MIRA INFORM REPORT

Report Date :

09.10.2012

IDENTIFICATION DETAILS

Name :	HLS ASIA LIMITED
Formerly Known As :	HLS INDIA LIMITED
Registered Office :	109, Aurobindo Place, Hauz khas, New Delhi-110016
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.10.1985
Com. Reg. No.:	55-022279
Capital Investment / Paid-up Capital :	Rs.399.041 Millions
CIN No.: [Company Identification No.]	U11201DL1985PLC022279
TAN No.: [Tax Deduction & Collection Account No.]	DELH02647B
PAN No.: [Permanent Account No.]	AAACH0627H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	The Company is engaged in Wireline Logging, Perforation and related oilfield activities
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 4400000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. Financially company has performed well. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered normal for business dealing at usual trade terms and condition.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Cash Credit = A+
Rating Explanation	Have adequate degree of safety regarding timely servicing of financial obligation it carry low credit risk
Date	November 2011

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	109, Aurobindo Place, Hauz khas, New Delhi-110016, India
Tel. No.:	91-11-26968194 / 26569441
Fax No.:	91-11-26968195
E-Mail :	hlsasia@vsnl.net asiahl@vsnl.net
Website :	www.hlsasia.com
Head Office / Operations & Admin. Office :	C-2, Sector 57 Noida-201301, Uttar Pradesh, India
Tel. No.:	91-120-2588385-390, 2589863-864
Fax No.:	91-120-2589861-862
Western India Base :	Plot #B-225, Electronic Estate, Sector-25, GIDC Gandhinagar – 382026, Gujarat, India

DIRECTORS

As on 19.09.2011

Name :

Mr. Rajeev Grover

Designation :

Managing director

Address :

C-2/38, S.D.A. Hauz Khas, New Delhi, India

Date of Birth/Age :

30.06.1951

Date of Appointment :

29.08.2002

DIN No.:

00773359

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1961PTC003422	GANDHARV LAND AND FINANCE PRIVATE LIMITED	Director	25/09/1987	25/09/1987	8/12/2006	Active	NO
2	U11201DL1985PLC022279	HLS ASIA LIMITED	Managing director	29/08/2002	29/08/2002	-	Active	NO
3	U74999DL2003PTC119528	AUSTIN ENERGY SERVICES PRIVATE LIMITED	Director	24/03/2003	24/03/2003	-	Active	NO

Name :

Mr. Bhushan Lal Ahuja

Designation :

Director

Address :

64, Vasant Vihar, Phase-I, Dehradun - 248 006, Uttarakhand, India

Date of Birth/Age :

10.05.1936

Date of Appointment :

16.12.1994

DIN No.:

00772217

Name :

Mr. Surendra Kumar Sachdeva

Designation :

Director

Address :

4814, East Patel Nagar, New Delhi - 110008, India

Date of Birth/Age :

07.04.1937

Date of Appointment :

12.04.1999

DIN No.:

01127040

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1962PTC003637	SUDHA PUBLICATIONS PRIVATE LIMITED	Director	30/01/1962	30/01/1962	-	Active	NO
2	U74899DL1964PTC004186	COMPETITION REVIEW PRIVATE LIMITED	Managing director	19/05/1974	19/05/1974	-	Active	NO
3	U11201DL1985PLC022279	HLS ASIA LIMITED	Director	12/4/1999	12/4/1999	-	Active	NO
4	U80101DL2000PTC106022	CSR OVERSEAS EDUCATION SERVICES PRIVATE LIMITED	Managing director	31/05/2000	31/05/2000	-	Active	NO

Name :

Mr. Savmit Grover

Designation :

Director

Address :

C-2/32. SDA, Hauz Khas, New Delhi -110016, India

Date of Birth/Age :

07.11.1962

Date of Appointment :

22.06.2005

DIN No.:

