MIRA INFORM REPORT

Report Date :

07.11.2011

IDENTIFICATION DETAILS

Name :	SUPREME PETROCHEM LIMITED
Registered Office :	612, Raheja Chambers, Nariman Point, Mumbai - 400 021, Maharashtra
Country :	India
Financials (as on) :	30.06.2010
Date of Incorporation :	14.12.1989
Com. Reg. No.:	054633
Capital Investment / Paid-up Capital :	Rs. 968.386 Millions
CIN No.: [Company Identification No.]	L23200MH1989PLC054633
TAN No.: [Tax Deduction & Collection Account No.]	MUMS01358A
Legal Form :	Public limited liability company. The company's shares are listed on the Stock Exchanges.
Line of Business :	Manufactures of Styrene Monomer and Polystyrene.
No. of Employees :	252 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 9460000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. Company can be considered 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Hitesh Shroff
Designation :	Accounts Manager
Contact No.:	91-22-67091900

LOCATIONS

Registered Office :	612, Raheja Chambers, Nariman Point, Mumbai - 400 021, Maharashtra, India
Tel. No.:	91-22-22883518 - 20
Fax No.:	91-22-22883521
E-Mail :	ravi_kuddyady@spl.co.in
Website :	http://www.supremepetrochem.com
Corporate Office :	Solitaire Corporate Park, Building No. 11, 5^th Floor, Andheri-Ghatkopar Link Road, Chakala, Andheri (East), Mumbai - 400 093, Maharashtra, India
Tel. No.:	91-22-67091900
Fax No.:	91-22-40055681
Factory 1 :	Amdoshi, Wakan Roha Road, Post : Patansai, Taluka Roha, District Raigad - 402 106, Maharashtra, India
Tel. No.:	91-2194-222540 - 2548
Fax No.:	91-2194-222337 / 2537 / 2617
E-Mail :	splw@bom7.vsnl.net.in
Factory 2 :	Ammulavoyil Village, Andarkuppam Post, Manali New Town, Chennai – 600 103. Tamil Nadu, India

DIRECTORS

As on 30.06.2010

Name :	Mr. M. P. Taparia
Designation :	Chairman cum Managing Director
Name :	Mr. Rajan B. Raheja
Designation :	Director
Date of Birth/Age :	56 Years
Qualification :	B.Com
Date of Appointment :	14.12.1989
Other Directorship:	EIH Associated Hotels Limited EIH Limited, Exide Industries Limited Hathway Cables and Datacom Limited ING Vysya Life Insurance Company Limited Juhu Beach Resorts Limited Prism Cement Limited
Name :	Mr. A.H. Parpia
Designation :	Director
Date of Birth/Age :	81 Years
Qualification :	LLB
Date of Appointment :	14.12.1989
Other Directorship:	SPL Industrial Park Limited SPL Industrial Support Services Limited
Name :	Mr. B.L. Taparia
Designation :	Director
Qualification :	Bachelor in Arts
Other Directorship :	The Supreme Industries Limited Supreme Capital Management Limited
Name :	Mr. Satish B. Raheja
Designation :	Director
Other Directorship :	Exide Industries Limited Prism Cement Limited
Name :	Mr. S.J. Taparia
Designation :	Director
Other Directorship:	The Supreme Industries Limited Supreme Capital Management Limited Oricon Enterprises Limited
Name :	Mr. Hasmukh Shah
Designation :	Director
Date of Birth/Age :	75 Years
Qualification :	B.A
Date of Appointment :	18.10.1994
Other Directorship:	Shaily Engineering Plastics Limited Gujarat Gas Company Limited Micro Inks Limited Sun Pharmaceuticals Industries Limited Atul Limited Deepak Nitrite Limited Flexican Bellows and Houses Private Limited
Name :	Mr. M.S. Ramachandran
Designation :	Director
Date of Birth/Age :	65 Years
Qualification :	B.E (Mechanical)
Date of Appointment :	26.07.2005
Other Directorship:	Bharat Electronics Limited ICICI Bank Limited Ester Industries Limited Gulf Oil Corporation Limited Cals Refineries Limited Concord Energy (I) Private Limited, Singapore
Name :	Mr. R. Kannan
Designation :	Director
Name :	Mr. Nihalchand Chauhan
Designation :	Director
Qualification :	B.Com, LLB, CAIIB
Other Directorship:	IBX Forex Limited Kabra Extrusion Technic Limited Encee Securities Private Limited
Name :	Mr. Viren R. Raheja
Designation :	Alternate Director to Satish B. Raheja

