( previous year Rs 180.000 Millions ), based on activity in long term contracts for service in coal, metal and infra sectors. Most of the iron ore mines in Orissa and Karnataka where the business of the Division are located continued to remain closed during the quarter due to regulatory issues. This is the major reason for low turnover in Q4. Our clients from the iron and manganese ore sectors are continued to follow up for Forest and Environment Department clearances for validating their approvals.

Our work in the first package of the Pranahita-Chevella Irrigation Project in Andhra Pradesh is progressing well after the agreement reached between the Andhra Pradesh and Maharashtra Governments.

The Division is in discussions on long term Projects in Mining and Infrastructure sectors. About Rs. 2000.000 Millions of new orders are expected over the next two quarters to augment the current order booking position of around Rs. 2500.000 Millions.

PROPERTY DEVELOPMENT

Ground breaking for the Company’s Bengaluru Project was performed in April 2012. Pre-construction stage work on the Rs.18000.000 Millions project at Yelahanka, Bengaluru, consisting of a 30 acre IT / ITES SEZ park and a 10 acre Hotel / Hospitality / Retail areas being developed in association with Hinduja Realty Ventures Limited, has commenced. Work at site is progressing rapidly.

For the Hyderabad property, the Company is in final stages for entering into a development agreement with Hinduja Realty Ventures Limited. Sharing ratio based on recommendations of reputed property consultants are being considered for the documentation. In the meantime, work by GHMC on the 100 ft road passing through the Company’s property, has progressed further.

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] 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.56.02
UK Pound	1	Rs.86.77
Euro	1	Rs.68.82

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--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		64

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.