00485304

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U45201DL2005PTC135940	CANTON BUILDERS PRIVATE LIMITED	Director	9/5/2005	9/5/2005	24/12/2007	Active	YES
2	U11201DL1985PLC022279	HLS ASIA LIMITED	Director	22/06/2005	22/06/2005	-	Active	NO
3	U45201DL2006PTC147757	PIONEER INFRABUILD PRIVATE LIMITED	Director	7/7/2006	7/7/2006	-	Active	NO
4	U00313DL2005PTC140501	BMG POLYPLAST PRIVATE LIMITED	Director	7/7/2006	7/7/2006	-	Active	NO
5	U72900DL2006PTC156785	SEGUE TECHNOLOGIES PRIVATE LIMITED	Director	20/12/2006	20/12/2006	15/03/2011	Strike off	NO
6	U51101DL2007PTC157875	BPS INTERNATIONAL PRIVATE LIMITED	Director	15/01/2007	15/01/2007	-	Active	NO
7	U45201DL2006PTC147089	ALAG BUILDWELL PRIVATE LIMITED	Director	1/2/2007	1/2/2007	24/01/2011	Active	NO
8	U70101DL2006PTC147966	POINEER INFRAPROP PRIVATE LIMITED	Director	1/2/2007	1/2/2007	-	Active	NO
9	U72400DL2007PTC161192	STRATOSHEAR TECHNOLOGIES PRIVATE LIMITED	Director	28/03/2007	28/03/2007	-	Active	NO
10	U67190DL2007PTC161442	BPS SYNAPSE INVESTMENTS PRIVATE LIMITED	Director	30/03/2007	30/03/2007	-	Active	NO
11	U93000DL2005PTC139635	SGA GLOBAL ADVISORS PRIVATE LIMITED	Director	13/04/2007	13/04/2007	25/04/2011	Active	NO
12	U74899DL1995PTC068853	AKSHIT PROPERTIES PRIVATE LIMITED	Director	9/6/2007	9/6/2007	-	Strike off	NO
13	U45200DL2006PTC156444	SKYLINE REALCON PRIVATE LIMITED	Director	9/6/2007	9/6/2007	-	Active	NO
14	U45201DL2006PTC147090	HOPE REALTORS PRIVATE LIMITED	Director	9/6/2007	9/6/2007	-	Active	NO
15	U65923DL2007PTC165621	BPS HOLDINGS PRIVATE LIMITED	Director	6/7/2007	6/7/2007	-	Active	NO
16	U24219DL1995PTC161189	PARIJAT INDUSTRIES (INDIA) PRIVATE LIMITED	Director	29/09/2007	31/07/2007	-	Active	NO
17	U18101DL2001PTC112198	NADIA STUDIO PRIVATE LIMITED	Director	30/11/2007	30/11/2007	-	Active	NO
18	U72900DL2008PTC176138	WAVESPREE TECHNOLOGIES PRIVATE LIMITED	Director	31/03/2008	31/03/2008	-	Active	NO
19	U25209DL2006PTC156345	AASTHA POLYPLAST PRIVATE LIMITED	Director	24/03/2009	24/03/2009	-	Active	NO
20	U74999DL2007PTC161460	KARMA COILS PRIVATE LIMITED	Director	30/09/2010	25/05/2010	17/10/2011	Active	NO
21	U28113DL2006PTC148559	KARO COILS PRIVATE LIMITED	Director	7/6/2010	7/6/2010	-	Active	NO
22	U50101DL2001PTC110408	GOPAL AUTOMOBILE AGENCIES PRIVATE LIMITED	Director	4/6/2011	4/6/2011	-	Active	NO
23	U74900DL2011PTC212502	KMAC ENVIRONMENTAL SERVICES PRIVATE LIMITED	Director	8/9/2011	8/9/2011	-	Active	NO
24	U74900DL2012PTC238844	VADS CONSULTING PRIVATE LIMITED	Director	13/07/2012	13/07/2012	-	Active	NO