KEY EXECUTIVES

Name :	Mr. Hitesh Shroff
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	58712000	60.63
Sub Total	58712000	60.63
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	58712000	60.63
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	56483	0.06
Financial Institutions / Banks	25550	0.03
Foreign Institutional Investors	160872	0.17
Sub Total	242605	0.25
(2) Non-Institutions
Bodies Corporate	7372541	7.61
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	15750284	16.26
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	12770450	13.19
Any Others (Specify)
Trusts	41583	0.04
Non Resident Indians	1868897	1.93
Clearing Members	63386	0.07
Foreign Corporate Bodies	16867	0.02
Sub Total	37884008	39.12
Total Public shareholding (B)	38126613	39.37
Total (A)+(B)	96,838,613	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
Total (A)+(B)+(C)	96,838,613	-

BUSINESS DETAILS

Line of Business :

Manufactures of Styrene Monomer and Polystyrene.

Products :

Product Description	Item Code No.
Polystyrene	39031909
Expandable Polystrene	39031100

PRODUCTION STATUS (As on 30.06.2009)

Particulars	Unit	Registered Capacity	Installed Capacity	Actual Production
Styrene	MT	100000	--	--
Polystyrene	MT	554000	272000	151637
Speciality Polystyrene	MT	47000	17000	9537
Expandable Polystyrene	MT	150000	6000	4321
XPS	MT	5000	--	--

GENERAL INFORMATION

No. of Employees :

252 (Approximately)

Bankers :

• State Bank of India
• ABN-AMRO Bank N. V.
• AXIS Bank Limited
• Central Bank of India
• ICICI Bank Limited
• IDBI Bank Limited
• Indusind Bank Limited
• ING Vysya Bank Limited
• The Karur Vysya Bank Limited

Facilities :

Secured Loans :	As on 30.06.2010 Rs. in Millions	As on 30.06.2009 Rs. in Millions
(a) Working Capital Loans	0.000	0.000
(b) Rupee Term Loans	1218.495	955.154
(c) Foreign Currency Term Loan	125.621	306.198
Total	1344.116	1261.352

Notes :

1. Working capital facilities (including letters of credit) from banks are secured by hypothecation of Company’s stocks and book debts and by a second paripassu charge by way of an equitable mortgage on the Company’s immovable properties(including plant and machinery) situated at the Amdoshi plant site.

2. Rupee and Foreign Currency Term Loans from Banks are secured by a first charge by way of an equitable mortgage on the Company’s immovable properties (including Plant and Machinery) situated at the Amdoshi plant site (except for Corporate Term Loan of Rs. 450.000 millions from State Bank of India, which is secured by an English mortgage) and by hypothecation of movable assets(except book debts) subject to prior charge in favour of Company’s Bankers for working capital facilities. (except ECB borrowings of US $ 5 millions equivalent to Rs. 215.000 millions (balance outstanding as on 30-06-2010 Rs. 63.348 millions) from ICICI Bank (U.K.) Limited which is secured by first charge on the company’s movable and immovable assets) Creation of mortgage for securing Term Loan of Rs. 750.000 millions (balance outstanding as on 30-06-2010 Rs. 425.000 millions) availed from the Karur Vysya Bank Limited and Term Loan of Rs. 350.000 millions (balance outstanding as on 30-6-2010 Rs. 69.800 millions) availed from Axis Bank Limited is pending.

Unsecured Loans :	As on 30.06.2010 Rs. in Millions	As on 30.06.2009 Rs. in Millions
Fixed Deposits	206.950	115.810
Total	206.950	115.810

Banking Relations :
Auditors :	Parikh and Shah Chartered Accountants
Internal Auditors :	G.M. Kapadia and Company Chartered Accountants
Subsidiaries :	SPL Industrial Park Limited SPL Industrial Support Services Limited

