MIRA INFORM REPORT

Report Date :

14.04.2011

IDENTIFICATION DETAILS

Name :	FINOLEX INDUSTRIES LIMITED
Formerly Known As :	FINOLEX PIPES LIMITED
Registered Office :	Gate No.399, Village Urse, Taluka Maval, District Pune – 410 506, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	28.03.1981
Com. Reg. No.:	11-24153
CIN No.: [Company Identification No.]	L40108PN1981PLC024153
TAN No.: [Tax Deduction & Collection Account No.]	KLPF00119A
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange
Line of Business :	Manufacturers of PVC Pipes

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 23000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. 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.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION DENIED BY

Name :	Mr. Dhiwar
Designation :	Accounts Departments
Date :	09.02.2011

LOCATIONS

Registered Office :	Gate No.399, Village Urse, Taluka Maval, District Pune – 410 506, Maharashtra, India
Tel. No.:	91-2114-237251
Fax No.:	91-2114-237252
E-Mail :	investors@finolexind.com aa@finolexind.com
Website :	www.finolex.com
Corporate Office :	P-14/1, Rajiv Gandhi Infotech Park, MIDC, Phase – I, Hinjewadi, Pune – 411057, Maharashtra India.
Tel. No.:	91-20-27408200
Mktg. Tel No.:	91-20-27408254 / 27408267 /59
Fax No.:	91-20-7477217 / 7475232 / 2293 2939 / 2293 2233/44
E-Mail :	fil@finolexind.com pipes@finolexind.com aa@finolexind.com kbd@finolexind.com pvc@finolexind.com investors@finolexind.com
Factory 1:	D1/ 10, M.I.D.C., Chinchwad, Pune – 411 019, Maharashtra, India
Tel. No.:	91-20-27474381/ 4384/ 27477817/ 27408200
Fax No.:	91-20-27477217/ 27475232
E-Mail :	aa@finolexind.com kbf@finolexind.com fil@finolexind.com pipes@finolexind.com pvc@finolexind.com
Factory 2 :	Pawas Road, Pawas, Ratnagiri 415612, Maharashtra, India
Tel. No.:	91-2352-238027 / 28 / 29 / 30 / 31
Fax No.:	91-2352-238033 / 238045
E-Mail :	jsa@rtg.finolexind.com
Branch Office :	Located at: Ahmedabad Bangalore Chennai Cochin Indore New Delhi Secunderabad Mumbai Coimbatore Kolkata

DIRECTORS

AS ON 31.03.2010

Name :	Mr. P. P. Chhabria
Designation :	Non Executive Chairman
Name :	Mr. K. P. Chhabria
Designation :	Managing Director
Name :	Mr. Prakash P. Chhabria
Designation :	Deputy Managing Director
Name :	Mr. J. S. Arora
Designation :	Director (Operations)
Name :	Mr. S. S. Dhanorkar
Designation :	Assistant Managing Director and Chief Operating Officer
Name :	Mr. M. G. Bhide
Designation :	Independent Director
Name :	Mr. S. N. Inamdar
Designation :	Independent Director
Name :	Dr. N. A. Kalyani
Designation :	Independent Director
Name :	Mr. S. S. Marathe
Designation :	Independent Director
Name :	Mr. P. Subramaniam
Designation :	Assistant Managing Director and Chief Financial Officer
Name :	Mr. K. N. Atmaramani
Designation :	Independent Director
Name :	Mr. Proshanto Banerjee
Designation :	Independent Director
Name :	Mr. S. S. Math
Designation :	Director (Manufacturing)
Name :	Dr. Vijay P Bhatkar
Designation :	Director
Name :	Mr. Sunil pathak
Designation :	Director
Name :	Mr. P D Karandikar
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Anil Atre
Designation :	Company Secretary and General Manager (Administration)
Name :	Mr. Dhiwar
Designation :	Accounts Departments