Name :

Mr. Jill Denise Sharp

Designation :

Director

Address :

No. 3, Jalan Serene Kiara, 5 Desa Sri Hartamas, W. Persekutuan Kuala Lumpur, Malaysia – 50480

Date of Birth/Age :

25.02.1970

Date of Appointment :

2911.2010

DIN No.:

03358705

Name :

Mr. David John Topping

Designation :

Alternate director

Address :

C-57, Sushant Lok-I, Gurgaon -122002, Haryana, India

Date of Birth/Age :

20.07.1934

Date of Appointment :

09.11.2005

DIN No.:

03219865

Name :

Mr. Chitranjan Kumar Singhal

Designation :

Alternate director

Address :

1336, Willard St., Houston, Texas, USA-77006

Date of Birth/Age :

14.07.1966

Date of Appointment :

29.06.2010

DIN No.:

00773769

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74999DL2003PTC119528	AUSTIN ENERGY SERVICES PRIVATE LIMITED	Director	24/03/2003	24/03/2003	-	Active	NO
2	U11201DL1985PLC022279	HLS ASIA LIMITED	Alternate director	22/08/2012	9/11/2005	-	Active	NO

Name :

Mr. Brian Patrick Moloney

Designation :

Alternate director

Address :

16002, Algrave Lane Spring, Texas USA-77379

Date of Birth/Age :

29.03.1963

Date of Appointment :

29.11.2010

DIN No.:

03358713

KEY EXECUTIVES

Name :	Mr. Vijay Khera
Designation :	Secretary
Address :	E-65A, Sector-40, Noida – 201301, New Delhi, India
Date of Birth/Age :	08.09.1954
Date of Appointment :	1.04.1994
PAN No. :	AAVPK0255C

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.09.2011

Names of Shareholders	No. of Shares
Halliburton energy service inc - USA	15616000
Austin Energy Services Private Limited	23718864
D.k. Nath	32000
T.K. Dutta	36000
Neeraj Dubey	16000
H.K. Nagpal	16000
M.M.K. Bakshi	16000
Tilak Raj	20000
B.V.S. Murthy	16000
Ashok Kumar Ahuja	24000
Amit Khera	16000
K. Janardhan	8000
Swaminathan Prakash	8000
Jishnu Bardoloi	4000
Inderjit Lal Chhabra	40000
Ghulam Jeelani Bhat	2000
Shuja-Ul-Rehman	1000
Rubin Preet Singh Deol	1000
Diganta Gogoi	1500
Renu Bakshi	5000
Savmit Grover	20000
Bhushan Lal Ahuja	40000
S.K. Sachdeva	30000
Anantha Krishna Sai Kumar Kakani	3000
Ravindra Nath Chakravorty	1000
Subhash Ch. Rao	5000
SushilKalra	17000
Durgesh Jharbade	60000
Shridhar Kadate	58000
Bharat Bhushan	10000
Ashok Kumar Sehgal	12000
Subhash Chander Chhabra	5000
Prakash Pujari	2500
Bijoy Chetri	3000
Gopala Rao Vempati	5000
Sanjay Kumar Gupta	1000
BhupenDhingia	2000
Jitendra Kumar	1000
Rubul Chutia	1500
Vishnu kumar Gupta	500
Prem Prakash Kumar	1500
Anil Kumar K. P.	1500
Vijay Dudeja	1500
Nadini Jharbade	10000
Raghunath Hindupur Karanam	10000
Pravesh Gupta	1000
Da wood Vallibhai Hayat	700
Prakash Rao Raja Rao Kadiri	1000
Jagdish Vaishnav	500
Ravinder Kumar	500
Medini Choudhary	1000
Total	39904064

