MIRA INFORM REPORT

Report Date :

07.03.2013

IDENTIFICATION DETAILS

Name :	SUPREME PETROCHEM LIMITED
Registered Office :	612, Raheja Chambers, Nariman Point, Mumbai - 400 021, Maharashtra
Country :	India
Financials (as on) :	30.06.2012
Date of Incorporation :	14.12.1989
Com. Reg. No.:	11-054633
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 :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufactures of Styrene Monomer and Polystyrene.
No. of Employees :	252 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 12300000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There appears sharp dip in the profitability of the company. However, networth of the company appears to be strong. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for business dealing at usual trade terms and condition

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	A (National Long-term rating)
Rating Explanation	Expected low risk of default. The capacity for payment of financial commitment is considered strong. The capacity may nevertheless be more vulnerable to adverse business or economic condition.
Date	July, 2012

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office :	612, Raheja Chambers, Nariman Point, Mumbai – 400012, Maharashtra, India
Tel. No.:	91-22-22883518-20
Fax No.:	91-22-22883521
E-Mail :	ravi_kuddyady@spl.co.in sl_mondkar@spl.co.in marketing@spl.co.in r_rangarajan@spl.co.in sara_dsouza@spl.co.in
Website :	http://www.supremepetrochem.com
Corporate Office :	Solitaire Corporation Park, Building No. 11, 5^th Floor, Andheri – Ghatkopar Link Road, Chakala, Andheri (East), Mumbai – 400093, Maharashtra, India
Tel. No.:	91-22-67091900
Fax No.:	91-22-40055681
Factory 1 :	Amdoshi, Wakan Roha Road, Post : Patansai, Taluka Roha, District Raigad - 402106, 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 – 600103, Tamilnadu, India

DIRECTORS

As on 30.06.2012

Name :	Mr. M. P. Taparia
Designation :	Chairman
Name :	Mr. Rajan B. Raheja
Designation :	Director
Address :	Rahejas GB Jukar Road, Juhu, Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	17.06.1954
Date of Appointment :	14.12.1989
DIN No.:	00037480
Name :	Mr. Aziz Parpia
Designation :	Director
Address :	9, Blooming Heights, 4, Pali Hill, Bandra (West), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	83 Years
Qualification :	LLB
Experience :	Senior Solicitor and Advocate with long experience in legal field.
Date of Appointment :	14.12.1989
DIN No.:	00003289
Name :	Mr. B. L. Taparia
Designation :	Director
Name :	Mr. Satish Raheja
Designation :	Director
Address :	Case Postal 3153, 1211 Geneva 3, Switzerland
Date of Birth/Age :	48 Years
Qualification :	B. Sc. Business Management
Experience :	Is a Director of various Companies. He is a Non-resident Indian and has experience in Business Management.
Date of Appointment :	22.11.1993
DIN No.:	00927801
Name :	Mr. S. J. Taparia
Designation :	Director
Address :	Giri Kunj, NS Road, 71, Marine Drive, Mumbai – 400020, Maharashtra, India
Date of Birth/Age :	66 Years
Qualification :	B. E. (Mechanical)
Experience :	Expertise and rich experience in technical, operational and marketing aspects of industrial products. Actively involved in industry forum.
Date of Appointment :	22.11.1993
DIN No.:	00112513
Name :	Mr. Hasmukh Shah
Designation :	Director
Address :	15, Dhanushya Society, Sama Road, Baroda – 390008, Gujarat, India
Date of Birth/Age :	77 Years
Qualification :	B. A.
Experience :	Long experience in industry and is the Ex-Chairman of IPCL besides being the Member of the Board of Directors of reputed Companies.
Date of Appointment :	17.10.1994
DIN No.:	00152195
Name :	Mr. M. S. Ramachandran
Designation :	Director
Address :	Q8, First Floor, Hauz Khas Enclave, New Delhi – 110016, India
Date of Birth/Age :	26.02.1945
Date of Appointment :	04.10.2007
DIN No.:	00943629
Name :	Mr. R. Kannan
Designation :	Director
Address :	21, Parthasarathy Puram, North Usman Road, T Nagar, Chennai – 600017, Tamilnadu, India
Date of Birth/Age :	23.09.1947
Date of Appointment :	06.10.2009
DIN No.:	00380328
Name :	Mr. Nihalchand Chauhan
Designation :	Director
Address :	Shripati Arcade, 20^th Floor, Flat No. 4, August Kranti Marg, Nana Chowk, Mumbai – 400036, Maharashtra, India
Date of Birth/Age :	20.11.1935
Date of Appointment :	27.04.2006
DIN No.:	00021782
Name :	Mr. Viren Raheja
Designation :	Alternate Director to Satish Raheja
Address :	Rahejas GB Jukar Road, Juhu, Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	13.06.1984
Date of Appointment :	23.04.2008
DIN No.:	00037592