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 As on 31.12.2010

Names of Shareholders	No. of Shares	Percentage of holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1,268,836	1.02
Bodies Corporate	63,374,505	51.10
Sub Total	64,643,341	52.12
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	64,643,341	52.12
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1,856,178	1.50
Financial Institutions / Banks	21,919	0.02
Insurance Companies	296,031	0.24
Foreign Institutional Investors	4,228,173	3.41
Sub Total	6,402,301	5.16
(2) Non-Institutions
Bodies Corporate	6,634,620	5.35
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	30,857,444	24.88
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	12,801,104	10.32
Any Others (Specify)	2,687,657	2.17
Clearing Members	91,766	0.07
NRIs/OCBs	1,609,064	1.30
Trusts	3,625	-
Partnership Firms	4,515	-
Corporate Body - Broker	546,010	0.44
Individual - Margin Trading Account	77	-
Employees	432,600	0.35
Sub Total	52,980,825	42.72
Total Public shareholding (B)	59,383,126	47.88
Total (A)+(B)	124,026,467	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	124,026,467	-

BUSINESS DETAILS

Line of Business :

Manufacturers of PVC Pipes

Products :

Item Code No. (ITC Code)	Product Description
39042110	S PVC Resin
39172210	E PVC Resin
39172390	PVC Pipes
39174000	PVC Fittings

Brand Name :

• "Fine"
• "Flexibles"
• "O"

PRODUCTION STATUS (As on 31.03.2010):-

Particulars	Unit	Installed Capacity	Actual Production
PVC Resin	M.T.	260000	249867
PVC Pipes	M.T.	114163	107115
PVC Fittings	M.T.	735	7405

Note:-

· Installed capacities are certified by the Managing Director and relied upon by the Auditors.

· Production of pipes & fittings Includes production on job work basis.

GENERAL INFORMATION

No. of Employees :

1000 (approximately)

Bankers :

v Bank of India

v Bank of Baroda, India

v Bank of Maharashtra

v Citibank N.A.

v Corporation Bank

v State Bank of India

v ICICI Bank Limited

v BNP Paribas

v Bank of Nova Scotia (Scotia Bank),

Ground Floor, Mittal Tower B Wing, Nariman Point, P O Box 11507, Mumbai-400021, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Debentures
1000 - 12.25% Secured Redeemable Non- convertible
(1000) – Debentures of Rs 1000000 each	1000.000	1000.000
500 – 9.50% Secured Redeemable Non-convertible		0
(Nil) - Debentures of Rs 1000000 each	500.000	0.000
750 Secured Redeemable Non convertible	0.000	750.000
(750) Detachable Debt Warrants	0.000	71.068
Term Loans From Banks	345.248	608.936
Working Capital Borrowings from Banks	208.946	119.137
Total	2054.194	2549.141

Notes :

1) Amount repayable within a year Nil. (Rs. 1059.020 millions)

Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Other Loans and Advances (Short Term)
Acceptances-Banks	5990.682	5539.902
Deferred Sales Tax Loan	112.894	0.000
Inter Corporate Deposits	177.300	35.000
Total	6280.876	5574.902

Banking Relations :

--

Auditors :

Name :

B.K. Khare and Company

Chartered Accountants

Associates :

• Finolex Cables Limited
• Finolex Plasson Industries Limited
• Finprop Advisory Services Limited
• Pawas Port Limited

Other Companies

• Akash-Tatva Investments Private Limited
• Coated Fabrics Private Limited
• Corrugated Box Industries (I) Private Limited
• Finolib Chemicals Private Limited
• Orbit Electricals Private Limited
• Kaya Software Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.10/- each	Rs.1500.000 millions
	Unclassified Share Capital		Rs.850.000 millions
	Total		Rs.2350.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
124026467	Equity Shares	Rs.10/- each	Rs.1240.264 millions

Subscribed & Paid-up Capital

No. of Shares	Type	Value	Amount
124026467	Equity Shares	Rs.10/- each	Rs.1240.264 millions
	Less : Amount in Arrears, other than from Directors		Rs.0.154 million
	Total		Rs.1240.110 millions

Note:

1) 367,650 Equity Shares have been allotted for consideration other than in cash to the shareholders of the erstwhile Finolex Plastics Private Limited pursuant to the scheme of amalgamation.

