MIRA INFORM REPORT

Report Date :

14.05.2013

IDENTIFICATION DETAILS

Name :	SAH PETROLEUMS LIMITED
Registered Office :	406/7, Embassy Centre, Nariman Point, Mumbai 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	06.07.1983
Com. Reg. No.:	11- 030372
Capital Investment / Paid-up Capital :	Rs.220.000 Millions
CIN No.: [Company Identification No.]	L23201MH1983PLC030372
TAN No.: [Tax Deduction & Collection Account No.]	MUMS35820B
PAN No.: [Permanent Account No.]	AABCS5295B
Legal Form :	A Public Limited Liability Company, Company's Shares are Listed on Stock Exchange
Line of Business :	Manufacturing of Industrial Oils and Lubricants.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 4910000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears tremendous dip in the profitability during 2012. However, the company operates on its own funds. Financial position of the company appears to be good. Trade relations are reported as decent. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered 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.

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	A2 [Non Fund Based Limits]
Rating Explanation	Good intrinsic capacity for timely payment of financial commitment.
Date	01.10.2012

Rating Agency Name	FITCH
Rating	BBB [Fund Based Limits]
Rating Explanation	Adequate capacity for payment of financial commitment.
Date	01.10.2012

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.

INFORMATION DECLINED BY

Name :	Mr. Sandeep Kedia
Designation :	Head of Finance
Contact No.:	91-22-66301911
Date :	13.05.2013

LOCATIONS

Registered Office :	406/7, Embassy Centre, Nariman Point, Mumbai 400021, Maharashtra, India
Tel. No.:	91-22-66301911 / 22873097
Fax No.:	91-22-22875751
E-Mail :	ipol@sahpetroleums.com
Website :	www.sahpetroleums.com
Factory :	1) Plot No. 5 to 14, Behind Dewan and Shah Industrial Estate, Village: Valiv, Vasai (East), District Thane, Maharashtra, India 2) Survey No. 97 / 2, Daman Industrial Estate, Kadaiya, Daman Pataliya Road, Nani Daman – 396 210, India
Regional Office :	BF-173, Sector 1, Near Baisakhi, Saltlake City, Kolkata – 700064, West Bengal, India  Tel.: 91 - 33 - 4004 6564 / 21062001 Fax: 91 - 33 - 4004 6566 E-mail: splkolkata@sahpetroleums.com 428/2, Rani Khera Road, Opposite Dhana Builders, Mundka, New Delhi – 110041 India Tel. 91 - 11 - 2834 3152 / 54 / 3259 6427 Fax. 91 - 11 - 2834 2998 E-mail: spldelhi@sahpetroleums.com M2, Prince Centre, 709 – 710, Pathari Road, Anna Salai, Chennai – 600006, Tamilnadu, India Tel.: 91 - 44 - 2829 7056 Fax: 91 - 44 - 2829 7057 E-mail: splchennai@sahpetroleums.com
Branch Office :	Located At: Bangalore Chandigarh Chennai Faridabad Hyderabad Indore Kolkata New Delhi Pune Vadodara

DIRECTORS

AS ON 31.03.2012

Name :	Mr. Rajendra Sah
Designation :	Chairman
Name :	Mr. Vivek Sah
Designation :	Managing Director
Name :	Mr. Aditya Sah
Designation :	Joint Managing Director
Name :	Mr. Bruno P.Y.G. Seghin
Designation :	Director
Name :	Mr. Noshir B. Dubash
Designation :	Independent, Non Executive Director
Name :	Mr. Alok D. Sukhani
Designation :	Independent, Non Executive Director
Name :	Mr. Pradip C. Shah
Designation :	Independent, Non Executive Director
Name :	Mr. Vinay G. Rao
Designation :	Independent, Non Executive Director

KEY EXECUTIVES

Name :	Mr. D Malla Reddy
Designation :	Company Secretary
Name :	Mr. Sandeep Kedia
Designation :	Head of Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2013

