MIRA INFORM REPORT

Report Date :

21.08.2013

IDENTIFICATION DETAILS

Name :	NOVA OLEOCHEM LIMITED (w.e.f. 18.09.2007)
Formerly Known As :	NEELAM OILTRADE LIMITED
Registered Office :	109, 2^nd Floor, Office No. 25, Sheikh Menon Street, Sahiwala Building, Zaveri Bazaar, Mumbai-400002, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.08.2000
Com. Reg. No.:	11-128262
Capital Investment / Paid-up Capital :	Rs. 73.056 Millions
CIN No.: [Company Identification No.]	U51900MH2000PLC128262
TAN No.: [Tax Deduction & Collection Account No.]	MUMN08533A
PAN No.: [Permanent Account No.]	AABCN5066D
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer of Edible Oil, Soaps and Methyl Ester and carried out Manufacturing of Organic and Inorganic Chemicals
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 580000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The liquidity of the company seems to be below average due to large working capital requirements. The external borrowings have increased during 2012. However, trade relations are reported as fair. Business is active. Payments are slow but correct. The company can be considered for business dealings with some caution. .

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Rating = BB-
Rating Explanation	Moderate risk of default
Date	April 2013

Rating Agency Name	ICRA
Rating	Short Term Rating = A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	April 2013

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, 2^nd Floor, Office No. 25, Sheikh Menon Street, Sahiwala Building, Zaveri Bazaar, Mumbai-400002, Maharashtra, India
Tel. No.:	91-22-66392767
Fax No.:	91-22-23428859
E-Mail :	Nopl1@rediffmail.com info@novaoleochem.com
Website :	http://www.novaolechem.com
Corporate Office :	404, Trade World ‘B’ Wing Kamala City, Kamala Mills Compound, S.B.Marg, Lower Parel, Mumbai-400013, Maharashtra, India
Tel. No.:	91-22-61299333
Fax No.:	91-22-61299315
E-Mail :	info@novaoleochem.com

DIRECTORS

As on : 29.09.2012

Name :

Mamta Manoj Varma

Designation :

Managing Director

Address :

250 V P Road, hendre Building, 3/73, Prathana Samaj, Mumbai-400004, Maharashtra, India

Date of Birth/Age :

23.09.1965

Date of Appointment :

02.04.2009

DIN No.:

00408314

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	L99999MH1973PLC016686	TIRUPATI INDUSTRIES (INDIA) LIMITED	Managing director	01-01-06	31-12-90	-	Active	NO
2	U51909MH2004PTC146638	KARANI TRADERS PRIVATE LIMITED	Managing director	31-05-04	31-05-04	-	Active	NO
3	U51900MH2000PLC128262	NOVA OLEOCHEM LIMITED	Managing director	02-04-09	07-04-08	-	Active	NO

Name :

Nandkishore Anantkumar Thakar

Designation :

Director

Address :

A-202, New Sargam, Shirpal Complex, Agashi Road, Virar (West), Mumbai – 401303, Maharashtra, India

Date of Birth/Age :

08.11.1957

Date of Appointment :

31.07.2006

DIN No.:

00751293

Name :

Mr. Ketan Fatehchand Kirani

Designation :

Director

Address :

403, Chandralok, Manav Mandir Road, Walkeshwar, Mumbai -400006, Maharashtra, India

Date of Birth/Age :

20.04.1961

Date of Appointment :

10.05.2007

PAN No.:

AAAPF0745P

DIN No.:

01689493

Name :

Mrs. Alka Ketan Karani

Designation :

Additional Director

Address :

B-304, Chandralok, Manav Mandir Road, Walkeshwar, Mumbai -400006, Maharashtra, India

Date of Birth/Age :

06.07.1961

Date of Appointment :

31.01.2013

DIN No.:

00408341

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Ravindra V Joshi	10100
Dharmesh M Jhaveri	45000
Ketan M Jhaveri	45000
Tirupati Industries (India) Limited, India	2025000
Bhairavi R Joshi	200
Asha A Thakar	200
Mamta Manoj Varma	10100
Ketan Fatehchand Kirani	2500000
Karani Traders Private Limited, India	2500000
Anant N Thakar	10000
Mallika Madhukant Jhaveri	160000
Total	7305600

Equity Share Break up (Percentage of Total Equity)

As on : 29.09.2012

Category	Percentage
Bodies corporate	61.94
Directors or relatives of Directors	37.92
Other	0.14
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Edible Oil, Soaps and Methyl Ester and carried out Manufacturing of Organic and Inorganic Chemicals

PRODUCTION STATUS (31.03.2011)

Particulars	Installed Capacity	Actual Production
Chemicals	450,000 kgs	291,889 Kgs
Soap	NA	75,304 Kgs
Ester	NA	609,298 Kgs
Oil	NA	4,456,405 Kgs

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of Baroda Limited, India

· Dena Bank Limited, India

· HDFC Bank Limited, India

· Standard Chartered Bank Limited India

· State Bank of India, Sir P M Road Branch, Gresham House, Ground Floor, Sir P.M. Road, Fort, Mumbai - 400001, Maharashtra, India

Facilities :

Rs. in millions

SECURED LOANS	31.03.2012	31.03.2011
Term loans from Banks	4.116	0.000
Loans taken for Fixed Assets	0.058	0.378
Working capital loans from banks	142.212	62.832
Total	146.386	63.210

Auditors :
Name :	M/s D.D Shah and Associates Chartered Accountants
Address :	313, Churchgate Chambers, Above Sanman Restaurant 5, New Marine Lines, Churchgate, Mumbai 400020, Maharashtra India
PAN No.:	ALRPS5717J
Associates :	Tirupati Industries (India) Limited, India Cin No. (L99999MH1973PLC016686)

CAPITAL STRUCTURE

As on : 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs. 10/-each	Rs. 75.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7305600	Equity Shares	Rs. 10/-each	Rs. 73.056 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	73.056	73.056
(b) Reserves & Surplus	73.452	58.688
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	146.508	131.744
(3) Non-Current Liabilities
(a) long-term borrowings	14.232	8.385
(b) Deferred tax liabilities (Net)	0.000	0.134
(c) Other long term liabilities	6.025	6.016
(d) long-term provisions	1.026	0.700
Total Non-current Liabilities (3)	21.283	15.235
(4) Current Liabilities
(a) Short term borrowings	142.212	62.832
(b) Trade payables	132.227	102.513
(c) Other current liabilities	21.868	8.681
(d) Short-term provisions	13.267	8.283
Total Current Liabilities (4)	309.574	182.309
TOTAL	477.365	329.288
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	27.013	21.886
(ii) Intangible Assets	30.014	30.016
(iii) Capital work-in-progress	0.026	0.000
(iv) Intangible assets under development	2.288	0.937
(b) Non-current Investments	21.000	21.000
(c) Deferred tax assets (net)	0.162	0.000
(d) Long-term Loan and Advances	3.811	1.758
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	84.314	75.597
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	51.774	81.840
(c) Trade receivables	301.133	150.342
(d) Cash and cash equivalents	23.284	8.918
(e) Short-term loans and advances	16.860	12.591
(f) Other current assets	0.000	0.000
Total Current Assets	393.051	253.691
TOTAL	477.365	329.288

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		71.456
2] Share Application Money		0.000
3] Reserves & Surplus		7.003
4] (Accumulated Losses)		0.000
NETWORTH		78.459
LOAN FUNDS
1] Secured Loans		40.267
2] Unsecured Loans		59.496
TOTAL BORROWING		99.763
DEFERRED TAX LIABILITIES		0.246
TOTAL		178.468
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		50.701
Capital work-in-progress		2.244
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	46.692
	Sundry Debtors	57.403
	Cash & Bank Balances	16.935
	Other Current Assets	0.771
	Loans & Advances	18.277
Total Current Assets		140.078
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.638
	Other Current Liabilities	0.000
	Provisions	7.266
Total Current Liabilities		14.904
Net Current Assets		125.174
MISCELLANEOUS EXPENSES		0.349
TOTAL		178.468