2) 5,511,093 Equity Shares have been issued as fully paid up Bonus Shares by Capitalisation of General Reserve
.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		1240.110	1240.087	1240.015
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4636.726	3759.495	4299.972
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5876.836	4999.582	5539.987
LOAN FUNDS
1] Secured Loans		2054.194	2549.141	1581.713
2] Unsecured Loans		6280.876	5574.902	5335.747
TOTAL BORROWING		8335.070	8124.043	6917.460
DEFERRED TAX LIABILITIES		734.540	760.430	980.598
TOTAL		14946.446	13884.055	13438.045
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8356.357	5660.150	5570.097
Capital work-in-progress		663.794	2991.390	2094.834
INVESTMENT		3263.807	2645.895	2521.429
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3397.492	1706.460	2044.589
	Sundry Debtors	362.146	492.058	763.437
	Cash & Bank Balances	827.433	411.095	409.962
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1956.335	2425.109	4186.520
Total Current Assets		6543.406	5034.722	7404.508
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1767.942	1727.614	0.000
	Current Liabilities	1619.841	529.455	1333.337
	Provisions	493.135	191.033	2819.486
Total Current Liabilities		3880.918	2448.102	4152.823
Net Current Assets		2662.488	2586.620	3251.685
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		14946.446	13884.055	13438.045

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	15129.084	15291.255	16755.025
		Other Income	0.000	0.000	0.000
		TOTAL (A)	15129.084	15291.255	16755.025
Less	EXPENSES
		Manufacturing Expenses	10107.502	11744.115	11326.568
		Salaries, Wages, Bonus, etc.	413.784	376.050	346.666
		Administrative Expenses	1785.325	2709.505	784.594
		Excise Duty	0.000	0.000	2401.680
		TOTAL (B)	12306.611	14829.670	14859.508
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2822.473	461.585	1895.517
Less	FINANCIAL EXPENSES (D)		466.066	468.266	303.193
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2356.407	(6.681)	1592.324
Less/ Add	DEPRECIATION/ AMORTISATION (F)		616.741	583.225	574.577
	PROFIT BEFORE TAX (E-F) (G)		1739.666	(589.906)	1017.747
Less	TAX (H)		416.428	(210.964)	306.197
	PROFIT AFTER TAX (G-H) (I)		1323.238	(378.942)	711.855
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		355.106	629.248	NA
Add	Transfer from Debenture Redemption Reserve		0.000	250.000	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	200.000	NA	NA
		Debenture Redemption Reserve	200.000		NA
		Dividend	372.100	124.100	NA
		Tax on Dividend	63.300	21.100	NA
	BALANCE CARRIED TO THE B/S		842.944	355.106	NA
	IMPORTS
		Raw Materials	8720.965	8928.459	8969.448
		Stores & Spares	48.952	18.556	18.334
		Capital Goods	19.165	148.884	94.364
	TOTAL IMPORTS		8789.082	9095.899	9082.146
	Earnings Per Share (Rs.)		10.67	(3.06)	--

QUARTERLY RESULTS

PARTICULARS	30.06.2010 (1^st Quarter)	30.09.2010 (2^nd Quarter)	31.12.2010 (3^rd Quarter)
Net Sales	4769.240	3439.620	5311.000
Total Expenditure	3947.520	3042.390	4542.130
PBIDT (Excl OI)	821.720	397.230	768.870
Other Income	31.010	95.640	52.410
Operating Profit	852.730	492.870	821.280
Interest	139.770	154.690	156.950
Exceptional Items	(290.570)	89.040	50.960
PBDT	422.390	427.220	715.290
Depreciation	186.550	190.340	185.920
Profit Before Tax	235.840	236.880	529.370
Tax	76.720	77.920	173.500
Profit After Tax	159.120	158.960	355.870
Net Profit	159.120	158.960	355.870

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	8.74	(2.47)	5.58
Net Profit Margin (PBT/Sales)	(%)	11.49	(3.85)	8.90
Return on Total Assets (PBT/Total Assets}	(%)	11.67	(5.51)	7.84
Return on Investment (ROI) (PBT/Networth)		0.29	(0.12)	0.19
Debt Equity Ratio (Total Liability/Networth)		2.20	2.26	1.61
Current Ratio (Current Asset/Current Liability)		1.68	2.05	1.56

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject formerly Finolex Pipes Limited, incorporated in 1981 a part of the Finolex group (FG) is the largest PVC pipe manufacturer in the country. It is also the second public venture of the FG after Finolex Cables (FCL). The company offers a wide range of PVC pipes and fittings suitable for diverse applications in agriculture, housing, telecommunication and for other segments of the industry.  

