MIRA INFORM REPORT

Report Date :

19.12.2013

IDENTIFICATION DETAILS

Name :	ESTER INDUSTRIES LIMITED (During 1989-1990)

Formerly Known As :	ESTER INDIA LIMITED

Registered Office :	Sohan Nagar, P.O. Charubeta, Khatima, Dist. Udham Singh Nagar, Uttarakhand- 262308

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	04.02.1985

Com. Reg. No.:	20-015063

Capital Investment / Paid-up Capital :	Rs. 314.469 Millions

CIN No.: [Company Identification No.]	L24111UR1985PLC015063

TAN No.: [Tax Deduction & Collection Account No.]	DELE02870A

PAN No.: [Permanent Account No.]	AAACE0119K

Legal Form :	A Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges

Line of Business :	Manufacturer and Exporter of polyester films, specialty polymers and engineering plastics

No. of Employees :	1500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 10340000

Status :	Satisfactory

Payment Behaviour :	Slow But Correct

Litigation :	Clear

Comments :	Subject is an established company having a satisfactory track record. There appear losses recorded by the company from its operating activities during the year 2013. However, general financial position of the company appears to be decent. Trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing 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 – March 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

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

INDIAN ECONOMIC OVERVIEW

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6 % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BBB- (Term Loan)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	August 2013

Rating Agency Name	ICRA
Rating	A3+ (Short Term Fund Based Limits)
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	August 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Piyush
Designation :	Accounts Department
Contact No.:	91-124-4572100
Date :	17.12.2013

LOCATIONS

Registered Office / Works :	Sohan Nagar, P.O. Charubeta, Khatima, District Udham Singh Nagar, Uttarakhand– 262 308, India
Tel. No.:	91-5943-250153-57
Fax No.:	91-5943-255158
E-Mail :	info@esterindustries.com sharesdept@esterindustries.com pradeep.rustogi@ester.in
Website :	www.esterindustries.com

Head Office :	Plot No.11, Block-A, Infocity-I, Sector 33 and 34, Gurgaon-122001, Haryana, India
Tel. No.:	91-124-4572100 – 30
Fax No.:	91-124-4572199
E-Mail :	info@ester.in

Mumbai Office :	B-009, Kemp Plaza, Near 5 D Restaurant, Mind Space, Chincholi Bandar Road, Malad (West), Mumbai – 400064, Maharashtra, India
Tel. No.:	91-22-40034526 / 40034527

DIRECTORS

AS ON 31.03.2013

Name :	Mr. Arvind Kumar Singhania
Designation :	Non Executive Chairman

Name :	Mr. P. S. Dasgupta
Designation :	Director

Name :	Mr. Pradeep Kumar Rustagi
Designation :	Executive Director and CFO

Name :	Mr. V. B. Haribhakti
Designation :	Director

Name :	Mr. Ashok Kumar Agarwal
Designation :	Executive Director – Operations and Projects

Name :	Mr. A. K. Newatia
Designation :	Executive Director

Name :	Dr. Anand Chand Burman
Designation :	Director

Name :	Mr. M .S Ramachandran
Designation :	Director

Name :	Mr. Dinesh Chand Kothari
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Diwaker Dinesh
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	450	0.00
Bodies Corporate	10222650	16.25
Sub Total	10223100	16.25
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	150	0.00
Bodies Corporate	35120192	55.84
Sub Total	35120342	55.84
Total shareholding of Promoter and Promoter Group (A)	45343442	72.10
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	27500	0.04
Financial Institutions / Banks	34800	0.06
Insurance Companies	300	0.00
Sub Total	62600	0.10
(2) Non-Institutions
Bodies Corporate	1956329	3.11
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	11532359	18.34
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	3009915	4.79
Any Others (Specify)	989061	1.57
Non Resident Indians	989061	1.57
Sub Total	17487664	27.81
Total Public shareholding (B)	17550264	27.90
Total (A)+(B)	62893706	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	62893706	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of polyester films, specialty polymers and engineering plastics

Products :

Product Description	Item Code No. (ITC Code)
Polyester Chips	392069
Polyester Film	392069
Engineering Plastic	392069

Exports :

Products :

Finished Goods

Countries :

· USA

· UK

Imports :

Products :

Raw Materials

Countries :

Taiwan

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Polyester Chips	MT	107000 **	38367 @
Polyester Film	MT	57000 #	32116
Engineering Plastic	MT	14400	5784

* Delicensed Products.

** Continuous Process Plant with an installed capacity of 71,000 MT p.a. was installed in November 2010

# Film plant with an installed capacity of 30,000 MT p.a. was installed in January 2011.

@ Does not include 4851 MT of Polymer Melt.

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

1500 (Approximately)

Bankers :

· Canara Bank, Barakhamba Road, New Delhi, India

Tel No.: 91-11-23413381

· Bank of India

· Bank of Baroda

· Union Bank of India

· State Bank of Bikaner and Jaipur

Facilities :

Secured Loan	Rs. In Millions 31.03.2013	Rs. In Millions 31.03.2012
Long-term borrowings
Term loans from banks	165.851	305.046
Term loans from body corporate	0.000	4.351
Vehicle loans	9.845	11.367
Buyers' credit for capital goods	1420.346	1358.847
Short Term Borrowings
Working capital loan from banks	677.359	308.424
Bills discounting	301.591	223.111
Buyers' credit for raw material	76.081	163.093
Acceptances	438.006	413.333