CAPITAL STRUCTURE

After 06.10.2010

Authorised Capital Rs. 1508.386 Millions

Issued, Subscribed and Paid up Capital of Rs. 968.386 Millions

As on 30.06.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
125000000	Equity Shares	Rs.10/- each	Rs.1250.000 millions
25000000	Redeemable Cumulative Preference Shares	Rs.10/- each	Rs.250.000 millions
	Total		Rs.1500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
96838613	Equity Shares of	Rs.10/- each	Rs.968.386 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.06.2010	30.06.2009	30.06.2008
SHAREHOLDERS FUNDS
1] Share Capital		968.386	968.386	983.765
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1396.684	995.195	906.410
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2365.070	1963.581	1890.175
LOAN FUNDS
1] Secured Loans		1344.116	1261.352	1130.635
2] Unsecured Loans		206.950	115.810	266.628
TOTAL BORROWING		1551.066	1377.162	1397.263
DEFERRED TAX LIABILITIES		434.929	455.514	441.965
TOTAL		4351.065	3796.257	3729.403
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2563.254	2508.911	2304.236
Capital work-in-progress		290.740	332.020	370.227
INVESTMENT		1.999	2.777	2.777
DEFERREX TAX ASSETS		0.000	0.000	0.000
Foreign Currency Monetary Item Translation Difference		1.265	12.303	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1414.529	1036.833	836.908
	Sundry Debtors	2314.379	1529.527	1717.764
	Cash & Bank Balances	357.670	189.722	306.418
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	907.840	718.604	522.717
Total Current Assets		4994.418	3474.686	3383.807
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	539.678	395.435	557.190
	Other Current Liabilities	2669.886	1902.876	1594.276
	Provisions	291.047	237.200	185.535
Total Current Liabilities		3500.611	2535.511	2337.001
Net Current Assets		1493.807	939.175	1046.806
MISCELLANEOUS EXPENSES		0.000	1.071	5.357
TOTAL		4351.065	3796.257	3729.403

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.06.2010	30.06.2009	30.06.2008
	SALES
		Income	16127.110	13949.639	14812.740
		Other Income	27.093	29.748	32.255
		TOTAL (A)	16154.203	13979.387	14844.995
Less	EXPENSES
		Manufacturing & Other Expenses	14882.343	13225.214	14288.358
		Amortization of Miscellaneous Expenditure	8.441	21.974	4.286
		Exceptional Item of (Expenses)/ Income	0.000	19.936	(58.065)
		TOTAL (B)	14890.784	13267.124	14234.579
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1263.419	712.263	610.416
Less	INTEREST (D)		163.191	180.120	163.057
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1100.228	532.143	447.359
Less/ Add	DEPRECIATION/ AMORTISATION (F)		198.388	182.086	171.564
	PROFIT BEFORE TAX (E-F) (G)		901.840	350.057	275.795
Less	TAX (H)		296.061	156.699	40.724
	PROFIT AFTER TAX (G-H) (I)		605.779	193.358	235.071
Add	Prior Period Adjustments		(1.323)	0.669	(2.374)
Less	Excess / (Short) Provision of Taxes for earlier years		0.293	(2.183)	(6.966)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		194.566	216.019	225.384
Less	APPROPRIATIONS
	Transferred to General Reserve		200.000	100.000	120.000
	Proposed Dividend		174.310	96.839	98.377
	Corporate Dividend Tax thereon		28.950	16.458	16.719
	BALANCE CARRIED TO THE B/S		396.055	194.566	216.019
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3430.382	3653.231	5306.702
		Commission and Other Earnings	0.000	0.000	0.274
	TOTAL EARNINGS		3430.382	3653.231	5306.976
	IMPORTS
		Raw Materials	12751.188	11051.327	11824.934
		Stores & Spares	6.787	6.329	8.794
		Capital Goods	0.000	3.765	9.136
	TOTAL IMPORTS		12757.975	11061.421	11842.864
	Earnings Per Share (Rs.)
	- Basic		5.95	1.96	2.29
	- Diluted		5.95	1.78	1.96

QUARTERLY RESULTS

PARTICULARS	30.09.2010	31.12.2010	31.03.2011	31.06.2011	31.09.2011
	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter	5^th Quarter
Net Sales	4572.390	4567.020	5117.480	5178.060	5473.830
Total Expenditure	4227.010	4205.280	4613.780	4803.810	5153.490
PBIDT (Excl OI)	345.380	361.740	503.700	374.250	320.340
Other Income	11.540	6.140	14.990	8.470	8.280
Operating Profit	356.920	367.880	518.690	382.720	328.620
Interest	40.960	34.260	27.940	34.850	43.970
Exceptional Items	0.000	0.000	0.000	0.000	0.000
PBDT	315.960	333.620	490.750	347.870	284.650
Depreciation	51.000	51.420	50.370	50.920	52.090
Profit Before Tax	264.960	282.200	440.380	296.950	232.560
Tax	84.580	92.860	145.550	84.470	74.000
Provisions and contingencies	0.000	0.000	0.000	0.000	0.000
Profit After Tax	180.380	189.340	294.830	212.480	158.560
Extraordinary Items	2.280	(2.550)	0.8300	(0.690)	(0.010)
Prior Period Expenses	0.000	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000	0.000
Net Profit	182.660	186.790	295.660	211.800	158.550

KEY RATIOS

PARTICULARS		30.06.2010	30.06.2009	30.06.2008
PAT / Total Income	(%)	3.75	1.38	1.58
Net Profit Margin (PBT/Sales)	(%)	5.59	2.51	1.86
Return on Total Assets (PBT/Total Assets}	(%)	11.93	5.85	4.85
Return on Investment (ROI) (PBT/Networth)		0.38	0.18	0.15
Debt Equity Ratio (Total Liability/Networth)		2.32	1.99	1.98
Current Ratio (Current Asset/Current Liability)		1.43	1.37	1.45

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF OPERATIONS
 
The domestic Polystyrene market grew by 8.5% during the year due to all round growth in demand in all product segments. The Company consciously followed the strategy of exporting only to those countries which gave better netback. This resulted in lower export quantities of 43913 M.T. as compared to 50307 M.T. for the previous year. Demand estimates for the current year continue to remain on a high growth path.
 