The company latter integrated backward to manufacture PVC resin which finds application in pipes, fittings, electric cables, packaging film, etc. For this the company came out with a rights issue to part-finance its project to manufacture 0.130 Million TPA of PVC resin at Pawas, Maharashtra. It also entered into a technical collaboration with UHDE, Germany, for licensing and technical know-how of Hoechst's process to manufacture PVC resin and provide basic engineering. 

The main raw material of the company is Ethylene Di-Chloride (EDC) apart from Ethylene. The company depends heavily on imported EDC for the manufacture of PVC. 

Finolex Polymers is a wholly-owned subsidiary of the company. Pipes division of the company has been granted Quality Systems Certification Licence as per IS/ISO 9002 by the Bureau of Indian Standards. The PVC plant of the company has undertaken work to obtain ISO 14001 (Environment Management System) certification. It has divested its holdings in Finolex Polymers, subsequent to this effect the Finolex Polymers has ceased to be a subsidiary of the company.  

The company has proposed to expand PVC manufacturing capacity at its Ratnagiri plant. It has already in the process of increasing the capacity PVC pipes at Ratnagiri. The company is also planning to increase 26000 mts p. a at Ratnagiri taking the total installed capacity of pipes to 52000 mts p.a. The Company is also proposed to expand its PVC capacity at Ratnagiri from 130 000 tons to 260 000 tons. In this regard it has signed agreements with OXY Vinyl, USA, Aker Kvaerner, Netherlands and with Udhe India Limited. The expansion project is progressing as per Schedule. Civil work is in the last stage of completion and more than 85% of the equipments have been ordered which are arriving as per schedule. 

In April, 2002 the buy-back of equity shares to the extent of Rs.553.945 million consisting 19978977 equity shares at average price of Rs.27.73 per share. It has also made a second buy back of 2829128 equity shares at average price of Rs.30.83 per share at a consideration of Rs.87.2 million. During the year 2003, the Company successfully completed its second buy back of shares by buying and extinguishing 5200347 Equity Shares at an average price of Rs.34.24 per share at a consideration of Rs.178.072 million. With this buyback, the total paid up share capital of the company decreased to Rs.1240.179 million as on 27th July 2003. 

During the year 2004-05, the company's jetty at Ratnagiri has achieved the distinction of being an ISPS Code (International Code for the Security of Ships and of Port Facilities) compliant Jetty and this is the first private ports to receive this distinction. Also KPMG Quality Registar (Accredited by the Dutch Council for Accreditation has approved company's Ethylene Terminal Facility for registration to ISO 9001:2000 and has issue a certificate of registration for the scope of port management for handling liquid and cryogenic cargoes. 

In the year 2004-05, the company has increased its installed capacity of PVC Pipes by 1450 MT. With this expansion, the total installed capacity of PVC Pipes has increased upto 59400 MT.

MANAGEMENT DISCUSSION AND ANALYSIS

Financial Review

The Company has two divisions, i.e., Poly Vinyl Chloride [PVC] and PVC Pipes and Fittings. The operating profit for both the divisions has been sharply higher as compared to the previous year.

Global Economy and Effect on the Company

The extreme volatility experienced in the global markets during 2008-09 moderated to some extent during the year . However, uncertainty still looms large on the global business horizon. The developed economies of USA and Europe have pumped in trillions of dollars to stabilize their economies. The long term effects of these measures are yet to be seen. Volatility in commodity prices and foreign exchange rates is the order of the day. Though there are emerging signs of recovery, these are still not strong enough to instil confidence in the system as a whole. The economic crisis has hit countries like Greece and Iceland very badly and there is speculation about some other countries also facing similar crises. A delayed and sub-normal monsoon added to the overall uncertainty prevailing in the Indian economy at the beginning of the year . Despite this the Indian economy posted a remarkable recovery. The GDP growth tentatively assessed at over 6% is one of the highest in the world. The rural economy in India is fast growing giving an impetus to the demand for various products. The Company's products, i.e., PVC Pipes and Fittings are mainly sold in the rural markets. This segment has seen volume growth of more than 20% during the year .

Industry Outlook

PVC Resin Business

The domestic demand for PVC Resin grew by almost 25% during the year . This is on the background of a net shortage which had been prevailing in the Indian market for the past few years. The total imports of PVC Resin into India grew to almost 800,000 MT, and it is expected that this shortage will only grow in the years to come. The International prices of PVC Resin increased from around USD 800/MT at the beginning of the year to over USD 1,000/MT by the end of the year. Despite a corresponding increase in the raw material prices, the Company was able to improve its margins because of its ability to pass on the cost increases to the market fairly quickly.

