1. Summary Information

		Country	India
Company Name	Sumeet Industries Limited	Principal Name 1	Mr. Shankarlal Somani
Status	Moderate	Principal Name 2	Mr. Raj Kumar Somani
		Registration #	04-11049
Street Address	504, Trividh Chamrers, Opposite Fire Station, Ring Road, Surat – 395002, Gujarat, India
Established Date	01.08.1988	SIC Code	--
Telephone#	91-261-2328902	Business Style 1	Manufacturer
Fax #	91-261-2334189/ 2310196	Business Style 2	--
Homepage	http://www.sumeetindustries.com	Product Name 1	Polyester Chips
# of employees	150 (Approximately)	Product Name 2	Polyester Filament Yarn
Paid up capital	Rs.499,951,600/-	Product Name 3	Polyester POY/ FDY
Shareholders	Shareholding of Promoter and Promoter Group- 63.61%, Public Shareholding- 36.39%	Banking	Bank of Baroda
Public Limited Corp.	Yes	Business Period	22 years
IPO	Yes	International Ins.	--
Public Enterprise	Yes	Rating	B (30)
Related Company
Relation	Country	Company Name	CEO
--	--	--	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	1,040,796,000	Current Liabilities	136,537,000
Inventories	646,610,000	Long-term Liabilities	2,466,722,000
Fixed Assets	1,859,257,000	Other Liabilities	186,010,000
Deferred Assets	0,000,000	Total Liabilities	2,789,269,000
Invest& other Assets	48,078,000	Retained Earnings	280,520,000
		Net Worth	805,472,000
Total Assets	3,594,741,000	Total Liab. & Equity	3,594,741,000
Total Assets (Previous Year)	2,148,882,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	3,638,226,000	Net Profit	108,486,000
Sales(Previous yr)	1,577,868,000	Net Profit(Prev.yr)	37,971,000

MIRA INFORM REPORT

Report Date :

23.06.2011

IDENTIFICATION DETAILS

Name :	SUMEET INDUSTRIES LIMITED
Formerly Known As :	SUMEET SYNTHETICS
Registered Office :	504, Trividh Chamrers, Opposite Fire Station, Ring Road, Surat – 395002, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	01.08.1988
Com. Reg. No.:	04-11049
Capital Investment / Paid-up Capital :	Rs.499.952 Millions
CIN No.: [Company Identification No.]	L45200GJ1988PLC011049
TAN No.: [Tax Deduction & Collection Account No.]	SRTS00011E
PAN No.: [Permanent Account No.]	AAECS2256B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Polyester Chips, Polyester Filament Yarn, Polyester POY/ FDY, Polypropylene Yarn and Menthol Products.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 3000000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported as slow but correct. The company can be considered for small to mediocre 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

LOCATIONS

Registered Office :	504, Trividh Chamber, Opposite Fire Station, Ring Road, Surat. – 395 002, Gujarat, India.
Tel. No.:	91-261 – 2328902
Fax No.:	91-261 – 2334189 / 2310196
E-Mail :	sumeetindus@yahoo.com info@sumeetindustries.com sumeet@sumeetindustries.com silshare@yahoo.com sumeetindustries@drdc.net recruitment@sumeetindustries.com
Website :	http://www.sumeetindustries.com
Factory :	Block No. 289, 291, 292, Village : Karanj, Taluka : Mandvi, District : Surat – 394 110, Gujarat, India
Tel. No.:	91-2621-234923
Branches :	901, Vishwa Deep Building, District Centre, Janakpuri, New Delhi – 110058, India
Tel. No.:	91-11-25554808, 25554773

DIRECTORS

(AS ON 31.03.2010)