TOTAL	3089.079	2787.572
NOTES LONG TERM BORROWINGS I. Term loans a) From Bank of Baroda of Rs. 171.200 Millions (Previous year Rs. 86.239 Millions) for Corporate Office project is secured by mortgage created by way of deposit of title deeds in respect of the immoveable property (land and building) at Gurgaon. The term loan bears floating interest at the rate base rate plus 4.25% pa. As per sanction, the term loans are repayable in 71 monthly installments starting from 1st April 2012. The outstanding amount as on 31st March 2013 is repayable in 59 monthly installments starting from 1st April 2013. b) From State bank of Bikaner and Jaipur of Rs. 16.082 Millions (Previous year Rs. 21.150 Millions) is secured by first exclusive charge by way of hypothecation of Oil Fired Heater, Reclaim Co-extruder and In-Line Coater and further secured by irrevocable guarantee of Wilemina Finance Corp. (Holding company). The term loan bears floating interest at the base rate plus 3.25% pa. The Term Loans are repayable in 20 quarterly installments starting from Dec’ 2011. The outstanding amount as on 31st March 2013 is repayable in 14 quarterly installments starting from 1st April 2013. c) From consortium member banks of Rs. 225.303 Millions (Previous Year Rs.427.845 Millions) are secured by first mortgage created by way of deposit of title deeds in respect of the immovable properties at Khatima, both present and future and first charge by way of hypothecation of Company’s all movable assets (save and except inventories, book debts, vehicles acquired through vehicles loans and machinery acquired through term loan taken from banks / body corporate on exclusive charge basis), ranking pari passu inter-se and further secured by irrevocable guarantee of Wilemina Finance Corp. (Holding company). The term loans bear floating interest rate ranging from Base Rate plus 2.75% - 4.25% pa. These term loans are repayable in 28 quarterly installments starting from 1st April 2012. The outstanding amount as on 31st March 2013 is repayable in 24 quarterly installments starting from 1st April 2013. Term Loans from banks are further secured by second charge by way of hypothecation of stocks of raw material, finished goods, semi finished goods, stores and spares, book debts and other receivables (both present and future). d) From Body Corporate (Tata Capital Limited) is secured by first exclusive charge by way of hypothecation of Off Line Coater and further secured by irrevocable guarantee of Mr. Arvind Kumar Singhania (Chairman of the Company) and Wilemina Finance Corp. (Holding company). The term loan from body corporate bears floating interest at the rate 16.50% pa. These term loan is repayable in 36 monthly installments starting from Feb’ 2011. The outstanding amount as on 31st March 2013 is repayable in 10 monthly installments starting from 1st April 2013. II. Vehicle loans are secured by hypothecation of specific vehicles acquired out of proceeds of the Loans. Vehicle loans bears interest rates ranging from 9.65 to 11.00% pa. These loans are repayable in monthly installments till July’2016. III. Buyers’ Credit for capital goods a) Buyers’ credit amounting to Rs. 1209.234 Millions (Previous Year Rs. 1158.576 Millions) are against Letters of Undertaking (LOUs) / Letter of Comfort (LOCs) issued by consortium of banks. LOUs / LOCs facility is secured by first mortgage created by way of deposit of title deeds in respect of the immovable properties situated at Khatima, both present and future and first charge by way of hypothecation of all movable assets (save and except inventories, book debts, vehicles acquired through vehicles loans and machinery acquired through term loans taken from body corporate on exclusive charge basis), ranking pari passu inter-se and further secured by irrevocable guarantee of Wilemina Finance Corp. (Holding company). b) Buyers’ Credit amounting to Rs. 108.236 Millions (Previous Year Rs. 101.291 Millions) are against LOUs / LOCs issued by Union Bank of India (UBI). LOUs / LOCs facility from UBI is secured by first exclusive charge by way of hypothecation of Metallizer (Topmet 2850) and further secured by irrevocable guarantee of Wilemina Finance Corp. (Holding company). c) Buyers’ Credit amounting to Rs. 102.876 Millions (Previous Year Rs. 98.980 Millions) are against LOUs / LOCs issued by State bank of Bikaner and Jaipur (SBBJ). LOUs / LOCs facility from SBBJ is secured by first exclusive charge by way of hypothecation of Oil Fired Heater, Reclaim Co-extruder and In-Line Coater, and further secured by irrevocable guarantee of Wilemina Finance Corp. (Holding company). Company has availed LOUs / LOCs facilities from the banks to avail the Buyers’ Credit of Rs. 1420.346 Millions (Previous Year - Rs. 1358.847 Millions). LOU / LOC facilities to the extent of Rs.1312.110 Millions (previous Year- Rs 1257.556 Millions) is sanctioned to the company as a sub limit of term loans up to a period of 3 years till September 2014. LOCs / LOUs facilities are sanctioned to the company as a sub limit of term loan, bears interest rate ranging from 0.92% to 1.95% Liability towards Buyers’ Credit under LOCs / LOUs will be liquidated out of the proceeds of term loans that are repayable over a period of seven years. SHORT TERM BORROWINGS Working capital loan and bills discounting: These loans are secured by first charge by way of hypothecation of stocks of raw materials, finished goods, semi finished goods, stores and spares, book debts and other receivables (both present and future) and further secured by irrevocable guarantees of Wilemina Finance Corp. (Holding company). Working Capital and Bill discounting facilities are further secured by way of second charge in respect of immovable properties and movable fixed assets. The working capital loans from banks bear floating interest rate ranging from Base Rate plus 2.50% to 2.75% pa. Buyers’ Credit for raw material are against LOUs / LOCs issued by consortium of banks. The LOUs / LOCs facilities is sanctioned to the Company as a sub limit of Non Fund (LCs) based facility. The facility is secured by first charge by way of hypothecation of stocks of raw materials, finished goods, semi finished goods, stores and spares, book debts and other receivables (both present and future) and further secured by irrevocable guarantees of Wilemina Finance Corp. (Holding company). Buyers’ credit for raw material bears interest rate ranging from 1.03% to 1.66%.


Banking Relations :	--

Statutory Auditors :
Name :	S. R. Batliboi and Company LLP Chartered Accountant
Address :	Gurgaon, Haryana, India

Ultimate Holding Company :	Goldring Investments Corp

Holding Company :	Wilemina Finance Corporation

Fellow Subsidiaries :	Sriyam Impex Private Limited

Subsidiaries :	Ester International USA Limited (EIUL)

Other Related Parties :	· Fenton Investments Private Limited · PDJ Properties and Investment Services Private Limited · Polyplex Corporation Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

150000000	Equity Shares	Rs.5/- each	Rs. 750.000 Millions
600000	Cumulative Convertible Preference Shares	Rs.50/- each	Rs. 30.000 Millions
8000000	Redeemable Cumulative Preference Shares	Rs.50/- each	Rs. 400.000 Millions
	TOTAL		Rs. 1180.00 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

62893706	Equity Shares	Rs.5/- each	Rs. 314.469 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	314.469	314.469	314.469
(b) Reserves & Surplus	2271.731	2325.890	2466.540
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	2586.200	2640.359	2781.009

(3) Non-Current Liabilities
(a) long-term borrowings	1596.042	1679.611	1616.270
(b) Deferred tax liabilities (Net)	189.545	214.935	285.406
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	43.689	39.272	36.434
Total Non-current Liabilities (3)	1829.276	1933.818	1938.110

(4) Current Liabilities
(a) Short term borrowings	1493.037	1107.961	572.671
(b) Trade payables	208.232	186.071	577.892
(c) Other current liabilities	391.169	382.218	173.006
(d) Short-term provisions	22.568	20.792	194.389
Total Current Liabilities (4)	2115.006	1697.042	1517.958

TOTAL	6530.482	6271.219	6237.077

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3746.242	3498.112	3621.815
(ii) Intangible Assets	8.910	6.353	10.515
(iii) Capital work-in-progress	51.079	171.934	46.010
(b) Non-current Investments	0.171	8.041	9.041
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	80.140	153.401	157.936
(e) Other Non-current assets	0.961	5.719	15.930
Total Non-Current Assets	3887.503	3843.560	3861.247

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1227.011	1043.103	743.754
(c) Trade receivables	1090.217	842.065	1210.331
(d) Cash and cash equivalents	142.552	211.687	166.355
(e) Short-term loans and advances	135.404	292.444	182.952
(f) Other current assets	47.795	38.360	72.438
Total Current Assets	2642.979	2427.659	2375.830

TOTAL	6530.482	6271.219	6237.077

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	8860.228	6995.801	6716.422
		Other Income	57.945	57.831	16.397
		TOTAL (A)	8918.173	7053.632	6732.819

Less	EXPENSES
		Cost of Material Consumed	6449.013	5183.323	3389.744
		Employee benefits expenses	322.020	248.220	299.518
		Other Expenses	1631.938	1458.934	1036.442
		Changes in inventories of Finished goods, work in progress and stock in trade	42.758	(247.486)	(233.715)
		TOTAL (B)	8445.729	6642.991	4491.989

Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		472.444	410.641	2240.830

Less	FINANCIAL EXPENSES (D)		264.681	354.948	127.640

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		207.763	55.693	2113.190

Less/ Add	DEPRECIATION/ AMORTISATION (F)		285.852	265.354	179.258

	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(78.089)	(209.661)	1933.932

Less	TAX (H)		(25.390)	(70.470)	639.255

	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(52.699)	(139.191)	1294.677

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2767.439	2719.593	2173.445
	TOTAL EARNINGS		2767.439	2719.593	2173.445