PVC Pipes Business

The demand for PVC Pipes has been very strong during the year . The bulk of the Company's PVC Pipes production is sold in the rural markets for Agriculture and Irrigation. Given the Company's vast network spread across the length and breadth of the country, the Company has been able to reach even the remotest villages where the demand for PVC Pipes exists. Despite the slow-down in the Building Construction Industry, the Company was able to post a strong growth of almost 35% in the sale of Plumbing and Sanitation Pipes. This is entirely due to the strong brand equity enjoyed by the Company. The Company has successfully completed the expansion of PVC Pipes manufacturing capacity from 100,000 MT p.a. to 140,000 MT p.a. The full capacity will be available during 2010-11. Considering the strong demand for its products, the Company is now contemplating further increase in PVC Pipes capacity at a new location.

Finance
The interest and finance charges for the year were Rs. 466.066 millions as against Rs. 468.266 millions for the previous year. 
 
Corporate Governance
Pursuant to clause 49 of the listing agreements entered into with the stock exchanges, a separate section on corporate governance and a certificate obtained from the auditors of the Company regarding compliance with the conditions of corporate governance are forming part of this annual report.

Shifting of Registered Office

Pursuant to the resolution passed at the twenty-sixth annual general meeting held on 22nd June, 2007, effective 4th July, 2008, the registered office of the Company was shifted to Gat No.399, Urse, Taluka Maval, District Pune 410 506.

Power Project

During the year, power project at Ratnagiri made a significant progress. Company has received all the permissions/approvals. Power plant installation is targeted to be completed by end of November, 2009. Power plant shall be fully operational in the fourth quarter of 2009-2010.

Breakwater Project

In view of the business scenario, the Breakwater project is temporarily put on hold and is expected to be resumed in due course.

Award for Excellence in Energy Conservation and Management

Maharashtra Energy Development Agency, a Government of Maharashtra undertaking has conferred on PVC plant, Ratnagiri the second prize for excellence in energy conservation and management recognising the efforts taken by all concerned in practising energy efficiency and conservation measures.

Setting up Gas based Power Plant at Chinchwad, Pune

The Company proposes to set up a 30 MW Gas based Power Plant at Chinchwad, Pune. The concept of power generation through Gas based Power Plant is comparatively a low cost project having a very short gestation period and an eco-friendly source of energy. Besides this social and environmental aspect, it makes great business sense to take up this venture.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010

(Rs. In Millions)

Particulars	Quarter Ended	Nine Months ended
	31.12.2010	31.12.2010
	Unaudited	Unaudited
1. (a)Net sales/ Income from Operations	5842.759	14947.976
(b) Other operating income	9.772	18.777
Total Income [1 (a) + 1 (b)]	5852.531	14966.753
2. Expenditure
a) (Increase)/decrease in stock in trade	(438.979)	10.894
b) Consumption of raw materials	3982.357	8700.269
c) Cost of Traded Goods	112.909	305.985
d) Power and Fuel	403.454	1175.765
e) Excise Duty	541.428	1446.796
f) Employee cost	119.772	361.209
g) Depreciation	185.917	562.807
h) Other expenditure	362.726	978.026
i) Total	5269.584	13541.751
3. Profit/ (Loss) from operations before other income, interest and Exceptional items (1-2)	582.947	1425.002
4. Other income	52.411	179.065
5. Profit / (Loss) before interest and Exceptional items (3+4)	635.358	1604.067
6. Interest/ Finance Charges	156.948	451.411
7. Profit / (Loss) after interest but before Exceptional items (5-6)	478.410	1152.656
8. Exceptional items – Income/ (Expenditure)	50.955	(150.582)
9. Profit/ (Loss) from Ordinary Activities before tax (7+8)	529.365	1002.074
10. Tax Expenses	173.500	328.139
11. Profit/ (Loss) from Ordinary Activities after tax (9-10)	355.865	673.935
12. Extraordinary Item (Net of Tax expense)	0.000	0.000
13. Net profit/ (loss) for the period	355.865	673.935
14. Paid up equity share capital (Face value of Rs.10 per share)	1240.264	1240.264
15. Reserves (excluding revaluation reserves)	-	-
16. # Basic and Diluted EPS (Rs.)	2.87	5.43
17. Public shareholding
- Number of shares	59383126	59383126
- Percentage of shareholding	47.88	47.88
18. Promoter and Promoter Group Shareholding
a) Pledged / Encumbered
- Number of Shares	Nil	Nil
- Percentage of Shares (as a % of total shareholding of promoter & promoter group)	Nil	Nil
- Percentage of Shares (as a % of total share capital of the Company)	Nil	Nil
b) Non-Encumbered
- Number of Shares	64643341	64643341
- Percentage of Shares (as a % of total shareholding of promoter & promoter group)	100.00	100.00
- Percentage of Shares (as a % of total share capital of the Company)	52.12	52.12