SHAREHOLDING PATTERN

As on 31.12.2012

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	55200	0.06
Financial Institutions / Banks	25250	0.03
Foreign Institutional Investors	119117	0.12
Sub Total	199567	0.21
(2) Non-Institutions
Bodies Corporate	4610865	4.76
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	14874461	15.36
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	17023965	17.58
Any Others (Specify)	1417755	1.46
Trusts	27589	0.03
Non Resident Indians	1325494	1.37
Clearing Members	47805	0.05
Foreign Corporate Bodies	16867	0.02
Sub Total	37927046	39.17
Total Public shareholding (B)	38126613	39.37
Total (A)+(B)	96838613	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)	96838613	0.00

BUSINESS DETAILS

Line of Business :

Manufactures of Styrene Monomer and Polystyrene.

Products :

ITC Code	Product Descriptions
39031909	Polystyrene
39031100	Expandable Polystrene

PRODUCTION STATUS AS ON 30.06.2011

Particulars	Unit	Registered Capacity	Installed Capacity*	Actual Production
Styrene	MT	100000	-	-
Polystyrene	MT	554000	272000	165962
Speciality Polystyrene	MT	47000	25000	12887
Expandable Polystyrene	MT	150000	27700	12753
XPS	MT	5000	5000	8638 m3

Notes:

*As certified by the management and not verified by the auditors.

GENERAL INFORMATION

No. of Employees :

252 (Approximately)

Bankers :

• State Bank of India, Corporate Account Group Branch, Neville House, J N Heredia Marg, Mumbai – 400001, Maharashtra, India
• 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 Loan	30.06.2012 (Rs. In Millions)	30.06.2011 (Rs. In Millions)
Rupee term loans	848.767	924.442
Total	848.767	924.442

Rupee Term Loans amounting to Rs. 1234.767 millions from Banks are secured by a first charge by way of mortgage of the Company’s immovable properties including Plant and Machinery and by hypothecation of movable assets (except trade receivables) subject to prior charge in favour of Company’s Bankers for working capital facilities.

Working capital facilities (including letters of credit) from banks are secured by hypothecation of Company’s stocks and trade receivables and by second charge by way of mortgage of the Company’s Immovable properties including plant and machinery.

The future annual repayment obligations on secured Loans (Rupee Term Loans) principal amounts for the above long-term borrowings are as under : -

Financial Year	Rs. in millions
2012-2013	386.000
2013-2014	461.000
2014-2015	294.767
2015-2016	93.000

The future annual repayment obligations on unsecured Loan principal amounts for the above long-term borrowings are as under : -

Financial Year	Rs. in millions
2012-2013	96.207
2013-2014	54.652
2014-2015	37.438

Banking Relations :	--
Auditors :
Name :	Parikh and Shah Chartered Accountants
Address :	Mumbai, Maharashtra, India
PAN No.:	AAAFP1843M
Internal Auditors :	G.M. Kapadia and Company Chartered Accountants
Cost Auditors :	Kishore A. Bhatia Chartered Accountants
Others :	The Supreme Industries Ltd. CIN No.: L35920MH1942PLC003554 R Raheja Investments Private Limited CIN No.: U67120MH1986PTC042025
Subsidiaries :	SPL Industrial Park Limited [wound up w.e.f. 14.03.2011] SPL Industrial Support Services Limited [wound up w.e.f. 23.04.2011]

CAPITAL STRUCTURE

As on 30.06.2012

Authorized 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	Rs. 10/- each	Rs. 968.386 millions

NOTE:

In the financial year 2007-2008 in accordance with the scheme of amalgamation 863720 equity shares of Rs. 10/- each were allotted to the equity shareholders of the erstwhile SPL Polymers Ltd whose names appeared in the register of members as on August 5,2008 (record Date) without payment being received in cash. The equity shares were issued and allotted in the ratio of 1:6.