	IMPORTS
		Raw Materials	980.478	328.176	596.188
		Stores & Spares	71.568	76.973	49.920
		Capital Goods	57.358	146.858	1345.482
	TOTAL IMPORTS		1109.404	552.007	1991.590

	Earnings / (Loss) Per Share (Rs.)		(0.84)	(2.21)	20.59

QUARTERLY RESULTS

PARTICULARS	30.06.2013
	1^st Quarter
Net Sales	2051.200
Total Expenditure	1911.400
PBIDT (Excl OI)	139.800
Other Income	12.100
Operating Profit	151.900
Interest	64.100
Exceptional Items	0.000
PBDT	87.900
Depreciation	72.600
Profit Before Tax	15.300
Tax	5.100
Provisions and contingencies	0.000
Profit After Tax	10.200
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	10.200

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(0.59)	(1.97)	19.23

Net Profit Margin (PBT/Sales)	(%)	(0.88)	(2.99)	28.79

Return on Total Assets (PBT/Total Assets}	(%)	(1.21)	(3.44)	31.28

Return on Investment (ROI) (PBT/Networth)		(0.03)	(0.08)	0.70

Debt Equity Ratio (Total Debt /Networth)		1.19	1.06	0.79

Current Ratio (Current Asset/Current Liability)		1.25	1.43	1.57

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

VIEW INDEX OF CHARGES

S. No	Charge ID	Date of Charge Creation /Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN
1	10448269	08/08/2013	11,515,000.00	CANARA BANK	PRIME CORPORATE BRANCH, CONNAUGHT PLACE, 2ND FLOOR, WORLD TRADE TOWER, BARAKHAMBA LANE, NEW DELHI, DELHI - 110001, INDIA	B84671486
2	10448413	02/08/2013	93,500,000.00	UNION BANK OF INDIA	M-11, 1ST FLOOR, MIDDLE CIRCLE, CONNAUGHT CIRCUS, NEW DELHI, DELHI - 110001, INDIA	B84727221
3	10444853	02/08/2013	110,000,000.00	UNION BANK OF INDIA	M-11, 1ST FLOOR, MIDDLE CIRCLE, CONNAUGHT CIRCUS, NEW DELHI, DELHI - 110001, INDIA	B82997545
4	10331394	29/12/2011	115,500,000.00	STATE BANK OF BIKANER AND JAIPUR	G-72, CONNAUGHT CIRCUS, NEW DELHI, DELHI - 110001, INDIA	B30438162
5	10272254	13/12/2011 *	206,000,000.00	BANK OF BARODA	16, PARLIAMENT STREET, NEW DELHI, DELHI - 110001, INDIA	B28928836
6	10266084	31/01/2011	24,000,000.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	B06242788
7	10239854	24/08/2010	134,000,000.00	UNION BANK OF INDIA	M-11, 1ST FLOOR, MIDDLE CIRCLE, CONNAUGHT CIRCUS, NEW DELHI, DELHI - 110001, INDIA	A95053898
8	10193379	14/12/2009 *	1,500,000,000.00	BANK OF INDIA	PARLIAMENT STREET BRANCH, PTI BUILDING, 4 SANSAD MARG, NEW DELHI, DELHI - 110001, INDIA	A77070456
9	10185804	30/10/2009	27,680,000.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	A73561201
10	10187087	14/10/2009	20,000,000.00	BANK OF INDIA	P.T.I. BUILDING, 4, PARLIAMENT STREET, NEW DELHI, DELHI - 110001, INDIA	A73474769
11	10150158	24/12/2011 *	2,140,000,000.00	Bank of India	NEW DELHI LARGE CORPORATE BRANCH, PTI BUILDING, 4 SANSAD MARG, NEW DELHI, DELHI - 110001, INDIA	B28839249
12	10016399	08/08/2006	780,000,000.00	BANK OF INDIA LIMITED	PARLIAMENT STREET, 4 PTI BUILIDING,, NEW DELHI, DELHI - 110001, INDIA	A03891264
13	80010395	08/08/2006 *	780,000,000.00	BANK OF INDIA LIMITED	PARLIAMENT STRRET,, 4 PTI BUILDING, NEW DELHI, DELHI - 110001, INDIA	-
14	80010392	08/08/2006 *	30,000,000.00	CANARA BANK	G 25SOUTH EXTENSION-1, NEW DELHI, DELHI - 110049, INDIA	-
15	80010397	08/09/2006 *	55,000,000.00	STATE BANK OF BIKANER AND JAIPUR	G 72CONNAUGHT PLACE, NEW DELHI, DELHI - 110001, INDIA	-
16	90280570	17/06/2005 *	20,200,000.00	STATE BANK OF BIKANER AND JAIPUR	CONNAUGHT PLACE, NEW DELHI, DELHI - 110001, INDIA	-
17	90276933	12/01/1998	223,800,000.00	CANARA BANK	G-25 SOUTH EXTN-1, NEW DELHI, DELHI - 110049, INDIA	-
18	90274869	12/01/1998	410,300,000.00	BANK OF BARODA	BANK OF BARODA BUILDING, 16 PARLIAMENT STREET, N EW DELHI, DELHI - 110001, INDIA	-
19	90279286	12/01/1998	410,300,000.00	BANK OF BARODA	BANK OF BARODA BUILDING, 16; PARLIAMENT STREET, NEW DELHI, DELHI - 110001, INDIA	-
20	90279279	24/04/1998 *	55,000,000.00	BANK OF BARODA	INDUSTRIAL FINANCE BRANCH, BANK OF BARODA BUILDING; PARLIAMENT STREET, NEW DELHI, DELHI - 110001, INDIA	-
21	90274857	24/12/1997	107,005,000.00	BANK OF BARODA	INDUSTRIAL FINANCE BRANCH, BANK OF BARODA BUILDIN G;16 PARLIAMENTSTRET BRANCH, NEW DELHI, DELHI - 1 10001, INDIA	-
22	90276919	29/11/1997 *	10,950,000.00	CANARA BANK	N.D.S.E. PART-I, NEW DELHI, DELHI, INDIA	-
23	90274837	24/04/1998 *	30,000,000.00	CANARA BANK	SOUTH EXTN.-I, NEW DELHI, DELHI, INDIA	-
24	90276898	24/04/1998 *	10,000,000.00	STATE BANK OF BIKANER AND JAIPUR	G-72; CONNAUGHT PLACE, NEW DELHI, DELHI, INDIA	-
25	90279213	24/04/1998 *	45,000,000.00	UNION BANK OF INDIA	BRAHAMPUTRA COMPLEX, SEC-29, NOIDA, UTTAR PRADESH, INDIA	-
26	90276874	30/07/1997	28,100,000.00	PERADESHIYA INDUSTRIAL AND INVESTMENT CORPORATION O F U.P.LIMITED	PICUP BHAWAN; GOMTI NAGAR, LUCKNOW, UTTAR PRADESH, INDIA	-
27	90279200	24/04/1998 *	60,000,000.00	BANK OF INDIA	PTI BUILDING, 4-PARLIAMENT STREET, NEW DELHI, DEL HI, INDIA	-
28	90274753	18/04/1997	15,000,000.00	DEG-DEUTSCME INVESTITIONS-UND ENTWICKLUNGSGESELLSC HAFT MBH.	BELVEDERESTRASSE-40, 50933; KOLN; FEDERAL REPUBLIC OF GERMANY,	-
29	90281230	18/04/1997	15,000,000.00	DEG-DEUTSCHE INVESTITIONS UND ENTWICKLLINGSGESELLS CHAFT MBH	BWLVEDERASTRASSE 40, 50933 KOLN (MUNGARADORF) FEDERAL REPUBLIC OF GERM, LUCKNOW, UTTAR PRADESH, INDIA	-