Name :	Mr. Shankarlal Somani
Designation :	Chairman
Name :	Mr. Raj Kumar Somani
Designation :	Managing Director
Name :	Mr. Vinod Kumar Ladia
Designation :	Director
Name :	Mr. Mangilal Lahoti
Designation :	Director
Name :	Mr. Dinesh Sharan Khare
Designation :	Director
Name :	Mr. Bhagchand Chordia
Designation :	Director
Name :	Mr. Sumeet Kumar Somani
Designation :	Director
Name :	Mr. Devi Prasad Saboo
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Anil Kumar Jain
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	9,122,328	22.81
Bodies Corporate	15,967,420	39.92
Sub Total	25,089,748	62.73
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	25,089,748	62.73
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	11,645	0.03
Sub Total	11,645	0.03
(2) Non-Institutions
Bodies Corporate	3,617,630	9.05
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	8,413,374	21.04
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2,607,786	6.52
Any Others (Specify)	254,977	0.64
Clearing Members	25,422	0.06
Non Resident Indians	181,890	0.45
Trusts	1,000	-
Directors & their Relatives & Friends	46,665	0.12
Sub Total	14,893,767	37.24
Total Public shareholding (B)	14,905,412	37.27
Total (A)+(B)	39,995,160	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)	39,995,160	-

BUSINESS DETAILS

Line of Business :

Manufacturer of Polyester Chips, Polyester Filament Yarn, Polyester POY/ FDY, Polypropylene Yarn and Menthol Products.

Products :

Item Code No. (ITC Code)	54023900
Product Description	P.P. and Poly POY/ Texturised/ Twisted Yarn
Item Code No. (ITC Code)	33012590
Product Description	Menthol Product

GENERAL INFORMATION

No. of Employees :

150 (Approximately)

Bankers :

v Bank of India

v Bank of Baroda

v IDBI Bank Limited

Facilities :

Secured Loans	31.03.2010	31.03.2009
	Rs. in Millions
Bank of Baroda Cash Credit	3.570	52.471
Bank of Baroda Packing Credit (PCFC)	0.000	50.903
Bank of Baroda (FCNR Working capital Loan)	0.000	164.475
IDBI Bank Limited Cash Credit	12.764	62.699
Bank of Baroda (in FCNR- B)	17.179	28.699
Vehicle Loan*	10.089	2.126
ECB From BOB NEW YORK *	51.860	92.057
Term Loan ( GBPP )	24.078	31.500
Term Loan (WJL)	8.073	12.114
ECB Loan (BOB and BOI)	898.000	789.872
HDFC (Term Loan)	0.000	0.309
LIC of India	10.947	10.949
Buyer Credit	1233.047	0.000
Total	2269.607	1298.174

NOTES :

(1) Working Capital borrowings (Item 1 to 13 above) are secured by first pari passue charge on all current assets of the company and 2^nd pari passue charge on fixed assets of the company. Buyers credit secured by letter of comfort issued by BOB and IDBI by earmarking working capital limit/ FDR

(2) Term Loan (Item No.5, 6, 7, 8, and 9, 10) is secured by first charge on all fixed assets of the company and 2^nd pari passue charge on all current assets of the company.

(3) Vehicle loan (Item No. 6) are secured by hypothecation of vehicles.

(4) All the above facilities (Item No. 1 to 5 and 7 to 10) are further secured by personal guarantee Mr. Shankar Somani, Mr. Raj Kumar Somani, Mr. Sumeet Kumar Somani Mrs. Ganga Devi Somani and corporate guarantee of sitaram prints Private Limited and mortgage of Fixed Assets of M/s. Sitaram Prints Private Limited and mortgaged of fixed assets of M/s. Sitaram Prints Private Limited and Residence Bunglow of Mr. Shankar Somani and Mrs. Ganga Devi Somani.

Unsecured Loans	31.03.2010	31.03.2009
	Rs. in Millions
Agency Deposits	1.994	1.869
Loan From Corporate Bodies	195.121	102.019
Loan From Directors	0.000	0.018
Total	197.115	103.906

Banking Relations :	--
Auditors :
Name :	Pradeep Singhi and Associates Chartered Accountants
Address :	Surat, Gujarat, India
Internal Auditor :
Name :	RRA and Company Chartered Accountants
Address :	Surat, Gujarat, India