The installed capacity of the Expandable Polystyrene (EPS) plant in Chennai has increased to 27700 TPA from June 1, 2010. The Company is progressively increasing the production rate to achieve optimum capacity utilization. The outlook for the domestic market for EPS remains positive. 
 
Commercial production of Extruded Polystyrene Board (XPS) commenced from August 2009 and commercial supplies have started. The marketing network is being progressively established. The Company is focusing on exports to those countries which have mandated insulation in buildings for energy conservation.
 

Specialty Polystyrene (SPS) business witnessed healthy growth during the year. The domestic sale grew by 36% whereas the exports grew by 48%.Considering the anticipated growth the Company plans to upgrade SPS capacity by establishing more lines.

BUY BACK OF EQUITY SHARES
 

The offer for buy-back of equity shares which commenced on December 31, 2008 closed on December 04, 2009. The Company has bought back and extinguished 1537907 equity shares reducing the paid-up share capital of the Company from Rs. 983.765 millions to Rs.968.386 millions

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY OVERVIEW
 
The stabilization of the world economy along with a domestic GDP growth of 7.2% during 2009 - 10 saw improved demand conditions from all segments including polymers. The Government partially rolled back the stimulus package by increasing excise duty by 2% which had marginal impact on demand growth.
 
The domestic Polystyrene market grew at 8.5%. The Company during the year started concentrating on high end markets where higher growth is envisaged in the coming years. Exports were low due to slow down in European countries and also due to the Company's strategy of exporting only premium grades and to those countries which give better net back. Demand revival was also seen in Specialty Polystyrene (SPS) business. The domestic sales grew by 36% whereas the export sales grew by 48%. The Company has plans to exploit the demand potential by adding further lines for SPS including master batches.
 
During the year the Company developed several new grades of special additive master batches for both domestic and overseas customers. The Company also successfully established olefinic compounds for environment friendly lead acid batteries thus replacing imported grades. New range of High Gloss HIPS and Coloured FR HIPS was developed during the year for use in appliances and water filters both for domestic and export markets.
 
Extruded Polystyrene (XPS) plant became operational from August 2009 and has been stabilized. Commercial supplies have commenced and market development is in progress. Grades using 50% CO2 have been developed as these are more environment friendly.
 
The Company established several grades of Extruded Polystyrene Board for insulation as well as cornices application. The Company is focusing its marketing efforts for XPS Boardnot only in the domestic market but also in the countries where insulation of buildings for energy conservation is mandatory. Distribution setup and sales force are being strengthened.
 
The increased installed capacity of 27700 TPA of Expandable Polystyrene (EPS) at Chennai plant was commissioned on June 1, 2010 after receiving all statutory approvals. Optimum capacity utilization is expected by October 2010. The Company's EPS product is already well established in the market.
 
The Company during the year implemented SAP ERP system. Training of all users is continuing. Once the system is stabilized it will help the Company in better management of inventories, receivables and improve overall operational efficiencies.

OUTLOOK
 
Polystyrene (PS): The Polystyrene outlook is positive. Three Polystyrene applications are expected to grow exponentially in India in the coming years.
 
* Domestic Appliances
* Foamed food service ware
* Purified water filters.
 
Considering the growth in these applications the domestic Polystyrene market is estimated to grow @ 12% during the current year. To cater to the increasing demand of high value premium PS grades like ESCR, High Gloss grades, basic resin for Noryl etc. it is proposed to revamp one of the existing PS lines to increase the production capacity of such grades from 48,000 TPA  to 72,000 TPA. This revamp is slated for completion by June, 2011.
 
Implementation of GST in April 2011 will help bring in efficiencies in distribution thus reducing logistics costs.
 
EPS: The domestic market grew by about 18% during the year. Similar growth is expected in the current year. The domestic market for EPS continues to be good. The thrust areas for EPS market development continue to be:
 
* Buildings and Construction industry for providing insulation for roofs and walls, for wall panels and sandwich panels.
 
* Fish boxes and other cold chain requirements as EPS provides effective insulation properties for transportation of perishable goods.
 