30	90276804	29/11/1996	128,870,000.00	CANAR BANK	G-25 N.D.S.E. PART- 1, NEW DELHI, DELHI, INDIA	-
31	90279070	29/11/1996	335,800,000.00	UNION BANK OF INDIA	BRAHMAPUTRA COMPLEX, SEC-29; NOIDA, GHAZIABAD, UTTAR PRADESH, INDIA	-
32	90278984	23/04/1996	335,800,000.00	BANK OF INDIA	BRAHMAPUTRA COMPLEX, SEC-29, NOIDA, DELHI, INDIA	-
33	90274600	14/02/1996	74,600,000.00	STATE BANK OF BIKANER AND JAIPUR	G-72; CONNAUGHT CIRCUS, NEW DELHI, DELHI - 110001, INDIA	-
34	90281217	13/04/1998 *	42,690,000.00	STATE BANK OF BIKANER AND JAIPUR	G- 72; CONNAUGHT CIRCUS, NEW DELHI, DELHI, INDIA	-
35	90273385	13/04/1998 *	42,690,000.00	STATE BANK OF BIKANER AND JAIPUR	G-72; CONNAUGHT PLACE, NEW DELHI, DELHI - 110001, INDIA	-
36	90281216	25/09/1995	42,690,000.00	STATE BANK OF BIKANER AND JAIPUR	G- 72; CONNAUGHT CIRCUS, NEW DELHI, DELHI - 110001, INDIA	-
37	90278881	30/08/1995	144,000,000.00	BANK OF INDIA	PTI BUILDING, 4-SANSAD MARG, NEW DELHI, DELHI - 110001, INDIA	-
38	90276716	30/08/1995	145,295,000.00	BANK OF BARODA	16 SANSAD MARG, NEW DELHI, DELHI - 110001, INDIA	-
39	90276704	04/07/1995	15,000,000.00	CANAR BANK	N.D.S.E. PART- 1, NEW DELHI, DELHI, INDIA	-
40	90278866	04/07/1995	15,000,000.00	CANARA BANK	N.D.S.E. PART-I, NEW DELHI, DELHI, INDIA	-
41	90274539	20/06/1995	25,000,000.00	BANK OF BARODA	INDUSTRIAL FINANCE BRANCH, PARLIAMENT STREET BRANCH, NEW DELHI, DELHI, INDIA	-
42	90278861	20/06/1995	25,000,000.00	BANK OF BARODA	INDUSTRIAL FINANCE BRANCH, 37; SHAHEED BHAGAT SINGH MARG, NEW DELHI, DELHI, INDIA	-
43	90274518	15/05/1995	15,000,000.00	BANK OF BARODA	INDUSTRIAL FINANCE BRANCH, PARLIAMENT STREET BRANCH, NEW DELHI, DELHI, INDIA	-
44	90276657	20/12/1994	7,500,000.00	STATE BANK OF BIKANER AND JAIPUR	G-72; CONNAUGHT CIRCUS, NEW DELHI, DELHI, INDIA	-
45	90274435	12/12/1994	20,000,000.00	UNION BANK OF INDIA	BRAHAM PUTRA CMPLEX, SECTOR- 29, NOIDA, UTTAR PRADESH, INDIA	-
46	90278752	12/12/1994	20,000,000.00	UNION BANK OF INDIA	BRAHAM PUTRA COMPLEX, SEC-29; NOIDA, NOIDA, UTTAR PRADESH, INDIA	-
47	90274434	08/12/1994	30,000,000.00	BANK OF BARODA	INDUSTRIAL FINANCE BRANCH, PARLIAMENT STREET BRANCH, NEW DELHI, DELHI, INDIA	-
48	90273363	25/09/1995 *	90,000,000.00	UNION BANK OF INDIA	SECTOR- 29, NOIDA, UTTAR PRADESH, INDIA	-
49	90281212	13/04/1998 *	90,000,000.00	UNION BANK OF INDIA	BRAHAM PUTRA CMPLEX, SECTOR- 29, NOIDA, UTTAR PRADESH, INDIA	-
50	90274404	18/08/1994	10,000,000.00	CANAR BANK	SOUTH EXTENSION- 1, NEW DELHI, DELHI, INDIA	-
51	90278711	18/08/1994	10,000,000.00	CANARA BANK	SOUTH EXTN.-I, NEW DELHI, DELHI, INDIA	-
52	90278706	02/08/1994	15,000,000.00	STATE BANK OF BIKANER AND JAIPUR	G-72; CONNAUGHT CIRCUS, NEW DELHI, DELHI, INDIA	-
53	90274397	21/07/1994	20,000,000.00	BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, PARLIAMENT STREET, NEW DELHI, DELHI, INDIA	-
54	90276623	14/11/1994 *	21,300,000.00	BANK OF INDIA	NEW DELHI INDUSTRIAL FINANCE BRANCH, 37; SHAHEED BHAGAT SINGH MARG, NEW DELHI, DELHI - 110001, INDIA	-
55	90273360	13/04/1998 *	77,100,000.00	CANARA BANK	SOUTH EXTN-I, `, NEW DELHI, DELHI, INDIA	-
56	90281210	13/04/1998 *	77,100,000.00	CANARA BANK	SOUTH EXTN-1, NEW DELHI, DELHI, INDIA	-
57	90274357	18/02/1994	10,000,000.00	CANARA BANK	SOUTH EXTENSION PART- 1, NEW DELHI, DELHI, INDIA	-
58	90274356	11/02/1994	10,000,000.00	CANARA BANK	SOUTH EXT. PART-I, NEW DELHI, DELHI, INDIA	-
59	90278487	30/07/1991	28,100,000.00	PRADESHIYA INDUSTRIAL AND INVESTMENT CORP. OF U.P. LIMITED	PICUP BHAWAN, GOMTI NAGAR, LUCKNOW, UTTAR PRADESH, INDIA	-
60	90276488	06/06/1994 *	21,300,000.00	BANK OF INDIA	NEW DELHI INDUSTRIAL FINANCE BRANCH, 37; SHAHEED BHAGAT SINGH MARG, NEW DELHI, DELHI - 110001, INDIA	-
61	90276476	25/10/1994 *	50,000,000.00	CANARA BANK	N.D.S.E. PART-I, NEW DELHI, DELHI, INDIA	-
62	90274095	07/10/1994 *	12,000,000.00	STATE BANK OF BIKANER AND JAIPUR	G-72; CONNAUGHT CIRCUS, NEW DELHI, DELHI, INDIA	-
63	90276445	25/10/1994 *	13,000,000.00	CANARA BANK	N.D.S.E. PART-I, NEW DELHI, DELHI - 110001, INDIA	-
64	90274029	14/09/1995 *	21,300,000.00	BANK OF INDIA	NEW DELHI INDUSTRIAL FINANCE BRANCH, 37; SHAHEED BHAGAT SINGH MARG, NEW DELHI, DELHI - 110001, INDIA	-
65	90276411	27/10/1994 *	16,000,000.00	UNION BANK OF INDIA	HAROLA BRANCH, NOIDA, DELHI, INDIA	-
66	90274018	31/07/1987	101,800,000.00	BANK OF BARODA	INDUSTRIAL FINANCE BRANCH, PARLIAMENT STREET, NEW DELHI, DELHI, INDIA	-
67	90274014	12/10/1994 *	101,800,000.00	BANK OF BARODA	H-11; CONNAUGHT CIRCUS, NEW DELHI, DELHI - 110001, INDIA	-
68	90276407	15/05/1995 *	21,300,000.00	BANK OF INDIA	NEW DELHI INDUSTRIAL FINANCE BRANCH, 37; SAHEED B HAGAT SINGH MARG, NEW DELHI, DELHI - 110001, INDIA	-
69	90274010	14/09/1995 *	21,300,000.00	BANK OF INDIA	NEW DELHI INDUSTRIAL FINANCE BRANCH, 37; SHAHEED BHAGAT SINGH MARG, NEW DELHI, DELHI - 110001, INDIA	-
70	90276406	15/05/1995 *	21,300,000.00	BANK OF INDIA	NEW DELHI INDUSTRIAL FINANCE BRANCH, 37; SAHEED BHAGAT SINGH MARG, NEW DELHI, DELHI - 110001, INDIA	-
* DATE OF CHARGE MODIFICATION

NATURE OF OPERATIONS

Subject (hereinafter referred to as ‘the Company’) is a manufacturer of polyester film and engineering plastics.