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	10930292	24.84
Sub Total	10930292	24.84
(2) Foreign
Bodies Corporate	27300000	62.05
Sub Total	27300000	62.05
Total shareholding of Promoter and Promoter Group (A)	38230292	86.89
(B) Public Shareholding
(1) Institutions
Venture Capital Funds	157095	0.36
Foreign Institutional Investors	1038860	2.36
Sub Total	1195955	2.72
(2) Non-Institutions
Bodies Corporate	468617	1.07
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	3621742	8.23
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	339670	0.77
Any Others (Specify)	143724	0.33
Clearing Members	57215	0.13
Non Resident Indians	86509	0.20
Sub Total	4573753	10.39
Total Public shareholding (B)	5769708	13.11
Total (A)+(B)	44000000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	44000000	0.00

SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE SECURITIES) OF PERSONS BELONGING TO THE CATEGORY “PROMOTER AND PROMOTER GROUP”

Sl. No.	Name of the Shareholder	Details of Shares held
		No. of Shares held	As a % of grand total
1	Aditya Sah	20,80,153	4.73
2	Rajendra Sah	15,65,935	3.56
3	Vivek Sah HUF	12,50,000	2.84
4	Shobha Sah	27,04,000	6.15
5	Vivek Sah	20,80,204	4.73
6	Aditya Sah HUF	12,50,000	2.84
7	NAF India Holdings Limited	2,73,00,000	62.05
	Total	3,82,30,292	86.89

SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE SECURITIES) OF PERSONS BELONGING TO THE CATEGORY “PUBLIC” AND HOLDING MORE THAN 1% OF THE TOTAL NUMBER OF SHARES

Sl. No.	Name of the Shareholder	Details of Shares held
		No. of Shares held	As a % of grand total
1	Asia Advantage Fund	1038860	2.36
	Total	1038860	2.36

BUSINESS DETAILS

Line of Business :

Manufacturing of Industrial Oils and Lubricants.

Brand Names :

“IPOL®TM”

Products :

ITC Code	Product Description
27101980	Lubricating Petroleum Oil
34031900	Lubricating Preparation Cutting Oil
27101990	Lubricating Grease

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Actual Production
Oil and Lubricants	Ltrs	62027476

GENERAL INFORMATION

No. of Employees :	Information denied by the management.
Bankers :	Axis Bank Limited, Nariman Point, Mumbai - 400 021, Maharashtra, India Dena Bank, Sachivalaya Corner, Mumbai - 400 021, Maharashtra, India ICICI Bank, Mumbai, Maharashtra, India IDBI Bank, Mumbai, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	N.D. Daga and Company Chartered Accountants
Address :	5/2, Tardeo AC Market Building, Tardeo Road, Mumbai – 400 034, Maharashtra, India
Investor Company-Controlling Interest :	NAF India Holdings Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
44000000	Equity Shares	Rs.5/- each	Rs.220.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
44000000	Equity Shares	Rs.5/- each	Rs.220.000 Millions

NOTES:

THE DETAILS OF SHAREHOLDERS HOLDING MORE THAN 5% SHARES:

PARTICULAR	AS ON 31.03.2012
	No. of Shares	% Age Held
NAF India Holdings Limited	27300000	62.05%
Rajendra Sah	3565935	8.104%
Shobha Sah	2704000	6.145%

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		220.000	220.000	220.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1009.877	1009.802	854.233
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1229.877	1229.802	1074.233
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		24.789	21.980	12.394
TOTAL		1254.666	1251.782	1086.627
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		351.500	358.947	345.772
Capital work-in-progress		0.797	0.000	11.387
Less: Revaluation Reserve		(31.886)	(32.871)	(33.855)
INVESTMENT		455.225	410.361	411.578
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	873.556	790.709	561.809
	Sundry Debtors	1312.406	1059.498	766.448
	Cash & Bank Balances	293.770	229.754	193.040
	Other Current Assets	62.049	61.105	0.000
	Loans & Advances	219.637	179.842	182.745
Total Current Assets		2761.418	2320.908	1704.042
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2105.447	1650.871	231.890
	Other Current Liabilities	171.413	148.375	1117.621
	Provisions	5.528	6.317	2.786
Total Current Liabilities		2282.388	1805.563	1352.297
Net Current Assets		479.030	515.345	351.745
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1254.666	1251.782	1086.627