Note:

1. The company’s foreign exchange exposure is substantially hedged. Loss on exchange fluctuation / derivatives is disclosed as exceptional items.
2. The promoters of the company have not pledged any of the shares held by them in the company.
3. One complaint was pending at the beginning of the quarter. Six complaints were received and redressed during the quarter. One complaint is pending at the end of the quarter since the matter is sub-judice.
4. The “Limited Review” of the financial results of the company for the quarter ended 31.12.2010 has been completed by the statutory auditors.
5. The above results have been reviewed by audit committee and approved by the board at its meeting held on 04.02.2011.
6. previous periods figures have bee regrouped wherever necessary to conform to the current periods classification.

SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED

Rs. In Millions

Sr. No	Particulars	Quarter Ended 31.12.2010 Unaudited	Nine Months ended 31.12.2010 Unaudited
	Segment revenue
	Net sale / income from each segment:
	PVC	4210.720	10903.824
	PVC pipes and fittings	2438.607	7062.764
	Power	512.168	1059.774
	Total	7161.495	19026.362
	Less: Inter segment
	Revenue	1308.964	4059.609
	Net sales / income from operations	5852.531	14966.753
	Segment results
	Profit before tax and interest from each segment:
	PVC	180.333	730.127
	PVC pipes and fittings	237.476	574.809
	Power	217.549	299.552
	Total	635.358	1604.488
	Less:
	Interest	156.948	541.411
	Other un-allocable expenditure	89.159	414.420
	Add:
	Other un-allocable income	140.114	263.417
	Total profit before tax	529.365	1002.074
	Capital employed
	Segment assets
	Segment liabilities:
	PVC	7202.747	7202.747
	PVC pipes and fittings	1726.461	1726.461
	Power	3295.407	3295.407
	Other than segments	4195.855	4195.855
	Total	16420.470	16420.470

TRADE REFERENCE:

v Alok Equipments Private Limited

v Chlorination Systems Engineering

v Figi Industries

v Gaurav Agencies

v General Foundries

v Hot Watt Industries

v Jade Rubber Products Private Limited

v Leak-Proof Engineering Private Limited

v Pioneer Engineering Industries

v R S B Chemical Industries

v Solid Packaging Industries

Contingent Liabilities:

i) Guarantees given by the Company, Rs. 192.331 millions (Rs. 112.467 millions)

ii) Claims against the Company not acknowledged as debt:

a) Liabilities in respect of income tax matters for which the Company has succeeded in appeal but Income Tax Department has gone in further appeal and exclusive of the effect of similar matters in respect of pending assessments, Rs. 3.037 millions (Rs. 3.037 millions).

b) Liabilities in respect of income tax matters for which the Company has gone in further appeal and exclusive of the effect of similar matters in respect of pending assessments, Rs. 88.775 millions (Rs. 71.690 millions).

c) Excise/Customs/Service Tax in respect of which either show cause notice is received or the Company/Department is in appeal, Rs. 247.844 millions (Rs. 236.059 millions).

d) Amounts claimed by banks in respect of derivative transactions which are under dispute not acknowledged as debt Rs. 2947.416 millions (Nil).

Fixed Assets:

v Land (freehold and leasehold)

v Buildings

v Plant and Machinery

v Furniture and Fixtures

v Vehicles

v Aircraft

v Assets on Lease

WEBSITE DETAILS:

PROFILE:

In July 1945, two young brothers P.P Chhabria and K.P Chhabria came to Pune from Karachi in search of a livelihood and within six months set up a small shop selling electrical cables. The retail business became quite successful. A sizeable order in the mid 1950's from the Defence Department for wire harnesses for trucks and tanks bolstered their confidence and they decided to manufacture Cables, themselves.