OPERATIONS REVIEW

The Gross Revenue from operations during the year is Rs. 9644.259 Millions as compared to Rs. 7478.538 Millions in the previous year, an increase of 29%. The increase is primarily on account of higher sales volume of Polyester Chips, Engineering Plastics and Specialty Polymers. Though the sales volume of Polyester Films decreased marginally, revenues of Polyester Film increased by 5.9% The margins in the Polyester Film business remained under pressure due to an adverse demand supply situation caused by commissioning of further new capacities in 2012-13. The collective demand for Polyester Film in India in FY 2012-13 and FY 2011-12 increased to such an extent that all the loss of demand caused in the domestic market due to the ban on use of Plastics Films in packing of Pan Masala and Gutkha during FY 2010-11, was more than recovered. To mitigate the effect of loss of sales volumes due to the aforesaid ban and cyclicality in its markets, the Company continued to focus on increasing the proportion of Value Added and specialty products in its portfolio and also initiated engagements with key accounts to ink long term sales agreements indexed to the raw material. The sales of Value Added products and Specialty films increased from 8898 MT in 2011-12 to 10493 MT in 2012-13

To counter the threat of cheaper imports of Engineering Plastics in CFL segment, development of cost effective formulations yielded the desired results and the Company could regain erstwhile lost market share. The Company witnessed a material growth of 49% in sales of Engineering Plastics products. Consequently, the Net Sales of Engineering Plastics increased from Rs. 703.684 Millions to Rs. 1052.807 Millions.

As a result of a focused strategy adopted by the management, the sales of Polyester Chips increased by about 180% both in quantity and value terms.

The Company’s initiative to diversify into Specialty Polymers is on track and is likely to yield good results in the following years. The Sales volume of Specialty Polymers increased from 472 MT in FY2011-12 to 2241 MT in FY2012-13, an increase of 375% with corresponding sales value increasing from Rs. 56.898 Millions to Rs. 398.368 Millions.

As a result of various initiatives and capacity expansions over the last five years, the Net Sales have grown at a CAGR of 22% pa, viz from Rs. 3191.821 Millions in FY2007-08 to Rs. 8712.944 Millions in FY2012-13.

The production of Polyester Film was marginally lower at 50,076 MT as compared to 51,744 MT during the year 2011-12. The capacity utilization in Polyester Films was approx. 88%, which is a good performance considering that the capacity was enhanced in FY 2010-11.

Pursuant to the clarification issued by Ministry of Corporate Affairs, Government of India dated 9th August 2012, the foreign exchange fluctuation on foreign currency borrowings for Capital goods has been capitalized. Interest and financial expenses during the year were 2.99% of Net Sales with overall leveraging at prudent levels of 1.48.

Subsequent to the registration of Bio-mass based Thermal Energy generation project of the Company by the Executive Board of the Clean Development Mechanism (CDM) under United Nations Framework Convention on Climate Change in its meeting dated 15th April 2011, the Company has started to earn Certified Emissions Reductions (CERs) with effect from November 2010. As the Company is aware of ongoing global environment concerns, it has committed to enhance its Thermal Energy generation capacity by installing an additional Bio-mass based Thermal Energy generation project of 10 million kilo calories during FY2013-14 to reduce its dependence on Furnace Oil based thermal energy generation.

MANAGEMENT DISCUSSION AND ANALYSIS

INDIAN ECONOMY

India’s GDP grew at a rate of 5% in 2012-13 as compared to 6.9% in 2011-12, the lowest in a decade. There has been a significant slowdown in comparison to the preceding two years, primarily due to deceleration in industrial growth, more specifically in private investment. Rising cost of credit and weak domestic business sentiment, added to this decline. Moreover, the rate of growth of consumption expenditure (public and private) decelerated to 4.1% as compared to 8.1% in last fiscal. Estimated gross fiscal deficit worsened to 5.1 per cent of GDP for 2012-13 and the global economic turmoil exerted pressure on the exchange rate.

Taking into account a macro view of the overall economy and keeping in mind the difficult global environment, the RBI expects GDP growth in 2013-14 to be in the band of 6.1 – 6.7%

The overall WPI for FY 2012-13 stood at 7.6%, as compared to 8.9% in 2011-12. Thus, while month-wise headline inflation averaged 7.6% during April 2012 – March 2013, non-food manufacturing sector inflation (i.e. core inflation as per RBI’s definition) averaged much lower at 4.8%, indicating that inflation was driven mainly by supply side factors which could not be affected by the tight monetary policy stance of the RBI.

India’s inflation is largely structural, driven predominantly by agricultural supply constraints and global cost push. While the macroeconomic numbers were not very weak when compared to the global economic environment, they were marked by significant volatility evident not only in the numbers but also in the sentiments primarily driven by the global clues and policy responses to cater to inflation.

OPERATIONAL PERFORMANCE

BUSINESS SEGMENT

THIN BOPET FILMS

THE PRODUCT

PET is a versatile plastic used to produce a wide spectrum of packaging material for beverages, food, personal and home care, pharmaceuticals, as well as other consumer and industrial products. PET is a strong, lightweight, non-reactive and inert material, thus making an ideal product to protect food, beverages and pharmaceuticals against oxidation and aroma loss to enable longer shelf life. Various Health and Safety conscious agencies around the world have approved PET as a safe material for use in packaging foods and beverages. The PET Film industry comprises of both thin (50 micron and under) and thick films (above 50 microns)

GLOBAL MARKETS

Overview*: Globally, the BOPET Film industry is estimated to grow at around 7% during the next few years. Currently, the Central and East-Asian region is the largest BOPET film producing region, accounting for more than 50% of the installed BOPET film capacity in the world.

Growth drivers: The BOPET film segment is expected to grow on account of :

• Increase in demand, as FMCG (Fast Moving Consumer Goods) companies increase their reach in rural areas in developing economies, primarily in Asia. Smaller SKU’s in flexible packaging are being used by leading brands to gain access to new customer segments near the middle of the economic pyramid

• Focus on sustainability and environmental concerns causing a shift from other substrates (such as PVC) to BOPET, being a more environment friendly material. However price premiums are currently not available for the same.

Some emerging themes in the flexible packaging market are:

• Cost optimisation through laminate structure simplification. Thinner laminate structures offering similar performance offers opportunities for the growth of value added and speciality films.

• Changes in demography and lifestyle in fast developing and emerging economies. Enhanced consumption of ready to eat /snack foods by cash rich - time poor, double income families is driving growth for value added and speciality flexible films.