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
4,00,00,000	Equity Shares	Rs.10/- Each	Rs.400.000 Millions
1,00,00,000	6% Non Convertible Redeemable Preference shares	Rs.10/- Each	Rs.100.000 Millions
	Total		Rs.500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,99,95,160	Equity Shares	Rs.10/- Each	Rs.399.952 Millions
1,00,00,000	6% Non Convertible Redeemable Preference shares	Rs.10/- Each	Rs.100.000 Millions
	Total		Rs.499.952 Millions

As on 30.09.2010

Authorised Capital : Rs. 900.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 682.897 Millions

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		499.952	399.951	251.229
2] Share Application Money		25.000	0.000	25.700
3] Reserves & Surplus		280.520	219.172	91.171
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		805.472	619.123	368.100
LOAN FUNDS
1] Secured Loans		2269.607	1298.174	428.029
2] Unsecured Loans		197.115	103.906	52.703
TOTAL BORROWING		2466.722	1402.080	480.732
DEFERRED TAX LIABILITIES		110.353	53.128	46.426
TOTAL		3382.547	2074.331	895.258
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1859.257	421.445	462.424
Capital work-in-progress		39.924	1099.574	12.756
INVESTMENT		5.369	10.720	15.581
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	646.610	391.626	274.881
	Sundry Debtors	392.320	63.452	88.070
	Cash & Bank Balances	416.117	40.449	16.123
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	232.359	118.693	106.112
Total Current Assets		1687.406	614.220	485.186
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	102.164	52.096
	Other Current Liabilities	34.373	6.527	82.495
	Provisions	75.657	15.928
Total Current Liabilities		212.194	74.551	82.495
Net Current Assets		1475.212	539.669	402.691
MISCELLANEOUS EXPENSES		2.785	2.923	1.806
TOTAL		3382.547	2074.331	895.258

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	3638.226	1577.868	1285.082
		Other Income	129.598	4.772	6.699
		TOTAL (A)	3767.824	1582.640	1291.781
Less	EXPENSES
		Increase/(Decrease) in Finished Goods	(87.890)	(82.423)	(3.340)
		Purchases of Finished Goods	0.000	301.122	0.000
		Raw Material Consumed	3297.129	1007.607	984.314
		Manufacturing & Other Expenses	165.225	97.063	98.153
		Administrative & Other Expenses	34.544	94.910	62.613
		Salaries, Wages, Bonus, etc.	26.718	10.838	10.156
		Selling & Distribution Expenses	22.086	8.671	7.928
		Claim Received	0.000	(0.092)	0.000
		Prior Period Expenses	0.000	0.275	0.000
		TOTAL (B)	3457.812	1437.971	1159.824
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		310.012	144.669	131.957
Less	FINANCIAL EXPENSES (D)		77.884	48.758	40.899
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		232.128	95.911	91.058
Less/ Add	DEPRECIATION/ AMORTISATION (F)		64.320	32.586	38.706
	PROFIT BEFORE TAX (E-F) (G)		167.808	63.325	52.352
Less	TAX (H)		59.322	25.354	15.640
	PROFIT AFTER TAX (G-H) (I)		108.486	37.971	36.712
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		92.763	64.123	--
Less	APPROPRIATIONS
		Provision for dividend and dividend Dist. Tax	47.138	0.000	--
	BALANCE CARRIED TO THE B/S		154.111	102.095	--
	IMPORTS
		Raw Materials	1465.108	63.395	NA
		Stores & Spares	1.718	0.739	NA
		Capital Goods	235.675	700.245	NA
	TOTAL IMPORTS		1702.501	764.379	NA
	Earnings Per Share (Rs.)		2.17	0.96	--

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010	31.03.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	1680.550	1829.720	2201.450	2506.510
Total Expenditure	1568.240	1684.010	2051.800	2338.720
PBIDT (Eccl OL)	112.310	145.710	149.650	167.790
Other Income	11.010	7.850	30.170	18.040
Operating Profit	123.320	153.560	179.820	185.830
Interest	13.410	34.080	36.550	17.840
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	109.910	119.480	143.280	167.990
Depreciation	21.000	22.000	45.430	28.420
Profit Before Tax	88.910	97.480	97.850	139.570
Tax	28.500	27.500	27.770	34.760
Provision and Contingencies	0.000	0.000	0.000	0.000
Profit After Tax	60.410	69.980	70.080	104.810
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Adjustments	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	60.410	69.980	70.080	104.810