Names of Allottees	No. of Shares Allotted
Durgesh Jharbade	20000
Shridhar Kadate	20000
Raghunath H.K.	6000
Ashok Sehgal	4000
Medini Choudhary	2000
Sushil Kalra	2000
Bharat Bhushan	2000
Jagdish Vaishnav	1000
Prakash Pujari	1000
Bhupen Dhingia	1000
KP Anil Kumar	1000
Vijay Dudeja	1000
Rubul Chutia	1000
Ravinder Kumar	600
K Prakash Rao	1000
Subhash Chabbra	1000
Vishnu Gupta	1000
Subhash Ch. Rao	4000
Ananth Krishna Saikumar Kakani	2000
Total	71600

As on 19.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	39.13
Bodies corporate	59.44
Directors or relatives of Directors	0.23
Other top fifty shareholders	1.20
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in Wireline Logging, Perforation and related oilfield activities

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Axis Bank Limited, 4/10. Opg House, Asaf Ali Road, New Delhi - 110002, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	0.000	49.900
Working capital loans banks secured	0.000	80.466
Interest accrued due debentures secured	0.000	0.665
Total	0.000	131.031

Banking Relations :	--
Auditors :
Name :	SV Ghatalia and Associates Chartered Accountants
Address :	Golf View Corporate Tower B, Golf Course Road, Sector 42
PAN.:	AACFS6921Q
Holding/ ultimate holding Company :	Austin Energy Services Private Limited CIN No.: U74999DL2003PTC119528
Associates :	· Halliburton Energy Services Inc. USA (HES) · Halliburton Logging LLC, Saudi Arabia, (HES having control) · P.T. Halliburton Logging Services, Indonesia (HES having control) · Halliburton Far East Pte Limited, Singapore (HES having control)

CAPITAL STRUCTURE

After 19.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
40500000	Equity Shares	Rs.10/- each	Rs.405.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39975664	Equity Shares	Rs.10/- each	Rs.399.757 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
40500000	Equity Shares	Rs.10/- each	Rs.405.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39904064	Equity Shares	Rs.10/- each	Rs.399.041 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		399.041	399.041	398.389
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		707.882	506.972	505.818
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1106.923	906.013	904.207
LOAN FUNDS
1] Secured Loans		0.000	131.031	95.167
2] Unsecured Loans		0.000	0.000	125.800
TOTAL BORROWING		0.000	131.031	220.967
DEFERRED TAX LIABILITIES		0.000	0.000	2.430
TOTAL		1106.923	1037.044	1127.604
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		276.674	215.473	577.277
Capital work-in-progress		27.132	143.833	220.743
INVESTMENT		92.500	0.000	0.000
DEFERREX TAX ASSETS		36.980	56.246	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	87.583	102.735	117.091
	Sundry Debtors	445.817	393.103	375.987
	Cash & Bank Balances	203.861	65.153	85.349
	Other Current Assets	2.876	1.931	1.704
	Loans & Advances	921.500	777.145	666.766
Total Current Assets		1661.637	1340.067	1246.897
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	26.057	37.814	49.856
	Other Current Liabilities	62.776	47.294	334.040
	Provisions	899.167	633.467	533.417
Total Current Liabilities		988.000	718.575	917.313
Net Current Assets		673.637	621.492	329.584
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1106.923	1037.044	1127.604