INDIAN MARKETS

Overview : Due to some recent capacity additions, the total installed production capacity in India is now approx. 500,000 MTPA of Thin BOPET films. Of India’s production of 350,000 MTPA, around 70% is consumed within the country, while the balance is exported. Continuous capacity addition over the years has improved India’s reach and share in global markets. The domestic demand for Thin BOPET film is estimated to be growing at a CAGR (Compounded Annual Growth Rate) of ~ 15%.

Growth and drivers: The growth in India is driven by demographic and lifestyle changes (rising middle class population), increasing investments in supermarkets, hypermarkets, innovative packaging and expansions in the organised retail sector. This has resulted in increased demand for innovative and attractive high quality packaging. The current per capita packaging consumption in India is less than one third that of developed economies and thus offers tremendous growth opportunities

The recent legislation regarding Foreign Direct Investment (FDI) in retail may enhance the demand for flexible packaging as store brands in low cost packing are expected to be introduced by the new entrants in this space. However a better clarity on the long term policy would enable global majors to take investment decisions and progress towards commencement of operations in India.

COMPANY OVERVIEW

The Company’s vertically integrated operations based out of Khatima, Uttarakhand comprise of PET chips, Thin BOPET Films and Metalised Thin BOPET Film manufacturing facilities.

Ester offers a diversified portfolio of value added and speciality BOPET Films. The Company enjoys good business relations with marquee clients across India. Its global footprint extends across 75 countries, which include not only developed economies like the USA and Europe, but also the Middle East, Russia, Latin America,

Africa and South East Asia.

COMPETITIVE EDGE

Scale: Ester has consistently invested in improving operating efficiencies and increasing capacity through modifications and brown field expansions, providing economies of scale and possessing the ability to seamlessly cater to growing demand from its markets and customers.

Technology: Ester is the second manufacturer in India and the third in the world to install the cost-effective Continuous Polymerisation (CP) and Direct Casting technology, significantly reducing capital cost and overall cost of production.

Integrated Operations: Vertical integration has enabled a reduction in operational cost and superior product quality on a consistent basis. Forward integration into metallised films and other Value Added products enables better realisations which improves profitability.

Capacity Utilisation: Ester’s passion towards internal efficiency is reflected in optimum capacity utilisation over the past few years, making the operations cost-effective and providing additional volumes for business growth.

Product Portfolio: Ester offers the widest variety of Value Added and speciality BOPET Films among its peers; during FY 2012-13, volumes of Value Added products grew by 17.9% despite adverse effect on sales volumes of certain value added products as a result of ban on use of plastic films in packing of Pan Masala and Gutkha which was in full effect across India in FY 2012-13.

Reach: Ester’s diversified geographic presence (domestic and global) mitigates the risks associated with concentration of markets. The increasing global presence enables Ester to strengthen its growth agenda.

Processes and Systems: Ester continues its focus on designing and implementing business processes and systems which would not only reduce constant manual intervention but also allow the organisation to enhance value on a sustainable basis. Some of the business procesess which were designed and implemented were the ‘Order to Cash Process’ and the Credit Management Process for domestic sales.

PERFORMANCE OVERVIEW (FY2012-13)

In FY 2012-13, Ester optimised its enhanced production capability and maintained high levels of operating efficiencies through the year. During the year there were new capacity additions globally which added to the surplus capacity and widened the demand and supply gap. The operating margins were under severe pressure due to a weak pricing environment which was also impacted by low economic growth in both domestic and overseas markets. In these challenging times, Ester continued to remain focused on its long term strategy of:

1. Optimizing production levels. Company was able to sustainably operate the New Film plant at a capacity utilization of over 90% during the FY 2012-13

Focus on increasing market share in select profitable overseas markets. Ester increased sales volumes of Value Added products in select profitable overseas markets by 19.3%. Keeping in mind the weak global demand and pricing scenario, a conscious choice was made to identify and market products in select overseas markets which offered profitable growth opportunities, specially for value added and speciality products. This focussed approach ensured better realisation and higher sales volumes of value added products in export markets despite the challenging environment. The share of value added products in overseas markets grew from 23% to 32% in 2012-13.

2. Increasing volumes of Value Added products. The overall volume of Value Added products grew by 17.9% despite the weak demand and challenging pricing environment.

3. Enhancing Brand Equity by participating in Industrial Fairs and Exhibitions (Pack Expo 2012, USA)

4. Maintaining focus on operational efficiencies by taking steps to

a. Reduce Cost

b. Reduce Waste

c. Improve Sustainability

OUTLOOK

While the global demand for BOPET films will continue to grow, pressure on margins due to demand supply imbalance as new capacity additions which are in the offing, is likely to continue in 2013-14. Ester had devised a long term 3-pronged strategy to ensure that it is able to meet and exceed the expectations of its shareholders and stakeholders

1. Focus on procuring a robust customer profile, whose innovation and development priorities are aligned with Ester. This initiative is not only expected to support Ester in further enhancing the robustness of its sales product mix, but is also expected to guide Ester in its efforts to develop innovative products for the future.

2. Progress long term relationships and partnerships with key customers.

3. Assess market needs accurately and endeavour to be a solution provider

This implementation of the strategy commenced in 2012-13 and the green shoots of the results are visible in the focus areas. Ester had initiated developmental projects with key FMCG players in 2012-13 which would be commercialised in 2013-14. The developmental projects would be scaled up in the months ahead which would help bolster Ester’s revenue and profit growth. Building on the initiatives in the area of building long term relationships through partnerships, Ester has planned to expand this portfolio and add new key customers in 2013-14.

Ester’s other priorities to achieve the stated objective are:

• Operational Excellence

· Optimizing asset utilisation

· Continuous cost reduction

• Focus on Innovation and value selling

· Build on sales competency to deliver complete customer solutions

· New product development through the process of co-creation with key customers

Although the business is passing through a volatile phase, Ester is confident that an effective implementation of its strategy will enable the creation of a robust business model which will ensure value maximisation for its shareholders and stakeholders.

ENGINEERING PLASTICS

THE PRODUCT

Engineering Plastics (such as Polybutylene Terephthalate, Polyamides and Polycarbonate) have better mechanical and/ or thermal properties as compared to commodity plastics (such as Polystyrene, Polypropylene and Polyethylene). Engineering Plastics usually exhibit a combination of properties (such as mechanical strength, heat resistance, and impact and abrasion resistance) that make them suitable for applications in various industries such as automotive, electrical and electronics, medical, consumer durables and telecommunication.

Ester manufactures and sells its products (which are compounds of PBT, PET, PA6, PA66, PC, ABS, POM and their respective blends) under the brand name “Estoplast”.

INDUSTRY OVERVIEW

Global: The global engineering plastics market (estimated at 20.6 million metric tons in 2013), is expected to grow at a CAGR of 5% and will therefore be approx. 29 million metric tons by 2020. In terms of value, the demand for engineering plastics is projected to grow from US$ 67 billion in 2013 to approximately US$ 113.7 billion by 2020 – translating to a CAGR of 7.9%. Most of this growth is expected to emerge from developing regions like Asia-Pacific and South America and certain regions of Europe and Middle-East.

Asia-Pacific: The Asia-Pacific region accounts for 39% share of the global engineering plastics market, and is growing at a CAGR of 8.8%. The Engineering Plastics market in Asia-Pacific, led by India and China, has seen a higher growth over the last few years than the global market. Increased purchasing power and advancements in new applications across various industries such as automotive, construction and infrastructure, transportation, telecommunications and household appliances have primarily contributed to this growth. Polyamides and PBT are expected to achieve the highest growth in this region at around 10-11% from 2010 to 2015.