In the financial year 2008-2009, The company bought back and extinguished 1537907 equity shares which has reduced the paid-up share capital of the company from Rs. 983.765 Millions to Rs. 968.386 Millions.

The details of Shareholders holding more then 5% Shares:

(Rs. in millions)

Name of the Shareholder	No. of Shares held	%
The Supreme Industries Limited	96,838,613	29.88
R. Raheja Investments Private Limited	2,89,36,400	29.88

The reconciliation of the number of shares outstanding is set out below:

Particulars	No. of Shares
Equity Shares at the beginning of the year	96,838,613
Add :	-
Less :	-
Equity Shares at the end of the year	96,838,613

The Company has only one class of shares referred to as equity shares having a par value Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. As per the Companies Act, 1956, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in the event of liquidation of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.06.2012	30.06.2011	30.06.2010
SHAREHOLDERS FUNDS
1] Share Capital		968.386	968.386	968.386
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2114.638	1958.455	1396.684
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3083.024	2926.841	2365.070
LOAN FUNDS
1] Secured Loans		848.767	924.442	1344.116
2] Unsecured Loans		92.090	142.217	206.950
TOTAL BORROWING		940.857	1066.659	1551.066
DEFERRED TAX LIABILITIES		438.559	409.664	434.929
TOTAL		4462.440	4403.164	4351.065
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3448.565	2379.620	2563.254
Capital work-in-progress		555.251	968.841	403.740
INVESTMENT		0.000	0.284	1.999
DEFERREX TAX ASSETS		0.000	0.000	0.000
Other Non-current assets		61.071	48.999	0.000
Foreign Currency Monetary Item Translation Difference		0.000	0.000	1.265
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2634.592	2601.522	1414.529
	Sundry Debtors	2432.892	2188.956	2314.379
	Cash & Bank Balances	369.666	418.804	357.670
	Other Current Assets	34.464	32.723	0.000
	Loans & Advances	947.712	1261.743	794.840
Total Current Assets		6419.326	6503.748	4881.418
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5077.248	4288.675	539.678
	Other Current Liabilities	669.672	740.501	2669.886
	Provisions	274.853	469.152	291.047
Total Current Liabilities		6021.773	5498.328	3500.611
Net Current Assets		397.553	1005.420	1380.807
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4462.440	4403.164	4351.065

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.06.2012	30.06.2011	30.06.2010
	SALES
		Income	22492.526	19212.867	16118.441
		Other Operating revenues	234.196	224.120	0.000
		Other Income	64.876	86.692	27.093
		TOTAL (A)	22791.598	19523.679	16145.534
Less	EXPENSES
		Cost of materials consumed	13982.635	11965.802	14882.115
		Purchase of stock-in-trade	6023.927	4826.819
		Changes in inventories of finished goods and stock-in-process	207.524	(405.584)
		Employee benefits	218.010	219.187
		Other expenses	1332.569	1227.091
		TOTAL (B)	21764.665	17833.315	14882.115
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1026.933	1690.364	1263.419
Less	FINANCIAL EXPENSES (D)		319.928	202.164	163.191
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		707.005	1488.200	1100.228
Less/ Add	DEPRECIATION/ AMORTISATION (F)		229.234	203.702	198.388
	PROFIT BEFORE TAX (E-F) (G)		477.771	1284.498	901.840
Less	TAX (I)		144.025	407.469	296.061
	PROFIT AFTER TAX (G-I) (J)		333.746	877.029	605.779
Add / Less	Prior Period Adjustments		0.809	(0.663)	(1.030)
Add / Less	Provision for prior period tax		19.190	0.785	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		457.826	396.055	194.566
Less	APPROPRIATIONS
		Transfer to General Reserve	407.564	815.136	200.000
		Proposed Dividend			174.310
		Corporate Dividend Tax thereon			28.950
	BALANCE CARRIED TO THE B/S		364.009	457.826	396.055
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Exports	4353.319	4162.849	3430.382
	TOTAL EARNINGS		4353.319	4162.849	3430.382
	IMPORTS
		Raw Materials	18398.960	16124.275	8707.450
		Stores & Spares	19.621	18.383	6.787
		Capital Goods	126.962	86.445	0.000
	TOTAL IMPORTS		18545.543	16229.103	8714.237
	Earnings Per Share (Rs.)		3.24	9.06	6.24