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	4800.695	3655.987	2780.573
		Other Income	45.402	20.233	120.545
		TOTAL (A)	4846.097	3676.220	2901.118
Less	EXPENSES
		Cost of Materials Consumed	3732.953	2813.447
		Purchases Of Stock-in-Trade	127.691	82.129
		Employee Benefit Expenses	150.116	128.339	2876.243
		Other Expenses	541.988	471.021
		Changes in Inventories Of Finished Goods	(14.726)	(29.940)
		TOTAL (B)	4538.022	3464.996	2876.243
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		308.075	211.224	24.875
Less	FINANCIAL EXPENSES (D)		281.521	17.651	65.907
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		26.554	193.573	(41.032)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		22.260	20.712	17.242
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		4.294	172.861	(58.274)
Less	TAX (H)		3.707	14.725	2.940
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		0.587	158.136	(61.214)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		496.631	341.556	403.284
Less	APPROPRIATIONS
		Proposed Dividend	0.440	2.200	0.440
		Tax on Dividends	0.072	0.365	0.074
		Residual Dividend	0.001	0.002	0.000
		Transfer to General Reserve	0.500	0.494	0.000
	BALANCE CARRIED TO THE B/S		496.205	496.631	341.556
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods (FOB Basis)	209.990	184.269	141.028
	IMPORTS
		Raw Materials	2860.845	2089.293	1684.676
		Capital Goods	1.289	0.000	0.000
	TOTAL IMPORTS		2862.134	2089.293	1684.676
	Earnings / (Loss) Per Share (Rs.)		0.01	3.59	(1.39)

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	1176.900	1020.000	1001.700
Total Expenditure	1139.600	950.900	956.100
PBIDT (Excl OI)	37.200	69.100	45.600
Other Income	09.700	55.500	09.000
Operating Profit	46.900	124.600	54.600
Interest	144.100	0.000	76.000
PBDT	(97.200)	124.600	(21.400)
Depreciation	05.400	05.500	05.500
Profit Before Tax	(102.700)	119.200	(26.900)
Profit After Tax	(102.700)	119.200	(26.900)
Net Profit	(102.700)	119.200	(26.900)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.01	4.30	(2.11)
Net Profit Margin (PBT/Sales)	(%)	0.09	4.73	(2.09)
Return on Total Assets (PBT/Total Assets}	(%)	0.14	6.45	(2.83)
Return on Investment (ROI) (PBT/Networth)		0.00	0.14	(0.05)
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.21	1.28	1.25

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2012 [Rs. in millions]	31.03.2011 [Rs. in millions]	31.03.2010 [Rs. in millions]
Sundry Creditors	2105.447	1650.871	231.890

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	No
8]	No. of employees	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	No
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

BUSINESS RESULTS:

Net Sales/Income from operations for the year ended 31^st March, 2012 amounted to Rs. 48000.695 Millions as compared to Rs. 3655.987 Millions for last year, registering a growth of 31.31%. The profit for the year stood at Rs. 0.587 Million against the profit of Rs. 158.136 Millions in the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS:

INDUSTRY STRUCTURE AND DEVELOPMENT:

Subject is one of the manufacturers of industrial lubricants in India and manufacturing wide range of industrial and automotive lubricants, specialties and process oils etc., under the brand name of “IPOL®TM” at Vasai and Daman plants. This industry has much growth potential and is growing globally.

OVERVIEW:

The financial statements have been prepared in compliance with the requirements of the Companies Act, 1956 and made on a prudent and reasonable basis, in order that the financial statements reflects a true and fair manner the form and substance of transactions, and reasonably present our state of affairs and profit for the year.

The Company’s Net Sales/Income from operations for the year ended 31st March, 2012 amounted to Rs. 4800.695 Millions as compared to Rs. 3655.987 Millions for last year, registering a growth of 31.31%. The profit for the year stood at Rs. 0.587 Million against the profit of Rs. 158.136 Millions in the previous year. Considering the performance of the company, the Board of Directors recommended dividend Rs. 0.01 per share (0.2%) on the equity shares of Rs. 5/- each for the financial year 2011-12.