India: India, with its low per capita consumption of engineering plastics as compared to the global average, offers good growth prospects. The EP compounds market in India, estimated at about 125000 MT, is expected to grow at a CAGR of ~ 14% till 2015. This impressive growth is expected primarily due to rapid industrialization, increased investments in infrastructure development and a relatively stable economy. PC, PBT and Polyamides would account for a major portion of the projected growth. The automotive sector contributes to about one half of

the engineering plastics consumption in India.

PERFORMANCE OVERVIEW

The actions initiated during FY2011-12 (with respect to teambuilding, strengthening customer base and enhancing brand visibility) yielded desired results and helped in delivering a better performance in FY2012-13. During the financial year 2012-13, their Engineering Plastics business registered a material sales growth of approximately 50%, significantly ahead of industry growth. Their focused customer acquisition process and improved product range helped in enhancing their active customer base by ~ 50%. Approvals were also secured from various Original Equipment Manufacturers (OEMs) in the automotive, electrical and appliances industries.

Some of the key actions that contributed towards this success include;

• Focus on new product development to meet customer needs that helped in expanding their product portfolio from 250 to approximately 300 grades, including introduction of a new polymer (Polyoxymethylene -POM) – in their product basket.

• Enhanced customer satisfaction through an improved distribution channel, consistent product quality and improved response time.

• Focused efforts to regain lost volumes in the CFL segment, with ~ 60% growth achieved in FY 2012-13.

• Sustained efforts for productivity/efficiency improvement at the manufacturing facility.

Key drivers for Industry Growth

· Increased usage of plastics in the automotive industry to reduce the weight of vehicles for better fuel efficiency and lesser emissions

· Increased focus by the government to promote usage of energy-saving light equipment.

· Enhanced safety awareness resulting in higher usage of low voltage switch gear

· New applications for engineering plastics being developed across various industries

· Shifting of manufacturing bases by several global players (mainly automotive and electrical) to India for reduced production costs

· Increased government and private spending in construction and infrastructure projects

FUTURE OUTLOOK

Buoyed by the impressive recovery in FY2012-13, wherein Ester’s Engineering Plastics business grew by almost 50% (significantly outperforming the Industry)– they intend to maintain their growth performance in FY2013-14 as well. They expect to further improve their performance, with respect to sales as well as profitability, through their focused approach in the EP business. Some of the key actions that would help in ensuring profitable growth include;

• Continued focus on new product/application development led by a closer engagement with their customers

• Keeping abreast of technological developments and building R and D capability aligned to the same

• Enhancing relationship with OEMs/Tier 1/Tier 2 customers in the automotive and electrical segments and securing approvals for long-term sustainability

• Capacity enhancement to support their growth aspirations

• Exploring and developing opportunities in the Exports Market

• Continuous improvement in systems and processes to enhance business robustness

• Enhancing Ester’s brand equity

• Exploring opportunities for strategic alliances

• Development of Halogen and Phosphorous free compounds in line with their “green initiatives” programme

• Development of cost-effective formulations to counter the threat of lower priced Chinese imports

• Exploring opportunities for entering new market segments

FIXED ASSETS

Land (Freehold)
Buildings
Plant and Machinery
Furniture and Fixtures
Lease Hold Improvements
Office Equipments
Vehicles

Software’s

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDEING ON 30.09.2013

(Rs. in millions)

Sr. No.	Particular	Three Months Ended		Six Months Ended
		30.09.2013 (Unaudited)	30.06.2013 (Unaudited)	30.09.2013 (Unaudited)
1.	Income from Operations
	Net Sales	2493.365	2028.200	4521.565
	Other Operating Income	27.652	22.962	50.814
	Net Sales/Income from Operations	25.21.017	2051.162	4572.179

2.	Expenditure
	Consumption of Raw Material	1885.988	53.795	3314.518
	Change in Inventories of Finished Goods, Work-In-Progress and Stock In Trade	(136.669)	53.795	(82.874)
	Employee Benefits Expenses	93.537	92.396	185.933
	Depreciation and Amortization Expenses	74.918	72.550	147.468
	Loss / (Profit) on Foreign Exchange Fluctuation	(13.749)	(5.989)	(197.738)
	Other Expenses	455.570	336.632	792.202
	f) Total	2359.595	1977.914	4337.509

3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	161.422	73.248	234.670

4.	Other Income	3.316	6.103	9.419

5.	Profit Before Interest and Exceptional Items (3+4)	164.738	79.351	244.089

6.	Interest	87.882	64.052	151.934

7.	Profit After Interest but before Exceptional Items (5-6)	76.856	15.299	92.155

8.	Exceptional Items	--	--	--

9.	Profit from Ordinary Activities before Tax (7+8)	76.856	15.299	92.155

10.	Tax Expense
	Current Tax	15.388	3.061	18.449
	Less: Minimum Alternative Tax Credit	(15.388)	(3.061)	(18.449)
	Deferred Tax Charge/ (credit)	24.571	5.123	29.694

11.	Net Profit from Ordinary Activities after Tax (9-10)	52.285	10.176	62.461

12.	Extraordinary Item (net of expense)	--	--	--

13.	Net Profit for the period (11-12)	52.285	10.176	62.461

14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	314.469	314.469	314.469

15.	Reserves Excluding Revaluation Reserve	--	--	--

16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	0.83	0.16	0.99
	b) Basic and diluted EPS after extraordinary items	0.83	0.16	0.99

17.	Public Shareholding
	-Number of Shares	17550264	17550264	17550264
	- Percentage of Shareholding	27.90%	27.90%	27.99%

18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	Nil	Nil	Nil

	b) Non Encumbered
	- Number of Shares	45343442	45343442	45343442
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100%	100%	100%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	72.10%	72.10%	72.10%

Particulars	3 Months ended on June 30, 2013
Pending at the beginning of the quarter	Nil
Received during the quarter	10
Disposed of during the quarter	9
Remaining unresolved at the end of the quarter	1

NOTES

The above results for the quarter ended September 30, 2013 have been reviewed by the Audit Committee and have been approved by the Board of Directors at the meeting held on October 5, 2013.
Previous year previous period figures have been regrouped I reclassified to confirm to current period classification.
Board of Directors has approved preferential allotment of 2,07,50,000 Zero Coupon warrants convertible in to equity shares at a price of Rs. 10.10/- each to a Non-Promoter Entity, in its meeting held on 3rd October, 2013 subject to shareholders and regulatory approvals.
During Re September quarter, in court-convened meetings, the members, secured creditors and unsecured creditors have approved Re Scheme of Arrangement between Ester industries Limited and Sriyam Impex Private Limited and their respective shareholders and creditors.