QUARTERLY RESULTS

PARTICULARS	30.09.2012	31.12.2012
	1^st Quarter	2^nd Quarter
	Unaudited	Unaudited
Net Sales	6185.400	7969.500
Total Expenditure	5961.700	7431.100
PBIDT (Excl OI)	223.600	538.500
Other Income	08.400	12.600
Operating Profit	232.100	551.100
Interest	68.100	75.900
Exceptional Items	0.000	0.000
PBDT	164.000	475.200
Depreciation	67.500	70.100
Profit Before Tax	96.500	405.100
Tax	32.500	127.0
Provisions and contingencies	0.000	0.000
Profit After Tax	64.000	278.100
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	(7.400)
Other Adjustments	0.000	0.000
Net Profit	64.000	270.600

KEY RATIOS

PARTICULARS		30.06.2012	30.06.2011	30.06.2010
PAT / Total Income	(%)	1.46	4.49	3.75
Net Profit Margin (PBT/Sales)	(%)	2.12	6.68	5.60
Return on Total Assets (PBT/Total Assets}	(%)	4.84	14.45	12.11
Return on Investment (ROI) (PBT/Networth)		0.15	0.43	0.38
Debt Equity Ratio (Total Liability/Networth)		0.31	0.36	0.66
Current Ratio (Current Asset/Current Liability)		1.06	1.18	1.39

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----
22]	Litigations that the firm / promoter involved in	----
23]	Banking Details	Yes
24]	Banking facility details	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	Yes
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

REVIEW OF OPERATIONS

The new plants for Expandable Polystyrene (including Cup Grade EPS) at the Company’s existing site in Maharashtra commenced commercial production from February 2012. The plants are stabilized and products have been well accepted in both the domestic and export markets with the Company receiving repeat orders from its customers in overseas markets.

The increase in installed capacity of Speciality Compounds and Polymers (SPC) to 33500 TPA was implemented in January 2012 by installing 4 new lines.

Domestic Polystyrene market grew by only 1.2% during the year under review due to low growth of economy. Exports from India were substantially lower due to the unrest in the Gulf countries and continuing economic crisis in many European countries. High input prices plus weak rupee squeezed margins during the year.

Cup Grade has received good response from the export markets with repeat orders from certain customers. However, there were certain logistics issues in exports of EPS causing delays in the shipments. The same have recently been resolved.

OUTLOOK

The Company estimates domestic Polystyrene demand growth of about 8% during the year 2012-13. The major drivers for this growth are expected to be:-

i) Refrigeration Industry - which is estimated to grow at about 20% in the coming year. The industry currently at 10.5 million units is expected to grow to about 12.5 million units in the year 2012-13. Major players are planning to export sizeable capacity to the African Countries.

ii) Water Purifiers – with increased exports from India to many developing/underdeveloped countries in Gulf and African countries. Demand though currently at low ebb in India is likely to get a push since many large players are preparing to enter this market in the current year.

iii) Rigid Transparent sheets – which were till now being sourced from China and Taiwan, while 3 manufacturers have already set up their plants in India, another 3 to 4 new entrepreneurs are likely to join this sector during the current year.

iv) PS Foam Food Service ware - with food court culture getting popular in large cities and tier 2 and tier 3 towns and increased awareness about hygiene the demand from this sector will continue to grow. About 30 units have now started making foamed food service wares in India. The current annual demand from this sector is about 18000 MT which is likely to grow by 50% by this year end.

Exports of Polystyrene are likely to improve since it is noticed that political unrest in Gulf is now settling barring one or two countries. Moreover, the concerted efforts of the world leaders to push global economies back to growth path is likely to improve exports market for the Company’s products.