* EPS pallets which are light weight and economical alternative to conventional wooden pallets.
 
* Packaging of electronic goods and other white goods for which demand growth is very strong.
 
In view of the estimated growth in the domestic EPS market, the Company is evaluating the viability of further increasing the capacity of the Chennai plant to 33000 TPA. 
 
SPS: The Company is hopeful of further strengthening its position in SPS business during the year and is confident of achieving 80% growth on year-on-year basis in domestic and export markets. Considering the growth anticipated in the coming years, the Company is augmenting the capacity by installing four more lines for compounding.
 
XPS: Awareness about insulation in buildings for energy conservation is gaining momentum. Rising energy costs and growing concern about protecting the environment, augurs well for the product. Green building movement spearheaded by IGBC, TERI and Griha are getting well accepted by the building industry in India.
 
The Company's product branded as INSUBOARD has got good response from architects and consultants and was used successfully for the Common Wealth Games Village in Delhi.
 
PROJECTS
 
The Company would be incurring a capital expenditure of Rs.1250.000 millions during 2010-11 on the following capacity building projects and also revamp of PS line as mentioned above. Cup Grade and EPS at Amdoshi (Maharashtra) : The projects for setting up of 24000 TPA EPS plant at the existing plant site in Maharashtra and 20400 TPA plant for manufacturing Cup Grade EPS at the plant site in Maharashtra have been taken up simultaneously and is making good progress. Detailed engineering is nearing completion. Civil work commenced from mid November 2009, all major equipment are expected on site by September 2010. Commercial production is expected in the first quarter of 2011.
 
SPS: Four more lines for compounding are being installed thus enhancing the current capacity to 33,500 TPA by end September, 2010. Further expansion by adding two more lines to increase capacity to 43,800 TPA are scheduled for commissioning by July 2011.
 
Gas Power Project: Agreements for gas transmission and allocation for the gas engine based Captive Power Plant of 3500 KVA, have been signed with GAIL. Pipelines for gas delivery have been laid at the plant site. The project will be completed by April / May 2011.
 
Minor Port: The purchase of balance land is currently not progressing due to village opposition to land acquisition by a large industrial house in the vicinity of their site. The issue relating to construction of approach road is also pending with various authorities. Work on their Port project would commence only after the same are resolved.
 
SEZ: Land acquisition for the Special Economic Zone (SEZ) is progressing well. However, the draft direct tax code proposes to remove the tax incentive to units to be set up in SEZ. The Company is therefore having a relook at the viability of the SEZ project.

AWARDS AND RECOGNITION
 
The Company has achieved the following recognitions and awards during the period:
 
* Environment Excellence Gold Award 2009 from Green Tech Foundation, New Delhi.
 
* Suraksha Award 2008 for safety from National Safety Council of India.
 
* National Safety Award 2009 from Ministry of Labour and Employment.
 
* Longest accident free period award during the period 2008 - 09 from National Safety Council, Maharashtra Chapter, Mumbai.
 

* Gold Award 2010 for safety from Green Tech Foundation, New Delhi

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

Particular	30.06.2010	30.06.2009
i) Estimated value of contracts remaining to be executed on capital accounts and not provided for :	195.708	35.902
ii) Letters of Credit opened by Bankers and outstanding at the year end.	1188.895	674.408
iii) Bills discounted but not matured.	815.692	647.956
iv) Counter guarantees given to Banks against Banks' guarantees to Customs/ Sales Tax.	46.893	31.582
v) Excise / Service Tax matters under dispute.	399.928	173.751
vi) Sales Tax matter under dispute.	9.956	9.700
vii) Other Claims.	7.131	7.131

FIXED ASSETS:

• Land (Freehold)
• Buildings
• Plant and Machinery
• Office Equipments
• Computers
• Air Conditioner
• Vehicles
• Furniture and Fixtures

BUSINESS DESCRIPTION:

Subject is engaged in the manufacturing of polystyrene. The products manufactured by the Company include general purpose polystyrene, specialty polystyrene, master batches, high impact polystyrene and compounds. During the fiscal year ended June 30, 2010 (fiscal 2010), the Company produced 1,45,962 metric tons of polystyrene; 13,650 metric tons of specialty polystyrene; 10,019 metric tons of expandable polystyrene and 189 metric tons of extruded polystyrene (XPS). Subject owns and operates a polystyrene facility, with an installed capacity of 2, 72,000 tons per annum (TPA) located at Nagothane in Raigad district, about 100 kilometers south-east of Mumbai. The facility also includes a coloring and compounding facility with an installed capacity of 17,000 TPA. The plant is based on technology from NOVA Chemicals with basic engineering from ABB Lummus Crest, USA. The Company’s subsidiaries include subject Industrial Park Ltd and SPL Industrial Support Services Ltd. For the nine months ended 31 March 2011, Subject revenues increased 24% to RS14.29B. Net income before extraordinary items increased 42% to RS664.5M. Revenues reflect an increase in income from the operations and higher other income. Net income also reflects a decrease in interest expense and an increase in operating profit margin. Subject is engaged in the manufacturing of polystyrene.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.09.2011