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.88	2.40	2.83
Net Profit Margin (PBT/Sales)	(%)	4.61	4.01	4.07
Return on Total Assets (PBT/Total Assets}	(%)	4.73	6.11	6.05
Return on Investment (ROI) (PBT/Networth)		0.21	0.10	0.14
Debt Equity Ratio (Total Liability/Networth)		3.33	2.38	1.53
Current Ratio (Current Asset/Current Liability)		7.95	8.24	5.88

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

The company has successfully commissioned 100000 TPA Continuous Polymerization (C.P.) Plant and commercial production of the same has been started since 1st July, 2009 Another expansion of 23500 TPA POY Plant and 21000 TPA FDY Plant has been successfully commissioned in the month of March, 2010 and the full effect of operation of this plant will be reflected in the next financial year.

The company has posted a satisfactory performance for the year. The company has produced 39010.768 Tons of Pet Chips / Polyester / Polypropylene Multifilament Yarn and dispatched 38986.823 Tons of Pet Chips / Polyester / P.P. / Poly yarns. The Company has manufactured 13.66 Lacs Mtrs of Polyester Fabrics and dispatched 14.24 Lacs Mtrs of Polyester Fabrics. The company has also produced 162.680 Tons of Menthol Products.

Income from Operation of the Company has increased by 138 % from Rs.1582.600 Millions to Rs.3767.800 Millions and Net Profit after Tax has increased by 190% from Rs.38.200 Millions to Rs.110.600 Millions in comparison to last year.

EXPORTS

The company has been exploring all the possibilities for exporting its products. During the year, the Company has exported Polyester Yarns, Pet Chips and Menthol products of Rs.113.977 Millions as compared to Rs.111.961 Millions in the last year.

At present company is exporting Pet Chips and Polyester yarns to South Africa, Bangladesh, Egypt, Saudi Arabia,

China, Peru, Argentina, Portugal, Indonesia, Iran, U.S.A and Singapore etc. Exploring exports market has been a key area of focus for the company. The Company expects reasonable growth in the overall export sales in the current year.

SUBSIDIARY COMPANIES

The company had an only subsidiary named Somani Industries (Nepal) Private Limited which has been wind up and the loss of Rs.3.328 Millions in investment in the subsidiary company has been accounted for during the year

MANAGEMENT DISCUSSION AND ANALYSIS (MDA)

ECONOMIC REVIEW:

In India economic recovery, which began around the second quarter of 2009-10, has since shown sustained improvement. Industrial recovery has become more broad-based and is expected to take firmer hold on the back of rising domestic and external demand. After a continuous decline for nearly a year, exports and imports have expanded since October/November, 2009. Flow of resources to the commercial sector from both bank and non-bank sources has picked up. The RBI in its Annual Monetary policy for 2010-11 has projected India's GDP Growth at 8.0 per cent with an upside. The developments on the inflation front are, however, worrisome. Headline wholesale price index (WPI) inflation accelerated from 1.5 per cent in October 2009 to 9.9 per cent by March 2010.

A) GLOBAL SCENARIO

The world economy seems to be recovering from the slump in almost as synchronized a manner as it experienced the downturn. The year 2009-10 have shown steady growth throughout the year. In line with GDP growth following a period of slow down in 2008, global textile consumption has improved. Polyester demand for textile applications during 2009 increased 3.4% to 32.4 MMT, Staple fibre demand increased by 2.5% to 12.4 MMT while filament demand increased by 4% to 20.0 MT. The Textile demand for the next five years is expected to grow at more than 3% CAGR, with polyester growing at a faster rate than any other fibre.