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1087.092	1079.281	922.742
		Other Income	28.167	15.240	40.118
		TOTAL (A)	1115.259	1094.521	962.860
Less	EXPENSES
		Consumption materials changes inventories	54.386	81.074
		Manufacturing service costs	100.212	87.853	363.843
		Employee related expenses	162.543	146.738
		Administrative selling other expenses	127.275	115.304
		TOTAL (B)	444.416	430.969	363.843
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		670.843	663.552	599.017
Less	FINANCIAL EXPENSES (D)		9.625	42.374	10.678
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		661.218	621.178	588.339
Less/ Add	DEPRECIATION/ AMORTISATION (F)		148.102	517.815	406.661
	PROFIT BEFORE TAX (E-F) (G)		513.116	103.363	181.678
Less	TAX (H)		173.166	28.438	60.507
	PROFIT AFTER TAX (G-H) (I)		339.950	74.925	121.171
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		432.521	439.694	345.487
Less	APPROPRIATIONS
		Transfer to General Reserve	34.500	7.500	13.000
		Dividend	119.712	23.911	11.936
		Tax on Dividend	19.328	10.836	2.028
		Interim Dividend	0.000	39.851
	BALANCE CARRIED TO THE B/S		598.931	432.521	439.694
	EARNINGS IN FOREIGN CURRENCY
		Sale of Services	125.088	116.746	52.608
		Others	0.000	0.205	0.772
	TOTAL EARNINGS		125.088	116.951	53.380
	IMPORTS
		Stores, Spare Parts and Consumables	73.357	96.553	103.695
		Capital Goods	107.941	81.572	818.398
	TOTAL IMPORTS		181.298	178.125	922.093
	Earnings Per Share (Rs.)		8.52	1.88	3.05

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	30.48	6.85	12.58
Net Profit Margin (PBT/Sales)	(%)	47.20	9.58	19.69
Return on Total Assets (PBT/Total Assets}	(%)	26.47	6.64	9.96
Return on Investment (ROI) (PBT/Networth)		0.46	0.11	0.20
Debt Equity Ratio (Total Liability/Networth)		0.89	0.94	1.26
Current Ratio (Current Asset/Current Liability)		1.68	1.86	1.36

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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 involved in	----------------------
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	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

NATURE OF OPERATIONS

Subject was incorporated in October 1985 as Gearhart India Private Limited under foreign collaboration (agreement signed in June 1987) with Gearhart N.S. Holdings Inc., USA. Subsequently, as part of the worldwide takeover of Gearhart group by Halliburton, the foreign collaborators were renamed and are presently named as Halliburton Energy Services, Inc. USA (‘HES’). Accordingly, Company was also renamed as HLS India Limited in February 1991, and thereafter to its present name in November 2001. Presently Austin Energy Services Private Limited, the holding company of HLS Asia Limited holds 59.43 percent and HES holds 39.13 percent of the paid up share capital of the Company and the balance being held by others.

The Company is engaged in Wireline Logging, Perforation and related oilfield activities for various national and international oil majors operating in India and certain other countries.

FINANCIAL PERFORMANCE

During Financial Year 2010-11, being the Silver Jubilee year, the company reported its highest ever profit after tax of Rs.339.950 Million as against Rs.74.925 Millions for the previous year, primarily due to substantial reduction in depreciation and interest on term loan. However total income of the Company aggregated to Rs.1115.259 Millions for the year as against Rs.1094.521 Millions for the previous year, registering a marginal increase of about 1.89% only compared to previous year. The long term loans taken by Company in end 2008-09 and early 2009-10, were fully repaid pre maturely during the year.

OPERATIONS

i) During the year (on 18th October, 2010) the Company completed 25 years of its existence. During this period of 25 years, the Company has grown consistently both in terms of financial as well as operational performance, having passed through various milestones.

ii) During the current year, the Company has provided Wireline Logging, Perforation and related services for both onshore and offshore projects of major National and International Oil Companies operating in India which included Oil and Natural Gas Corporation Limited (in Assam, Tripura and Gujarat), Reliance Industries Limited, Gujarat State Petroleum Corporation Limited. (at Cambay onshore and Mumbai offshore), Cairn Energy, Petrogas