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDING ON JUNE 30, 2013

(Rs. In Millions)

Sr. No.	Particular		Three Months Ended		Six Months Ended
			30.09.2013 (Unaudited)	30.06.2013 (Unaudited)	30.09.2013 (Unaudited)
1		Segment Revenue

		Polyster Chips and Films	2174.828	1753.145	3927.973
		Engineering Plastic	346.189	298.017	644.206

		Net Sales / Income from Operation	2521.017	2051.162	4572.179

2		Segment Results

		Polyster Chips and Films	253.977	156.225	410.203
		Engineering Plastic	21.211	12.149	33.360

		Total	275.189	168.374	443.563

		Less :Interest	87.881	64.052	151.934
		Less : Other Unallocable Expenses and Extra Ordinary Items	110.451	89.023	199.474

		Total Profit Before Tax	76.856	15.299	92.155

3		Capital Employed

		Polyster Chips and Films	4195.612	3977.945	4195.612
		Engineering Plastic	494.826	399.595	494.826
		Unallocated	(2042.508)	(1781.528)	(2042.508)

		Total	2647.929	2596.012	2647.929

STATEMENT OF ASSETS AND LIABILITIES

Particulars	As at 30.09.2013

I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	314.469
(b) Reserves & Surplus	2333.460
Total Shareholders’ Funds (1) + (2)	2647.929

(3) Non-Current Liabilities
(a) long-term borrowings	1289.579
(b) Deferred tax liabilities (Net)	219.255
(c) Other long term liabilities	47.038
Total Non-current Liabilities (3)	1555.872

(4) Current Liabilities
(a) Short term borrowings	1913.796
(b) Trade payables	255.395
(c) Other current liabilities	414.818
(d) Short-term provisions	23.837
Total Current Liabilities (4)	2607.846

TOTAL	6811.647

II. ASSETS
(1) Non-current assets
(a) Fixed Assets	3937.244
(b) Non-current Investments	0.171
(c) Long-term Loan and Advances	151.043
(d) Other Non-current assets	5.158
Total Non-Current Assets	4093.616

(2) Current assets
(a) Current investments	0.000
(b) Inventories	1302.997
(c) Trade receivables	1151.059
(d) Cash and cash equivalents	63.484
(e) Short-term loans and advances	159.001
(f) Other current assets	40.490
Total Current Assets	2717.031

TOTAL	6811.647

WEBSITE DETAILS

PROFILE

Subject an ISO 9001:2008,ISO 22000:2005,TS16949:2002 certified company, established in 1985, is a leading manufacturer and supplier of polyester films and engineering plastic compounds. Ester’s corporate headquarter is located in Gurgaon, Haryana while Ester’s manufacturing facility is located at Khatima, in the state of Uttarakhand, India.

As a renowned and established manufacturer of polyester Films marketed under the brand ‘UmaPET' and engineering plastics marketed under the brand ‘Estoplast’, we are globally recognised as a reputed supplier of premium range of products in industry.

With their state-of-the-art manufacturing plant, skillfully managed operation and committed work force, they continuously strive to meet their commitment towards total customer satisfaction. By offering high quality and cost effective products, they have gained the recognition, trust and support of their clients worldwide.

MANAGEMENT TEAM

Ashok Kumar Agrawal

Business Head – Polyester Film

Ashok serves as Executive Director and Business Head-Film of the Company. Ashok has over 30 years of operational experience across production, planning and control, supply chain, engineering processes, sales and marketing, quality and people management. Under Ashok’s leadership Ester successfully built and commissioned its film production line-2 and line-3. Ashok specializes in operations, business planning and general management and has led several change management initiatives within the polyester film business at Ester. Ashok earned his bachelor's degree in Electrical Engineering from Jabalpur University.

Pradeep Kumar Rustagi

Chief Financial Officer

Pradeep serves as Executive Director and Chief Financial Officer (CFO) of Ester and oversees the finance and accounting department. Pradeep has 23 years experience with leadership roles in financial planning, accounts, budgeting and MIS, liaison with banks and financial institutions, statutory compliance and excise. As CFO, Pradeep is responsible for Ester's financial operations and investor relations. Pradeep joined Ester as a Management Trainee over 21 years ago. Pradeep is a qualified Chartered Accountant from The Institute of Chartered accountants of India.

Palash Aggarwal

Head HR

As Head of Human Resources at Ester, Palash is responsible for driving organizational development strategies that support the company’s global growth through leadership building, talent management and various OD interventions across the board. Palash has 19 years of rich experience managing human capital in manufacturing, IT, and Software industries. He has been instrumental in establishing people practices and a performance driven culture in many of his past organizations. In addition to a Bachelor’s Degree in Science, Palash also holds a Master’s Degree in Human Resource Management from Jiwaji University.

Sunil Kumar Soni

Chief Information Officer

As Chief Information Officer, Sunil is responsible for shaping Ester's long-term technology vision and driving innovation across the company. Sunil has more than 25 years of rich work experience in the technology industry, out of which the last ten years have been in senior management and leadership roles. He comes with an excellent blend of technical, business and team management know-how. He has previously managed various projects and deployments in the areas of enterprise applications, strategic outsourcing, business processes, infrastructure management and application development and maintenance. Sunil skillfully blends technical expertise with creativity, persuasion and empathy to drive people to result. Prior to joining Ester, Sunil was Senior Vice-President at Polaris Software. Sunil holds a bachelor's degree in Mechanical Engineering from Punjab Engineering College, Chandigarh and also has a B.Sc. (Mathematics) Degree from Agra University.

Udit Baluja

Business Head- Engineering Plastics

Udit heads the EP Business of Ester Industries Limited. He comes with a rich experience of over 22 years in P&L Management, Strategic Planning, Operations Management including manufacturing and supply chain, Sales & Marketing, establishing systems and processes for maintaining high SSHE (Security, Safety, Health and Environment) standards and leading large teams. Udit started his career as a Management Trainee in the Explosives Division of ICI India Limited, which went on to become a 100% subsidiary of Orica Ltd of Australia consequent to ICI’s divestment of its global explosives business. Before joining Ester, he has held many key positions across diverse functions at Indian Explosives Limited. Udit is a chemical engineering graduate from the Indian Institute of Technology, Kharagpur.

Sanjay T Kulkarni

Business Head- Specialty Polymer

Sanjay heads the Specialty Polymer Business of Ester Industries Ltd. Sanjay is a Chemical Engineer from KREC (now recognized as NITK) by qualification and has extensive experience of 32 years in Polyesters, Nylon and Engineering Plastics. He has worked with reputed companies like Century Enka Limited, Pearl Engineering Polymers, Futura Polymers in the past.

He has expertise in manufacturing, R and D, Business Development and has experience in entire range of Polysters viz. PET, PBT, PTT, PEN, PTN and PBN. He has been the main inventor in 27 patent applications filed (out of which about 20 have already been granted) in the USA, EU and India.

Rahul Bhatia

Chief Marketing Officer

Rahul Bhatia is Chief Marketing Officer at Ester. Rahul has a 19 year track record of growing businesses and markets, inspiring large teams - managing projects, change and risks.

Rahul’s experience spans across several areas including electrical/electronic, power, oil and gas and regulation. He has catered to both the government and private sector and various industries like utilities, textiles, chemical, pharmaceuticals, glass etc. Rahul also has experience in establishing systems and processes for maintaining high standards of HSSE (Health, Safety, Security and Environment) in the organization.

Before joining Ester, Rahul had worked with the BG Group (British Gas), Gujarat Gas, Schlumberger and Landis+Gyr.

After completing his Bachelor of Engineering (Instrumentation), from the University of Poona, Rahul did his Masters in Business Administration (Marketing and Finance) from Institute of Management Technology, Ghaziabad

BOARD OF DIRECTORS

Mr. Arvind Singhania

Chairman

Arvind’s vision and passion have been integral to Ester’s success, building the company from a small start up to one of India’s leading, most recognized polyester film manufacturing company. Arvind has been associated with the company since its inception. He has 28 years of rich and varied operations experience including production, supply chain, finance and people management. Under his tutelage, Ester has undertaken and seen tremendous success with its various expansion and modernization initiatives.

Mr. Ashok Kumar Agrawal

Whole time Director

Mr. Pradeep Kumar Rustagi

Whole time Director

Mr. Ashok Newatia