Starting as a small-scale industrial unit in 1957, they manufactured PVC insulated cables for the automobile industry. Subject brand was born from "Fine" and "Flexibles" and "O" with an electric arc across it - signifying the electrical cable business the company was in. Their relentless search for growth and doughty perseverance saw them through some difficult times and in 1972 the enterprise turned into a limited company.

Since then, there has been no looking back and following a public offering in July 1983, Finolex Cables Limited embarked on a continuous process of expansion and modernization which enabled it to become the most diversified largest cable manufacturer in the country.

Their relentless quest for growth saw the brothers establishing subject in 1981. The company sought to manufacture Rigid PVC Pipes and Fittings at Pune, which find large-scale application in the agriculture sector. In a shrewd move towards backwards integration, the company has set up a PVC resin manufacturing facility at Ratnagiri on the west coast of India.

The early nineties saw the Finolex Group expanding into new business domains to manufacture Optic Fibre Cables and Copper Rods. Today the Group turnover exceeds Rs.20 Billion (about US $ 450 million)

FCL and FIL are the two group companies whose equity shares are listed on the Bombay Stock Exchange and National Stock Exchange. Global Depository Receipts of FCL are also listed on the Luxembourg Stock Exchange. Professionally managed, with continuous updating of technology and strict quality controls, company strives for maximum customer satisfaction. Over the years, it has attained a significant position on the industrial map of India.

Subject is the largest PVC pipe manufacturer in India. The Pipes division of Subject is the first Indian IS/ISO 9002 manufacturer. Production capacity of the Pipes division is 40,000 metric tonnes per annum spread over its two ultra modern plants at Pune and Ratnagiri. Subject offers a wide range of PVC pipes and fittings, for diverse applications in agriculture, housing, telecom, industry, etc., ranging between 20 mm diameter to 400 mm diameter. Subject also manufactures specialty pipes and fittings, namely SWR (Soil, Waste and Rain Water) pipes and fittings for construction industry. The Pipes division of Subject has won the PLEXCONCIL "Top Exporter Award" on five occasions.

Subject has commissioned its PVC plant near Ratnagiri (350 Kms. South of Mumbai) on the West Coast of Maharashtra State. Subject is one of the largest PVC manufacturers in India. The 130,000 metric tonnes PVC plant has been set up in technical collaboration with Uhde GmbH of Germany under technology licence from Hoechst AG. Subject manufactures suspension PVC as well as emulsion/paste PVC.

Subject's PVC plant enjoys many locational advantages, the important one being proximity to the market. Further, the Pipes division of Subject and Subject's associated concern consumes captively about 45,000 metric tonnes of PVC per annum; a distinct advantage available only to Subject.

As a part of its PVC complex, Subject has set up an open sea cryogenic jetty. The Finolex jetty is the first of its kind in the private sector in India. It is located near the PVC plant and is presently utilized for importing the feedstock for manufacture of PVC as well as for importing LPG.

Awards

Over a period of last many years Subject has received various awards and has set its own benchmark in the area of excellence. National safety Council Award - Maharashtra Chapter, Prashansha Patra from National safety Council, are few of these awards. Finolex also has great awareness in its environmental responsibilities and has taken many efforts towards addressing the environmental issues. For its efforts it has been honored by the Green Tech Environment Excellence Gold Award, It is not only in the area of manufacturing and Environment that Finolex has tried to excel but it has also got various other Government recognition such as  Sammanpatra from Govt. of India, Department of Revenue, Central excise, Custom and service tax etc. for outstanding contribution to central excess revenues. Finolex will continue to strive in various areas of excellence and achieve many more awards in the future.

Press Release

Finolex offers advanced solutions in plumbing and Sanitation

March, 2008. Finolex Industries Limited, the largest manufacturer of PVC pipes in the country has received a highly encouraging response from the plumbing industry across the country for its UV stabilized plumbing system.

This plumbing system comprises of UV stabilised White pipes in sizes from 1/2" to 4" in schedule 40 and schedule 80 series as per ASTM D 1785 standards and fittings in white colour as per ASTM D 2467. The UV stabilized plumbing system, has solvent cement jointing system which in layman's language is known as 'cold welding '.