E and P LLC (Mumbai offshore), Interlink Petroleum Limited, Oil India Limited, GeoEnpro Petroleum Limited, Selan Exploration and Technology Limited, Jubilant Oil and Gas Private Limited, NIKO Resources Limited and Focus Energy etc. Besides in India, the company has also provided services in Bangladesh to Bangladesh Gas Fields Company Limited, Sylhet Gas Fields Limited and Bangladesh Petroleum Exploration and Production Company Limited and China Petroleum Logging Company Limited

iii) During the period, major achievement for the Company was award of two Contracts for work at exploratory wells at Mumbai Offshore by Gujarat State Petroleum Corporation Limited and Petrogas E and P LLC. In addition to this the Company was also awarded certain new contracts major ones being by M/s Reliance Industries Limited, Interlink Petroleum Limited, GeoEnpro Petroleum Limited, Jubilant Oil and Gas Private Limited for services to be provided in India and by SGFL in Bangladesh.

iv) The operations in all spheres of Company are being run smoothly. Further, the company has continued to assign top priority to Health, Safety, Environment and Quality. The Company’s service indicators for F.Y. 2010-11 worked out to Service Efficiency = 97.66%, Operating Efficiency = 97.36% and End of Job Customers Survey

(EJCS) Rating is above 4 out of 5.

CONTINGENT LIABILITIES (NOT PROVIDED FOR) IN RESPECT OF:

Rs. In Millions

Particular	31.03.2011	31.03.2010
Differential amount of custom duty payable by the Company in case of non-fulfillment of re export obligation against the import of capital goods and spares made at nil/concessional rate of duty. The Company has furnished bank guarantees of Rs 6.617 Millions (Previous year Rs.10.040 Millions) against the same* The management is quite hopeful to meet out re-export obligations	17.760	21.306
Amount of Performance Bank Guarantees given to customers for performance of the contract	152.219	135.140
Disputed income tax demands under appeal. The Company has paid Rs 26.080 Millions (Previous year Rs.122.119 Millions) under protest to the Income tax department against the above demands. In view of favorable orders passed for earlier years by the appellate authorities and during the current year by Hon’ble High Court, the Company is confident of getting these demands deleted in appeals.	130.848	227.883
Entry Tax / Sales Tax demands raised by Sales Tax department. The Company has paid Rs.10.162 Millions (Previous year Rs.2.233 Millions) under protest and furnished bank guarantees of Rs.3.502 Millions (Previous year Rs.2.606 Millions) to the Sale tax department against the above demands. In view of the legal views obtained by the Company, the Company is confident of getting these demands deleted in appeals.	32.884	32.784
Disputed service tax demands/show cause notice under appeal. In view of the legal views obtained by the Company, the Company is confident of getting these demands deleted in appeals.	126.983	126.983
Pending cases with the Income Tax Appellate Tribunal and High Court where the Income Tax Department has referred appeals	Liability not ascertainable
Claims against the Company not acknowledged as debts. The Company is confident that these claims would not be devolved on the Company	4.465	--

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U11201DL1985PLC022279
Name of the company	HLS ASIA LIMITED
Address of the registered office or of the principal place of business in India of the company	109, Aurobindo Place Market, Hauz khas, New Delhi-110016, India asiahls@vsnl.net
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10163000
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	Axis Bank Limited, 4/10. Opg House, Asaf Ali Road, New Delhi - 110002, India geetu.kalra@axisbank.com
Nature of instrument creating charge	Composite Hypothecation deed, current assets, movables, plant and machinery
Date of instrument Creating the charge	03.12.2010
Amount secured by the charge	Rs.132.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per sanctioned terms for Credit facilities ( Currently Interest to be charge @2.9%below BPLR i.e. @ 11.85% p. a. payable at monthly interval). Terms of Repayment repay on demand Margin margin on stock @25%, book debts @ 25% on cash credit Extent and Operation of the charge WCL limit increased to Rs.132.500 Millions, cash credit Limit Rs.100.000 Millions and Bank Guarantee Rs.32.500 Millions secured by first pari passu charge over current assets and fixed assets of the company.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First pari passu hypothecation charge over current assets of the company as Primary security. First pari passu charge with ICICI Bank on other movable fixed assets of the company as Collateral security. First pari passu charge with ICICI Bank over land and building situated at C-2, Sector-57, Noida, Uttar Pradesh as Collateral security.
Date of instrument modifying the charge	02.12.2009
Particulars of the present modification	Now the Working Capital limit has been enhanced from Rs.100.000 Millions to Rs.132.500 Millions, by addition to Bank guarantee limit Rs.32.500 Millions sanctioned by the bank. Secured by first pari passu charge over current assets of the company as prime security. First pari passu charge with ICICI Bank on other movable fixed assets, first pari passu charge with ICICI Bank over land and building situated at C-2 Sector-57, Noida as collateral security.