The fundamental change of the polyester business has continued in favour of PR China taking in a 69% Share. The only growth region was Asia, increasing its contribution by 7.6% to 29.7 million tones. Double digit growth has been witnessed in PR China (+ 10.0% at 22.0 million tones) , India (+10.5% at 2.3) , Malaysia (+25.5% at 0.3 ) and Vietnam ( +17% at 0.2 ). The output in Greater Europe dropped by 21.0% to 9.6 Lacs ton and the manufacturing volume in the Americas declined by 16.6% to 1.13 million tons. The textile powerhouse, China as well as India, Malaysia and Vietnam succeeded in increasing output substantially

Polyester staple fibre markets would witness demand growth faster than capacity addition, thus favoring healthy operating rates. The staple business grew by 4.4% to 12.6 million tones. The only growth region was Asia, now accounting for a 89% market share. The development in the synthetic fibre segment was remained favorable. The total market was up 3.7% to 40.3 million tones.

B) DOMESTIC SCENARIO

The Indian Textile Industry has an overwhelming presence in the economic life of the country. Apart from providing one of the basic necessities of life, the textile industry also plays a pivotal role through its contribution to industrial out put, employment generation and export earnings of the country. Currently, it contributes about 14 % to industrial production, 4% to the GDP, and 17 percent to the country's export earnings.#

The Government, in an effort to give a fillip to investments in down stream textile industries has extended Textile Up-gradation Fund Scheme (TUFS) till March 31, 2012. The “Scheme for Integrated Textile Park” (SITP) was launched in 2005 to provide the industry world class infrastructure facilities for setting up their textile units. A strategic plan has been executed under the banner of “Flagship program” with a tag '100 days agenda'. Vision of the program is to construct a globally competitive industry with strong brand equity of it products and maintains its consistency. The web technology has been well proven in establishing an enhanced and enriched electronic platform for providing more effective and e-governance services.*

The production of man made staple fibre industry which decreased by 14% in 2008-09 as compared to 2007- 08 is expected to increase by 19% during 2009-10. The production of all manmade fibre except polypropylene stable fibre are expected to record a positive growth in 2009-10 as compared to previous year.* India imposed antidumping duty on yarns and fabrics imported from China, Thailand and Vietnam to guard domestic industries against cheap imports.

The total production of man made filament yarn is expected to increase by 7% during 2009-10. The production of viscose, nylon and polyester filament yarn are expected to increase by 1%, 6% and 8% respectively*.

C) INDUSTRY SCENARIO

The total output of spun yarns and manmade fibres amounted to 6.9 million tons, consolidating its second position in world textile industry the India textile industry includes both an “organized” sector (large scale spinning units and composite mills) and an “unorganized“ sector (small scale spinning units, power looms, handlooms, hosiery units). More than 90% of yarn is produced in the organized sector.

The projected and sustainable higher growth rate of the Indian economy in the coming years augers well for synthetic textile yarn. The demand for polyester products grew by around 15% in F.Y. 2009-10. The growth momentum is led by PET with 26% followed by Polyester Filament Yarn (PFY) at 14% and Polyester Staple Fibre (PSF) at 12%.

In order to achieve better cost economics, many POY/FDY producers and Texturisers implemented backward integration to produce polyester yarn during the year and also commissioned new polymerization plants. This is expected to continue in the coming years as well.

The government of India partially rolled back stimulus package, by raising the excise duty on Polyester from 4% to 8% in July, 2009 and increased it by another 2% on Polyester in the Union Budget 2010-11. In over all scenario, with huge domestic market, rising income levels and increased growth in rural spending on textile products and handsome growth in export opportunities after quota regime have translated growth in whole textile setup in the country.

BUSINESS OVERVIEW:

The prices of raw-material, fuels and other commodities has remained cause of concern in the year 2009-10 due to its high volatility in its price trend as exhibit in below picture. Volatility and high margin prices may affect margins of the company.

The company has successfully commissioned fully imported C.P. Plant (Continuous Poly Condensation Plant) of 100000 TPA and POY /FDY Spinning Plant of 48300 Tons per annum and 6 MW Gas based Genset Captive Power Pant as Expansion cum Backward Integration Project with total cost of Rs.1450.000 Millions. Full result of this project will be reflected in the current year's operation.