INDUSTRY OUTLOOK:

The public sector undertakings have dominated the Indian lubes market upto 1993 and they had a collective market share of approximately 89%, but after 1993, the Government has liberalized and decentralized the norms of import of key raw material, determination of pricing regulations and reduction in the custom duties on import of base oil. Due to liberalization policy, the fair competition took place between the private players and public sector undertakings. In today’s position, around more than 20 companies are operating in the Indian lubricants market. Until the 1980, lubricants produced in the country were basically simple blends based on low and medium level technologies. More sophisticated lubricants were imported and these amounted for a very small market. The entry of multinationals has led to complex and premium brands being introduced into the Indian market. The Indian lubricants market is the fourth largest in the world.

MARKET SEGMENTS:

There are two major segments of the lubricants industry. The automotive lubricants segment, which has an approximate market share of 65% and the industrial lubricants segment accounting for the rest.

CONTINGENT LIABILITIES:

Particulars	31.03.2012 [Rs. in millions]	31.03.2011 [Rs. in millions]
Guarantees given by Banks	10.174	2.363
Estimated amount of contracts / capital commitments	2.006	5.887
Claims against the Company not acknowledged as debts:
(i) Excise matters	9.409	9.409
(ii) Sales Tax matters	129.984	131.079

FIXED ASSETS:

• Land
• Buildings
• Furniture and Fixtures
• Plant and Machinery
• Vehicles
• Fork Lift
• Computer Systems

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31^ST DECEMBER, 2012

Rs. in Millions

Sr. No.	Particular	Quarter Ended		Nine Months Ended
		31.12.2012 (Unaudited)	30.09.2012 (Unaudited)	31.12.2012 (Unaudited)
1.	Net Sales/Income from Operations	998.471	1014.922	3182.690
	Other Operating Income	3.180	5.108	15.871
	Total Income From Operations (Net)	1001.651	1020.030	3198.561
2.	Expenditure
	Cost of materials consumed	802.107	822.895	2574.902
	Changes in inventories of finished goods, work in progress and stock in trade	(12.129)	(37.487)	(40.024)
	Employee benefits expenses	45.088	37.903	120.903.
	Depreciation and amortization expenses	5.472	5.474	16.383
	Other expenses	121.033	127.627	390.896
	Total Expenses	961.571	956.412	3063.060
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	40.080	63.618	135.501
4.	Other Income	9.005	10.808	29.477
5.	Profit Before Interest and Exceptional Items (3+4)	49.085	74.426	164.978
6.	Interest	76.000	(44.731)	175.390
7.	Profit After Interest but before Exceptional Items (5-6)	(26.915)	119.156	(10.412)
8.	Exceptional Items	--	--	--
9.	Profit from Ordinary Activities before Tax (7+8)	(26.915)	119.156	(10.412)
10.	Tax Expense	0.000	0.000	0.000
11.	Net Profit from Ordinary Activities after Tax (9-10)	(26.915)	119.156	(10.412)
12.	Extraordinary Item (net of expense)	--	--	--
13.	Net Profit for the period (11-12)	(26.915)	119.156	(10.412)
14.	Paid-up Equity Share Capital (Face Value of Rs.5/- Each)	220.000	220.000	220.000
15.	Reserves Excluding Revaluation Reserve	--	--	--
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	(0.61)	2.71	(0.24)
	b) Basic and diluted EPS after extraordinary items	(0.61)	2.71	(0.24)
17.	Public Shareholding
	-Number of Shares	5769708	5769708	5769708
	- Percentage of Shareholding	13.11	13.11	13.11
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	Nil	Nil	Nil
	b) Non Encumbered
	- Number of Shares	38230292	38230292	38230292
	- 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)	86.89	86.89	86.89

Particulars	Quarter Ended 31.12.2012
Pending at the beginning of the quarter	Nil
Received during the quarter	Nil
Disposed of during the quarter	Nil
Remaining unresolved at the end of the quarter	Nil

NOTES:

1. The above Financial Results were reviewed by the Audit committee and approved by the Board of Directors at their respective meetings held on 14 February, 2013.

2. The Company is manufacturing in only one segment: “Lubricants”.

3. Figures for the period(s) have been regrouped / rearranged, wherever necessary.

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.54.92
UK Pound	1	Rs.84.44
Euro	1	Rs.71.32

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		52

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.