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	840.008	537.092	298.977
		Other Income	3.711	0.367	0.281
		TOTAL (A)	843.719	537.459	299.258
Less	EXPENSES
		Cost of Material Consumed	736.081	496.959
		Changes in Inventories	16.440	(20.748)	280.728
		Employees Benefits Expenses	7.943	7.113
		Other Expenses	35.499	28.529
		TOTAL (B)	795.963	511.854	280.728
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		47.756	25.605	18.530
Less	FINANCIAL EXPENSES (D)		23.088	8.547	8.659
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		24.668	17.058	9.871
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.801	1.756	1.591
	PROFIT BEFORE TAX (E-F) (G)		22.867	15.302	8.280
Less	TAX (I)		7.836	4.888	2.880
	PROFIT AFTER TAX (G-I) (J)		15.031	10.413	5.400
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		13.014	6.265	0.941
Less	APPROPRIATIONS
		Transfer to General Reserve	1.143	0.333	0.000
		Proposed Dividend	0.223	0.282	0.173
		Taxes on Dividend	0.045	0.046	2.679
	BALANCE CARRIED TO THE B/S		26.635	13.014	6.265
	EARNINGS IN FOREIGN CURRENCY
		Exports on FOB value basis	NA	11.207	8.456
	TOTAL EARNINGS		NA	11.207	8.456
	IMPORTS
		Raw Materials	NA	29.490	11.854
	TOTAL IMPORTS		NA	29.490	11.854
	Earnings Per Share (Rs.)		2.06	1.44	0.77

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.78	1.94	1.80
Net Profit Margin (PBT/Sales)	(%)	2.72	2.85	2.77
Return on Total Assets (PBT/Total Assets}	(%)	5.04	4.98	4.35
Return on Investment (ROI) (PBT/Networth)		0.16	0.12	0.11
Debt Equity Ratio (Total Debt /Networth)		1.07	0.54	1.27
Current Ratio (Current Asset/Current Liability)		1.27	1.39	9.40

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

NOTE :

The registered address of the company has been changed from 10-B 301, Alica Nagar, Lokhandwala Complex, Kandivali (East), Mumbai, Maharashtra, India to the present address (w.e.f.07.04.2008)

BACKGROUND

During the year, the company has outsourced the manufacturing activity in the oil, soaps and methyl ester and carried out manufacturing of organic and inorganic chemicals from factory located at Badlapur.

OPERATIONS:

During the year, the Turnover of the Company increased to Rs.839.000 Millions from Rs.536.800 Millions in the previous year thereby registering a robust increase of 64%. Profit after Tax for the year increased to Rs.15.000 Millions from Rs.10.400 Millions in the previous year. The higher turnover and profit is mainly due to higher capacity utilization and rational use of available resources. The Company’s plan to enhance its installed capacity of manufacturing Metallic Chemicals is progressing satisfactorily. Necessary finance for long term capital expansion is being organized and will be finalized soon. Company’s soap division has introduced various new luxury body care products under the brand name FANTASSY and the response from market is encouraging.

UNSECURED LOANS:

Rs. in millions

Particulars	31.03.2012	31.03.2011
Term loans from Banks	5.922	4.691
Term Loans From Others	4.136	3.316
Total	10.058	8.007

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10315139	05/05/2012 *	245,000,000.00	STATE BANK OF INDIA	SIR P. M. ROAD BRANCH, GRESHAM HOUSE, GROUND FLOOR, SIR P. M. ROAD, FORT, MUMBAI, Maharashtra - 400001, INDIA	B40464794

* Date of charge modification

FIXED ASSETS

• Building,
• Plant Machinery
• Office Equipments
• Computer Equipments
• Vehicles

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. 63.73
UK Pound	1	Rs. 99.79
Euro	1	Rs. 85.07

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		33

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.