The company has established its presence in entire Polyester Yarns value chain (Manufacturing Pet Chips and POY and FDY directly form MEG and PTA, Twisting and Texturising). The business out look is very impressive and positive. Value addition and operating margin in Polyester FDY Yarn is much higher then Polyester Chips and also POY. The company has chalked out further plan for expansion in the production capacity of POY and FDY by 47000 TPA and another 8 MW Captive Genset Power Project with total project cost of approx 1300.000 Millions.

By implementation of this project we expect to increase Turnover by around 1000.000 Millions and Operating Profit by Rs.400.000 Millions as such this project will improve operating margin substantially.

Apart from substantial amount of investments is being made in R and D activities, Captive Power Plants and increase in scale of operation, other initiative like de-bottlenecking, reduction in wastage, rationalization of manpower costs and optimum utilization of resources and reductions are likely to lead an improvement in the overall operating margin of the company.

FINANCIAL OVERVIEW:

Turnover: Subject has achieved Revenue from Operations of Rs.3760.411 Millions in 2009-10 as against 1584.770 Millions during the previous year recording an increase of over 137 %. Increase in turnover was due to backward integration project for production of Pet Chips.

Other Income: Other income consists of Interest, Discount etc. Other Income for the year amounted to Rs.7.412 Millions as against Rs.6.903 Millions in the previous year.

Consumption of Raw material: Consumption of raw material increased from 1007.607 Millions to 3297.129 Millions. This was mainly due to commissioning of 100000 M.T. Continuous Polymerization Plant and production of the same has been started since 01.07.2009.

Employee Cost: Employees cost were increased from Rs.1083.800 Millions to 2671.800 Millions. This increase is mainly due to higher increase given to employees and recruitment of employees in C.P. Division.

Interest Cost : Interest cost were increased by 60% from Rs.48.758 Millions to 77.884 Millions due to increase in working capital limits for our new projects.

Depreciation: Depreciation was increased by Rs.0.562 Millions due to capitalization of assets of new project of C.P. Plant.

EBIDTA: The Company's EBIDTA stood at Rs.310.011 Millions against 144.669 Millions in previous year reflecting an increase of 114%.

PAT: The profit after tax (PAT) has shown an impressive growth of 190% from Rs.38.156 Millions to 110.581 Millions.

UN-AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31^st MARCH, 2011

(Rs. in Millions)

Particulars	QUARTER ENDED	Year Ended
	31.03.2011 (Un-audited)	31.03.2011 (Un-audited)
Net Sales/Income from Operations	2456.847	8154.405
Other Operating Income	49.667	63.836
Total Income	2506.514	8218.241
Expenditure:
Increase/decrease in stock in trade and work in progress	20.576	24.311
Consumption of raw materials	1394.921	4792.636
Purchase of traded goods	756.114	2216.239
Employees cost	20.973	55.709
Depreciation	28.419	116.848
Other expenditure	146.142	553.882
Total	2367.145	7759.625
Profit from Operations before Other Income, Interest and Exceptional Items	139.369	458.616
Other Income	18.038	36.071
Profit before Interest and Exceptional Items	157.407	494.687
Interest	17.835	70.874
Profit after Interest but before Exceptional Items	139.572	423.813
Exceptional items	0.000	0.000
Profit (+)/ Loss (-) from Ordinary Activities before tax	139.572	423.813
Tax expense	34.765	118.534
Net Profit (+)/ Loss (-) from Ordinary Activities after tax	104.807	305.279
. Extraordinary Items	0.000	0.000
Net Profit(+)/ Loss(-) for the period	104.807	305.279
Paid-up equity share capital ( Face Value of Rs. 10/- per Share)	399.952	399.952
Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year	0.000	0.000
Earnings Per Share (EPS) : a) Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year (not to be annualized)	2.62	7.63
b) Basic and diluted EPS after Extraordinary items for the period, for the year to date and for the previous year (not to be annualized)	2.62	7.63
Public shareholding:
- No. of Shares	14905412	14905412
- Percentage of Shareholding	37.27	37.27
Promoters and Promoter Group shareholding:
a) Pledged/ Encumbered
- Number of Shares	0.000	0.000
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	0.000	0.000
- Percentage of Shares (as a % of the total share capital of the Company)	0.000	0.000
b) Non – encumbered
- Number of Shares	25089748	25089748
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	100.00	100.00
- Percentage of Shares (as a % of the total share capital of the Company)	62.73	62.73

