MIRA INFORM REPORT

Report Date :

10.05.2013

IDENTIFICATION DETAILS

Name :	SETHIA OILS LIMITED
Registered Office :	143, Cotton Street, Kolkata – 700007, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	24.03.1986
Com. Reg. No.:	21-040396
Capital Investment / Paid-up Capital :	Rs. 26.250 Millions
CIN No.: [Company Identification No.]	U15316WB1986PLC040396
PAN No.: [Permanent Account No.]	AADCS7771E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Edible Rice Bran Oil
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 857500
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well- established company having a fine track record. The financial position of the company is sound. It has achieved better growth in its income from operation and profits during 2012. Directors are reported as well-experienced and knowledgeable businessmen. Trade relations are decent. Business is active. Payments terms are regular and as per commitment. The company can be considered good 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 – 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

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 :	143, Cotton Street, Kolkata – 700007, West Bengal, India
Tel. No.:	91-33-22685738
Fax No.:	91-33-22300248
E-Mail :	sethiaoils@vsnl.com
Website :	www.sethiaoils.com
Factory :	Pemra, Jotram, Burdwan -713 101, West Bengal, India
Tel. No.:	91.342.2541434 / 2541435
Fax No.:	91.342.2541274
E-Mail :	sethiaoils@sethiaoils.com

DIRECTORS

As on 24.09.2012

Name :	Mr. Ashok Sethia
Designation :	Whole-time director
Address :	5, Janki Shah Road, Kolkata – 700022, West Bengal, India
Date of Birth/Age :	10.05.1957
Date of Appointment :	09.10.1986
DIN No.:	00082365
Name :	Mr. Alok Sethia
Designation :	Managing director
Address :	5, Janki Shah Road, Kolkata – 700022, West Bengal, India
Date of Birth/Age :	01.01.1959
Date of Appointment :	09.10.1986
DIN No.:	00082393
Name :	Mr. Bridhichand Sethia
Designation :	Director
Address :	C/o Sethia Oil Industries Limited Lakhimpur Bypass Road Sitapur – 261001 Utter Pradesh, India
Date of Birth/Age :	04.07.1934
Date of Appointment :	09.08.2007
DIN No.:	00082035

KEY EXECUTIVES

Name :	Mr. Gopinath Khandelwal
Designation :	Secretary
Address :	5, Madan Chatterjee Lane, Kolkata – 700007, West Bengal, India
Date of Birth/Age :	25.12.1954
Date of Appointment :	01.12.1988
PAN No. :	AFSPK4190E

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2012

Names of Shareholders	No. of Shares
Sethia Bahadurmal	37500
Sethia Bridhichand	100000
Sethia Ashok	143750
Sethia Alok	87500
Sethia Madhulika	100000
Sethia Manju	262500
Sethia Namrata	43750
Sethia Nita	68750
Sethia Raikanwari	12500
Sethia Santosh	43750
Sethia Kanchan	218750
Sethia Singh Vijay	125000
Sethia Dilip	100000
Sethia Madhuri	75000
Sethia Pradip	175000
Sethia Devi Pukhraj	48750
Sethia Sanjeev	106250
Sethia Kumar Sushil	8750
Sethia Deepak	62500
Sethia Kumar Vinay	50000
Sethia Sumit	155000
Bridhi chand Sethia and Sons	75000
Vijay Singh Sethia and Sons (HUF)	75000
Sethia Anant	12500
Sethia Akash	18750
Sethia Nikhil	45000
Vinay Kumar Sethia and Sons (HUF)	118750
Sethia Yugesh	17500
Deepak Sethia and Sons (HUF)	37500
Alok Sethia (HUF)	75000
Sushil Kumar Sethia and Sons (HUF)	50000
Sethia Vikas	50000
Sethia Nitisha	25000
Total	2625000

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	41.96
Other top fifty shareholders	58.04
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Edible Rice Bran Oil

Products :

ITC Code No.	Production Description
151590.11	Rice Bran Oil
230220.1	De-olied Rice Bran
210	Hydrogenated Vegetable Oli Vanaspati

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity *	Actual Production
Rice Bran Solvent Hxtracted Oil	MT	15000	8656.894
Deoiled Cake / Extractions	MT	60000	33623.498
Refined Oil and Vanaspati	MT	36000	9436.507

* As certified by management and accepted by the Auditors

GENERAL INFORMATION

No. of Employees :

Not available

Bankers :

State Bank of India, Burdwan Main Branch, Burdwan – 713101, West Bengal, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Borrowing from Foreign Institutional Agencies	49.887	44.369
Other Loans and Advance	2.453	2.453
Total	52.340	46.822