This type of jointing system results in a permanent homogeneous leak proof joint.

Going a step further and with advancement in technology, Finolex is now set to introduce a Plumbing system which is complete LEAD FREE and hence the undue apprehension of migration of lead from the walls of the pipes into the water flowing through these pipes get eliminated. To start with, lead free plumbing system would be introduced in selected parts of the country, eventually launching it PAN INDIA.

According to Mr. V V Khandekar, President –“ Finolex Industries has already created a market for PVC plumbing pipes over the last 15 years especially down South where PVC plumbing pipes are being used regularly. Now the market is growing substantially in other regions and the company is committed to bring the benefits of technology to its customers”.

Finolex Sanitation System, (PVC-U SWR Pipes and Fittings) for the construction industry, are uniquely designed products which are manufactured conforming to IS:13592. The products are available in three sizes: 75mm, 110mm and 160mm diameter and offer a choice of Solvent Cement or Rubber Ring Jointing. Finolex SWR systems are UV stabilized, rodent repellent and chemically inert to all acids and alkalies.

“Finolex Industries has been present for last many years mainly as supplier of pipes for agricultural sector and now with introduction of its PVC plumbing and sanitation systems, plans to further expand by increasing its dealer and sub-dealer network across the whole country” – Mr. Khandekar added.

Finolex – marching ahead in innovation and technology, bringing forth-new products, and thus going hand in hand with the Construction Industry of progressive INDIA….

and as always … GETTING PEOPLE TOGETHER !

About Finolex Industries Limited

Finolex Industries Limited (FIL), is the flagship Company of the Rs.25000.000 millions. Finolex group and the largest manufacturer of PVC Pipes and Fittings in India. The Pipes division of FIL is the first Indian Pipe manufacturer to be awarded IS/ISO 9001:2000 Certification. FIL offers a wide range of PVC Pipes and Fittings from 20mm to 400mm diameter for diverse application like Agriculture, Housing, Telecom, Industry, etc.

The production capacity of the Pipes division of FIL is spread over its two ultramodern Plants at Pune and Ratnagiri. FIL is in the process of increasing this capacity further, in the current financial year.

FIL is also the only PVC Pipes manufacturer to have its own Resin Plant. This ultramodern PVC Resin plant is located at Ratnagiri. The capacity of this plant was increased from 1,30,000 TPA to 2,60,000 TPA during the quarter ended March, 2006.

FIL has a Nation wide distribution network with more than 15,000 dealers and retailers spread across the country

“Finolex Industries, the leader in supply of PVC-U pipes and fittings for the agriculture sector for last 30 years, has further expanded by increasing its dealer/sub dealer network across the country with introduction of PVC Plumbing and Sanitation since the last 10 years ” – Mr. Khandekar added.

About Finolex Industries Limited

Finolex Industries Limited (FIL), is the flagship Company of the Rs. 25000.000 millions, Finolex group and the largest manufacturer of PVC Pipes and Fittings in India. The Pipes division of Finolex Industries limited is the first Indian Pipe manufacturer to be awarded IS/ISO 9001:2000 Certification. FIL offers a wide range of PVC Pipes and Fittings from 20mm to 400mm diameter for diverse application like Agriculture, Construction, Telecom, Industry, etc.

The production capacity of the Pipes division of Finolex Industries limited is spread over its two ultramodern Plants at Pune and Ratnagiri. Finolex Industries limited is in the process of increasing this capacity further by commissioning a new works at URSE – near the Pune Mumbai expressway.

FIL is also the only PVC Pipes manufacturer to have its own Resin Plant. This ultramodern PVC Resin plant is located at Ratnagiri with a capacity of 2,60,000 TPA.

FIL has a Nation wide distribution network with more than 15,000 dealers and retailers spread across the country.

Finolex – marching ahead in innovation and technology, bringing forth-new products, and thus going hand in hand with the Construction Industry of progressive INDIA….

and as always … GETTING PEOPLE TOGETHER !

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] 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.44.48
UK Pound	1	Rs.72.37
Euro	1	Rs.64.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	Yes
--LITIGATION	YES/NO	No
--OTHER ADVERSE INFORMATION	YES/NO	No
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	No
--EXPORT ACTIVITIES	YES/NO	Yes
--AFFILIATION	YES/NO	Yes
--LISTED	YES/NO	Yes
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.