Notes:-

Disclosure od Assets and liabilities as per clause 41 (10 (ea) of the Listing Agreement for the year ended 31.03.2011

Statement of Assets and Liabilities

(Rs. in Millions)

Particulars	As on 31.03.2011
	(Un– Audited)
SHAREHOLDER’S FUNDS:
Capital	586.952
Reserve and Surplus	585.799
LOAN FUNDS	2386.659
Deferred Tax Liabilities	196.608
TOTAL	3756.018
FIXED ASSETS	1919.149
INVESTMENTS	12.672
CURRENT ASSETS, LOAN AND ADVANCES
Inventories	915.520
Sundry Debtors	648.801
Cash and Bank Balance	55.836
Other Current Assets	249.501
Loan and Advances	187.815
Less : Current Liabilities and Provisions
Liabilities	157.028
Provisions	78.154
NET CURRENT ASSETS	1822.291
MISCELLANEOUS EXPENDITURE (NOT WRITTEN OFF OR ADJUSTED)	1.906
PROFIT AND LOSS ACCOUNT	0.000
TOTAL	3756.018

2. the above results have been taken on record at the meeting of the Board of Directors of the Company held on 11th day of May’ 2011.
3. Recently the company has been sucessfully completed its QIP Placement of Equity Shares alloted to Qualified Institutional Buyers and collected Rs. 653.400 Millions to part finance its expainsion project.
4. The Civil work of expainsion project is going on with full stream and likely to be completed as per schedule. Order for main Plant and Machanires for Spinning Plant and Gas Engines for captive power Plant has been placed.
5. The Board has proposed to recommend 10% Dividend (Rs. 1!- per share on face value of Rs. 101- each ) for the year, subject to approval of the Shareholders.
6. As per Accounting Standard 17, the requirement of Segment reporting is not applicable to the Company both in respect of Geographical Segment and Product Segment.
7. 29 complaints were received and resolved during the quarter. There was nil balance of complaint at the beginning and end of the quarter.
8. Figures of previous year have been re-grouped wherever neccessary.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture, Fixture and Equipments

· Vehicle

WEBSITE DETAILS

GROUP PROFILE:

Mr. Shankarlal Somani established Subject in 1989.  The company started as a yarn manufacturing unit and has now grown in a huge conglomerate with various businesses with an annual turn over of Rs.1200 million (USD 27 million). The company believes that perfection is something that’s defined by the customer and not by any formula or certificate.  Guided by their core values, today they stand firm in India as a well recognized name for a quality product supplier.  They command prestige in industry for having fulfilled their contracts successfully and timely over the years.

All the products manufactured or procured goes through various stringent tests to assure the quality and consistency of products.  Their company believes in Quality, Customer and Commitment.

PROMOTERS:-

The company has been promoted by Shri Shankarlal Somani, Mahesh kumar Somani and Rajkumar Somani belonging to a reputed and well established business family hailing from Dist. Sikar of Rajasthan. These entrepreneurs have been settled in the textile city Surat for more than 30 years. The promoters have been engaged in trading of synthetic cloth in the country and were among the few early movers to start synthetic processing in Surat in early 1990’s. The family sensed the great potential in textile at that point and diversified into manufacturing of yarn in early 1990’s. In 1989 the promoters established Sumeet Industries Private Limited and went public in 1993, with a unit to manufacture Polypropylene Multifilament Yarn. Mr. Sumeet Kumar Somani, Son of Shri Shankarlal Somani, a Management Graduate has been appointed as a Director in the Company w.e.f. 01.06.2004. Mr. Mahesh Kumar Somani has resigned from the Company w.e.f. 05.02.2007.