(Rs. in millions)

Sr. No.	Particular	Unaudited	Unaudited
		Quarter ended 30.09.2011	Quarter ended 30.09.2010
1.	Net Sales / Income from Operation	5473.829	4561.865
2.	Expenditure
	a) (Increase) / Decrease in Stock in Trade and Work In Process	13.268	125.430
	b) Consumption of Raw Materials (Net)	3281.499	2598.371
	c) Purchase of Traded Goods	1517.159	1235.596
	d) Employee Cost	59.314	38.594
	e) Depreciation	52.089	50.996
	f) Other Expenditure	282.247	218.493
	g) Total Expenditure (a to f)	5205.576	4267.480
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	268.253	294.385
4.	Other Income	8.284	11.536
5.	Profit Before Interest and Exceptional Items (3+4)	276.537	305.921
6.	Interest	43.974	40.961
7.	Profit After Interest but before Exceptional Items (5-6)	232.563	264.960
8.	Exceptional Items	0.000	0.000
9.	Profit from Ordinary Activities before Tax (7+8)	232.563	264.960
10.	Tax Expense	74.000	84.581
11.	Net Profit from Ordinary Activities after Tax (9-10)	158.563	180.379
12.	Extraordinary Item (net of expense)	0.008	(2.281)
13.	Net Profit for the period (11-12)	158.555	182.660
14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	968.386	968.386
15.	Reserves Excluding Revaluation Reserve	0.000	0.000
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	Basic EPS before extraordinary items	1.64	1.86
	Diluted EPS before extraordinary items	1.64	1.79
	Cash EPS before extra ordinary Items	2.18	2.39
	Basic EPS after extraordinary items	1.64	1.89
	Diluted EPS after extraordinary items	1.64	1.81
	Cash EPS after extra ordinary Items	2.18	2.41
17.	Public Shareholding
	-Number of Shares	38126612	38242513
	- Percentage of Shareholding	39.37%	39.49%
18.	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	58712000	58596100
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100%	100%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	60.63%	60.51%

Notes:

1. Styrenics is the primary business segment of the Company. The secondary segment (Geographical) is as under:

PARTICULARS	31.03.2011	31.03.2011
(A) Net Sales / Income from Operation
With in India	4285.725	3566.314
Outside India	1188.104	995.551
	5473.829	4561.865
(b) all the assets of the company are within India except these Debtors	302.505	459.412

1. Trial runs of the EPS (including Cup Grade EPS) plant which were interrupted due to malfunctioning of certain equipment have recommenced after corrective action.

2. Higher prices of raw materials coupled with the weakening of the Indian Rupee against the US Dollar during the quarter caused a steep increase in the input costs which while increasing the turnover put pressure on margins with marginal decrease in the overall sales quantity.

3. Tax expenses include current tax and deferred tax.

4. The Company had exercised the option as per Ministry of Corporate Affairs notification dated March 31, 2009 in respect of AS 11. Accordingly, "Foreign Currency Monetary Item Translation Difference Account" has been debited with Rs.0.950 Millions in respect of foreign exchange loss and Rs. 0.409 millions being amortization out of it.

5. Investor complaints during the quarter:

Opening Balance: Nil, Received during the quarter: 25, Pending as on 30.09.2011: 2.

6. The Statutory Auditors of the Company have conducted a 'Limited Review' of the Financial Results for the quarter ended September 30, 2011.

7. Figures of the previous year/quarter are regrouped where necessary.

8. This statement was taken on record by the Board of Directors at the meeting held on October 19, 2011.

Director:

M. P. Taparia - Non-Executive Chairman of the Board Chairman

Shri. M. P. Taparia is Non-Executive Chairman of the Board of Subject. He is the Managing Director of The Supreme Industries Limited and wide experience in business management, marketing, operations and actively involved in various industry forums.

Chand Chunilal Chauhan - Non-Executive Independent Director

Shri. Nihalchand Chunilal Chauhan is Non-Executive Independent Director of subject. He is respected and well known personality in banking and financial circles, has over 49 years experience in domestic and international banking. His varied experience includes long stints with State Bank of India and Arab Monetary Fund, Abudhabi. He is a consultant to Multi Commodities Exchange of India Limited. His qualifications are B. Com (Hons), LLB, CAIIB. Other Directorships held by him are IBX Forex Limited, Kabra Extrusion Technic Limited, Encee Securities Private Limited.