Banking Relations :	--
Auditors :
Name :	D.K. Chajer and Company Chartered Accountant
Address :	5, Old Court House Street, Kolkata – 700001, West Bengal, India
PAN.:	AABFD5743N
Associates (As on 31.03.2011) :	Sethia Oils Industries Limited

CAPITAL STRUCTURE

As on 24.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2625000	Equity Shares	Rs.10/- each	Rs. 26.250 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		26.250	26.250	26.250
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		188.137	173.538	164.177
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		214.387	199.788	190.427
LOAN FUNDS
1] Secured Loans		52.340	46.822	30.393
2] Unsecured Loans		0.000	0.000	2.453
TOTAL BORROWING		52.340	46.822	32.846
DEFERRED TAX LIABILITIES		14.207	15.644	17.680
TOTAL		280.934	262.254	240.953
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		72.143	77.828	84.644
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	50.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	80.045	83.650	100.173
	Sundry Debtors	56.972	29.089	13.452
	Cash & Bank Balances	3.752	3.095	7.641
	Other Current Assets	111.333	76.017	0.000
	Loans & Advances	72.058	58.019	52.408
Total Current Assets		324.160	249.870	173.674
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.318	1.622	2.880
	Other Current Liabilities	1.050	1.079	0.000
	Provisions	110.001	62.743	64.485
Total Current Liabilities		115.369	65.444	67.365
Net Current Assets		208.791	184.426	106.309
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		280.934	262.254	240.953

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1089.377	763.855	769.868
		Other Income	10.880	9.303	6.751
		TOTAL (A)	1100.257	773.158	776.619
Less	EXPENSES
		Cost of material consumed	787.759	628.890
		Purchase of stock-in-trade	29.126	0.000
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	0.004	(24.614)
		Employee benefit	20.512	19.167
		Other expenses	187.908	121.099
		TOTAL (B)	1025.309	744.542	711.209
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		74.948	28.616	65.410
Less	FINANCIAL EXPENSES (D)		1.275	0.863	0.989
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		73.673	27.753	64.421
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.992	6.955	7.010
	PROFIT BEFORE TAX (E-F) (G)		66.681	20.798	57.411
Less	TAX (H)		21.574	5.477	19.534
	PROFIT AFTER TAX (G-H) (I)		45.107	15.321	37.877
Less/ Add	INCOME TAX FOR EARLIER YEAR		0.000	0.142	(1.195)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		142.363	136.441	119.262
Less	APPROPRIATIONS
		Transfer to General Reserve	4.575	3.439	4.148
		Dividend	26.250	5.250	13.125
		Tax on Dividend	4.258	0.852	2.230
	BALANCE CARRIED TO THE B/S		152.387	142.363	136.441
	EARNINGS IN FOREIGN CURRENCY		NA	65.832	80.449
	Earnings Per Share (Rs.)		25.40	7.92	14.43

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.099	1.98	4.88
Net Profit Margin (PBT/Sales)	(%)	6.12	2.72	7.46
Return on Total Assets (PBT/Total Assets}	(%)	16.82	6.35	22.22
Return on Investment (ROI) (PBT/Networth)		0.31	0.10	0.30
Debt Equity Ratio (Total Debt /Networth)		0.24	0.23	0.17
Current Ratio (Current Asset/Current Liability)		1.55	3.82	2.58

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	No

OPERATION

The overall performance of the Company during the year was satisfactory. Although the processing of Rice Bran was down at 38049 MT as against 42280 MT last year, the production of Refined Rice Bran oil was higher at 11722 MT as against 9437 MT last year. The sales during the year rose to Rs. 1084.000 Millions as compared to 762.900 Millions last year recording a growth of 42% over previous year. Exports of Deoiled Rice Bran recorded a threefold increase from 77.600 Millions last year to 233.800 Millions during the year under review. As a result of improved performance the company posted an increased profit before tax of Rs. 666.81 lacs as compared to Rs. 20.798 Millions last year.

.

FUTURE OUT LOOK

The future outlook remains very competitive as many new solvent extraction plants and rice bran oil refineries have come up in West Bengal recently and a few more are in the pipeline.

FIXED ASSETS :

· Freehold Land

· Building – Factory

· Building – Others

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Office Equipments

· Computers

· Pollution Control Equipment

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. 54.24
UK Pound	1	Rs. 84.30
Euro	1	Rs. 71.36

INFORMATION DETAILS

Report Prepared by :

ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	7
--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
DEFAULTER
--RBI	YES/NO	No
--EPF	YES/NO	No
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.