Surat is known as the textile city of India.  Their group is highly active in fabric processing business in Surat.  Their group holds a substantial capacity in fabric processing in Surat.  They have 11 fabric processing units with a capacity to process one million meters fabric per day which comes to 365 million fabric per annum.  In the last 4 years the group has acquired 6 processing units and the group still holds the hunger for growth.

Existing group units are as follows

§ Extreme Health Care Private Limited

§ National Poly Yarn Private Limited

§ Somani Overseas (Private) Limited

§ Sitaram Prints (Private) Limited

§ Sumeet Menthol Private Limited

§ Sanya Fashions

BOARD OF DIRECTORS

Subject is managed by an exceptionally professional and strong team with hands on experience of various industries. All the members in the management are competent and have been in the industry for more than a decade and have gained vast experience to take their unit at greater height.

The Board of Directors of the company consists of the following eminent personalities having expertise in their respective fields:

Shankarlal Somani (Chairman)

Mr. Shankarlal Somani holds a Bachelors degree in commerce (Hons) from the University of Rajasthan. He holds experience in textile industry for more than 30 years. Having deep knowledge of textile industry from yarn to garments, he is an outstanding source of knowledge.

Rajkumar Somani (Managing Director)

Mr. Rajkumar Somani holds a Bachelor degree in commerce (Hons) from the University of Rajasthan. He holds experience in textile industry for more than 25 years. Having deep knowledge of fabric processing, he is involved with various fabric processing units since years guiding them towards new heights. 

Mangilal Lahoti (Director)

Mr. Mangilal Lahoti is a Commerce graduate for the University of Rajasthan. He holds good experience of natural fibers as well as man made fibers. 

Deviprasad Saboo (Director)

Mr. Deviprasad Saboo is an Engineer from Biral Institure of Technology and Science, Pilani. Mr. Saboo has worked in various industries with India’s top group.  He had been working with the birla group at the Indian as well as overseas operations.  Mr. Saboo has worked in Sirpur Paper Mill at Andra Pradesh,  Orient Paper Industries as Vice President (Operations) and in  Nigerian Paper Mill in Nigeria which was managed by birla group project manager and then Managing Director.  With his vast experience he looks after the expansion and working of the plant.

Sumeet Somani (Director)

Mr. Sumeet Somani holds a PGDM from S. P. Jain Institute of Management and Research, Mumbai and a Masters Degree in Commerce from South Gujarat University. 

Dinesh Sharan Khare (Executive Director)

Mr. Khare is B. Tech from IIT, Kanpur. He has experience in yarn industry for more than 25 years.  He has worked with many respectable companies like J. K. Synthetics, Parasrampuria Industries Limited and Rajasthan Petro Limited  He handles the total textile marketing division of the company.

Bhagchand Choradia (Professional Director)

Mr. Choradia is a Chartered Accountant by qualification.  Mr. Choradia looks after the total finance department of the company.  Total company accounts and project financing is handled by him.  He has vast knowledge of finance and has served respectable company like Rajasthan Spinning Mills Limited

MILESTONE:

1988 Formation of Sumeet Industries Private Limited

1992 Conversion from Private Limited To Public Limited

1993 Installed capacity of 1500 MT per annum of Polypropylene Multifilament Yarn.

1995 Installed capacities of Texturising and Twisting of 1500 MT per annum for value addition

1997 Increased the capacity of Polypropylene Multifilament Yarn to 4000 MT per annum.

1999 Increased the capacity of Texturising and Twisting to 3900 MT and 2000 MT respectively per annum.

2004 Installed coal based power plant of 2.5 MW for captive power generation.

2005 Installed Polyester Spinning Plant to manufacture 10000 MT Polyester POY per annum.

2006 Installed 60 Waterjet Looms to manufacture 4 million meters fabric per annum.

2006 Installed Menthol Distilling and Crystallizing Capacities.

2006 Expanded capacity of filament yarn by 10000 ton per annum by setting up a brand new POY plant supplied by Barmag, Germany.

2007 At present company has coal based power plant of 2.35 MW. Now with the help of Gujarat Gas Company they are looking forward to install gas based power plant.

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.44.82
UK Pound	1	Rs.72.84
Euro	1	Rs.64.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

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.