R. Kannan - Non-Executive Independent Director

Shri. R. Kannan is Non-Executive Independent Director of subject. He was formerly General Manager of ICICI Limited, in charge of the Oil and Gas division and thereafter Director of The Institute of Financial Management and Research, Chennai. He is currently a faculty Member of the Institute and is considered in the Oil, Gas and Petrochemical Industry.

Aziz H. Parpia - Non-Executive Independent Director

Shri. Aziz H. Parpia is a Non-Executive Independent Director of subject. He is Sr. Solicitor and Advocate with long experience in legal field and on the Board of Directors of reputed Companies. Chairman/Director of other Companies includes SPL Industrial Park Limited and SPL Industrial Support Services Limited. He holds LLB.

Rajan B. Raheja - Non-Executive Director

Shri. Rajan B. Raheja is Non-Executive Director of Subject. He is the Promoter of the R. Raheja Group. He started himself on a business career over 35 years ago. His business range includes batteries, cable television, ceramic tiles, cement, construction and petrochemicals. He has assumed various positions such as Chairman of Prism Cement Limited, Vice Chairman.of Exide industries Limited and also on the Board of many other well-known Companies Like EIH Limited, EIH Associated Hotels Limited, Asianet Satellite Communications Limited, H and A Johnson (India) Limited, Juhu Beach Resorts Limited. Overyears Shri Rajan B. Raheja has also been dedicating himself to various educational and charitable trusts. He is Chairman/Director of - EIH Associated Hotels Ltd., EIH Limited, Exide Industries Limited, Hathway Cables and Datacom Limited, ING Vysya Life Insurance Company Limited, Juhu Beach Resorts Limited and Prism Cement Limited. He has a Bachelors degree in Commerce.

M. S. Ramachandran - Non-Executive Independent Director

Shri. M. S. Ramachandran is Non-Executive Independent Director of Subject. He is the former Chairman of Indian Oil Corporation. Attended advanced management programmes from Ashridge Management College in England and IIM in Ahmedabad. Also served as the Executive Director of Oil Co-ordination Committee: One of the foremost authorities on the Oil, Gas and Petrochemical Sector. Inducted into the Hall of Fame at Chemtech Pharma Bio Award Function in April 2005. He is the Chairman/Director of Bharat Electronics Limited, ICICI Bank Limited. Ester Industries Limited, Gulf Oil Corporation Limited, Cals Refineries Limited and Concord Energy (I) Pte. Limited, - Singapore. He holds B. E. (Mechanical).

Hasmukh S. Shah - Non-Executive Independent Director

Shri. Hasmukh S. Shah is Non-Executive Independent Director of Subject. He has long experience in industry and is the Ex- Chairman of IPCL besides being the member of the Board of Directors of reputed Companies. He is Chairman/Director of Shaily Engineering Plastics Limited, Gujarat Gas Company Limited, Micro Inks Limited, Sun Pharmaceuticals Industries Limited, Atul Limited, Deepak Nitrite Limited and Flexican Bellows and Houses Private Limited. He holds B. A.

S. J. Taparia - Non-Executive Director

Shri. S. J. Taparia is Non-Executive Director of Subject. He has experience in technical, operational and marketing aspects of industrial products. Actively involved in industry forums. He is Director of The Supreme Industries Limited, Supreme Capital Management Limited, Oricon Enterprises Limited.

B. L. Taparia - Non-Executive Director

Shri. B. L. Taparia is Non-Executive Director of Subject. He is Chairman of the Supreme Industries Limited. Started his business career over 50 years ago, long experience in business management. Also associated with Philanthropic activities. He has a Bachelor in Arts. His other directorships include The Supreme Industries Limited, Supreme Capital Management Limited.

PRESS RELEASE:

Supreme Petrochem Limited records a 45% increase in Net Profit for the year 10-11 to '876.900 millions

India PRwire

18 July 2011

India, July 18 -- Supreme Petrochem Limited (SPL) a Styrenics major and the largest polystyrene producer in India has reported a Net profit of '876.900 million for the year ended June 30, 2011, as compared to '604.700 millions for the corresponding year in 2010. Net revenues for the year 10-11 stood at '19434.900 million as compared to '16118.400 million in the preceding year.

The Board of Directors of the Company in its meeting held on July 18, 2011 have recommended a Dividend of ' 2.80 per equity share of '10/- each for the year 2010-11.

Capex of '91 crores incurred in 2010-11. Capex of '84 crores planned in 2011-12.