FIXED ASSETS

· Land and land improvements

· Building

· Office equipments

· Plant and machinery

· Furniture and fixtures

· Motor vehicles

· Computer

AS PER WEBSITE

COMPANY PROFILE

Subject, formerly known as HLS India Limited is a Public Limited Company registered in India, having foreign Collaboration with Halliburton Energy Services Inc., U.S.A, one of the world's largest oilfield service company. HLSA is providing all types of Wire-line Logging (viz. Open-hole, Cased-hole, Production Logging, Completion, Pipe Recovery etc.), Wire line and Tubing Conveyed Perforation, Data Processing/ Interpretation and other related services successfully to E and P Companies since 1987, as per international standards using mainly Halliburton's technology and equipment.

Subject is managed proficiently by Board of Directors that include four Halliburton representatives (two main Directors and two Alternate Directors). Subject is a TEAM of oil field professionals and have experienced Engineers and Managers who have worked internationally and within the country. HLSA’s personnel are trained as per international standards and its motivated teams are committed to deliver the best with integrity, safety, Quality and Operational Excellence

Subject is managed proficiently by Board of Directors that include four Halliburton representatives (two main Directors and two Alternate Directors). HLSA is a TEAM of oil field professionals and have experienced Engineers and Managers who have worked internationally and within the country. HLSA’s personnel are trained as per international standards and its motivated teams are committed to deliver the best with integrity, safety, Quality and Operational Excellence

Subject logging Engineers / Log Analysts have also rendered various logging related services to overseas clients of Halliburton in China, Turkey, Poland, Congo, Zaire, Australia, Indonesia, Singapore, Dubai, Egypt, Kazakhstan, Thailand, Papua New Guinea, Iran and USA etc.

Subject offers state-of-the-art technology in the international Oil and Gas services arena and its applications in various fields. HLSA have been providing Logging, Perforation and related services (L and P) in all types of terrain and formations, including deserts, offshore, remote locations and hostile environments of very high temperature/ pressure / depths, etc. In addition to all standard and high-tech L and P services, HLSA also provide newer value added and industry proven services related to Magnetic Resonance Imaging, Resistivity Imaging, Reservoir Description tool with Fluid Analysis, Reservoir monitoring, Super Deep Penetration Millennium Shaped Charges, Tool Pusher Logging, GEM Elemental Analysis, Casing Patch etc. Subject also provides Training and Equipment Maintenance Support Services.

Subject interpretation packages are consistently proved excellent by testing / production results. HLSA have state-of-the-art Computer systems for powerful, comprehensive and speedier log analysis and interpretation support. HLSA was one of the first L and P service Company in India, to transmit data via Satellite from remote well sites / Customer’s locations to HLSA’s Computer Centres and transmitting the processed data back in minimum turnaround time.

Subject believes in strong Health, Safety and Environment management (HSE) and will protect the health and safety of all persons affected by its business activities, and protect property and environment in all of its operations. HSE excellence is a primary management objective and the responsibility of every HLSA employee. The Company’s HSE policy is implemented through HLSA’s well formulated Manual with the oversight of the HSE Committee, HSE officer and in conjunction with the Company’s code of Business

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 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 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.52.21
UK Pound	1	Rs.84.00
Euro	1	Rs.67.75

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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.