The Speciality Polystyrene compounding capacity has been increased to 30000 TPA.

Trial runs have commenced for Expandable Polystyrene (EPS) project including Cup Grade EPS with total capacity of 44400 TPA at the existing plant site in Amdoshi, Maharashtra.

The outlook is positive for all the Company's products viz. Polystyrene, Expandable Polystyrene, Speciality Polystyrene and Compounding and Extruded Polystyrene Insulation Boards.

Notes to Editor

About Supreme Petrochem Limited

Supreme Petrochem Limited has been jointly promoted by Supreme Industries Limited, India's largest plastic processors, and the Rajan Raheja Group. The company commands close to 50% market share in the polystyrene business in India, and has a manufacturing capacity of 272,000 TPA. It is also a leading producer of specialty compounds and master batches for the automotive, styrenics and other plastics industry in the country. It is also a manufacturer of Expandable Polystyrene (EPS) and Extruded Polystyrene Insulation Board (XPS). The company offers a comprehensive range of all key grades of polystyrene - crystal, impact and specialty. Published by HT Syndication with permission from India PRwire.

Supreme Petrochem board to consider dividend

Accord Fintech (India)

11 July 2011

India, July 11 -- Supreme Petrochem has informed that a meeting of the board of directors of the company will be held on July 18, 2011 to approve and take on record the audited financial results for the year ended June 30, 2011 and to consider recommendation of dividend on equity shares. The above information is part of the company's filing submitted to the BSE. Published by HT Syndication with permission from Accord Fintech

Unlocking value of 'realty' key growth driver for Supreme Industries

Economic Times (India)

28 April 2011

By By Ramkrishna Kashelkar, The Economic Times, India

April 28--Mumbai-based plastic goods maker Supreme Industries faced a temporary phase of margin pressure as raw material costs shot up during the March 2011 quarter.

Overcoming this and a few other challenges, the company went on to post a respectable profit growth for the March 2011 quarter. The scrip, however, took little notice of the results and maintained its level. It was mainly the strong sales growth that enabled Supreme Industries to post a 12.2% consolidated net profit growth to Rs 483.000 million during the March 2011 quarter.

The challenges that the company faced included margin pressure, no sales from its commercial building, a fall in other income and rising interest pressure. Still, the 29% revenue growth aided by a 32% volume growth and a 50% jump in its share in Supreme Petrochem's profits propped up the bottomline.

Rising crude oil prices and the disaster in Japan led to a spurt in the company's raw material prices, which it couldn't immediately pass on. As a result, the operating profit margin shrank 180 basis points to 12.6%. With its Rs 2750.000 millions capex plan for FY11 continuing and no revenues coming from property sales, the interest burden soared 60% to Rs 129.000 millions.

The company's debt-equity ratio rose to 0.93 by end-December 2010 from 0.72 in June 10. Considering the strong demand for its products and a robust volume growth, the margins are expected to return to normal levels for the June 2011 quarter. The company has constructed a 10-storey commercial complex with 2,75,000 sq ft saleable area on its land in Andheri.

So far, it has sold around 40,000 sq ft for Rs 600.000 millions which translates into an average price of Rs 15,000 per sq ft. The company expects to sell off the remaining property by end-2011 and realise Rs 3500.000 millions. Since the stock split in October 2010, the share price of Supreme Industries has remained in a tight range disregarding the strong bearish sentiments in the first couple of months of 2011.

Between January and February 2011, when the Sensex lost over 13%, the Supreme scrip actually gained slightly. The scrip is trading at a price-to-earnings multiple (P/E) of 10.5, considering its consolidated net profit for trailing 12 months. While the strong 20% plus volume growth continues to support the company's steady growth, unlocking the value in commercial property remains a key growth driver for the company in coming quarters.

Supreme Petrochem shuts one of its Polystyrene lines

Accord Fintech (India)

31 January 2011

India, Jan. 31 -- Supreme Petrochem, having three lines for producing Polystyrene at its plant near Nagothane, has temporarily shut down one of its Polystyrene lines for repairs due to breakdown in the reactor section. While, the other two lines of the company continue to work smoothly. The company continues to serve to the full extent, its customers in the domestic and export markets. Further, there is no disruption in the regular operations of the company. Supreme Petrochem (SPL) is a producer of Polystyrene (PS), Expandable Polystyrene (EPS), Speciality Polystyrene (SPS) and Extruded Polystyrene Insulation Board (XPS) from its plants near Nagothane, Maharashtra and near New Manali Town, Chennai. It has three lines for producing Polystyrene at its plant near Nagothane.

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.49.08
UK Pound	1	Rs.78.65
Euro	1	Rs.67.79

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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		46

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.