Expandable Polystyrene: The domestic EPS sale is expected to grow by 10% during 2012-13. The construction industry which offers lot of scope for growth continues to be a thrust area for market development for the Company. EPS application in construction in India is only 10% with 90% EPS consumption in shape application. The ratio in China is 60% for construction and 40% in shape applications whereas in Europe it is 80% in construction and 20% for shape applications. Thus EPS use for construction in India continues to be low and is a challenging opportunity for the Company.

Speciality Polymers and Compounds: Considering the growth in the domestic appliances sector and the improving business environment in the international market, business outlook for SPC is positive both for domestic and export markets.

Extruded Polystyrene Insulation Board: Rising energy costs and growing concern about the environment ugurs well for the use of XPS board in construction as an energy saving material. The income tax incentives by the Government of India for building cold chain facilities will help boost demand for XPS and EPS. A mandation for use of insulation material for energy saving in new buildings is under discussion at Central Government and also in various States. In the event it matures, demand for both EPS and XPS will get a jumpstart as both are approved insulation materials. The Company is doubling its efforts to reach out to new customers in existing markets and in hitherto unexplored new markets by adding resources as required. The Company is strengthening the distribution network to improve awareness about the advantages of this product and availability thereof.

Sale of 177120 MT of manufactured products during the year under review, are at the same level as in the previous year despite unfavourable market conditions. With the likely improvement in both domestic and export markets, product availability from the new EPS and Cup Grade EPS plants at Nagothane, the Company estimates a volume growth in its sales of manufactured products by 25% during the current year.

UNSECURED LOAN

Unsecured Loan	30.06.2012 (Rs. In Millions)	30.06.2011 (Rs. In Millions)
Fixed deposits	92.090	142.217
Total	92.090	142.217

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER/ HALF YEAR ENDED DECEMBER 31, 2012

Part I

(Rs. in Millions)

Sr. No.	Particulars	3 Months ended on 31.12.2012	Preceding 3 Months ended on 30.09.2012	Year to date figures for the current period ended on 31.12.2012
	(Refer Notes Below)	Unaudited	Unaudited	Unaudited
1	Income from Operations
	a) Net Sales/Income from Operations(Net of excise duty)	7885.572	6137.501	14023.073
	b) Other Operating Income	83.970	47.880	131.850
	Total Income from operations (net)	7969.542	6185.381	14154.923
2	Expenses
	a) Cost of raw materials consumed	5006.227	3551.260	8557.487
	b) Purchase of stock-in-trade	1986.356	2026.929	4013.285
	c) Changes in inventories of finished goods,work-in-progress and stock-in-trade	(128.164)	(26.766)	(154.930)
	d) Employee benefits expense	70.187	58.886	129.073
	e) Depreciation and amortisation expense	70.097	67.538	137.635
	f) Other Expenses	496.471	351.432	847.903
	Total Expenses	7501.174	6029.279	13530.453
3	Profit/(Loss) from Operations before other income,finance cost and Exceptional Items (1-2)	468.368	156.102	624.470
4	Other Income	12.634	8.438	21.072
5	Profit/(Loss) from ordinary activities before finance cost and exceptional Items (3+4)	481.002	164.540	645.542
6	Finance costs (Incl. Forex loss on Foreign Currency Borrowings)	75.940	68.051	143.991
7	Profit/(Loss) from ordinary activities after finance costs but before Exceptional Items (5-6)	405.062	96.489	501.551
8	Exceptional items	-	-	-
9	Profit/(Loss) from ordinary activities before Tax (7+8)	405.062	96.489	501.551
10	Tax expenses	127.011	32.466	159.477
11	Net Profit/(Loss) from Ordinary activities after Tax (9-10)	278.051	64.023	342.074
12	Extraordinary Items (net of tax expense Rs.Nil)
	Prior Period Adjustments (Net)	-	-	-
	Short/(excess) Provision of taxes for earlier years	7.411	-	7.411
13	Net Profit/(Loss) for the period (11-12)	270.640	64.023	334.663
14	Paid-up equity share capital (face value : Rs.10/-)	968.386	968.386	968.386
15	Reserves excluding revaluation reserves	-	-	-
16 (i)	Earnings Per Share (before extraordinary items) (of Rs.10/- each) (not annualised)
	Basic	2.87	0.66	3.53
	Diluted	2.87	0.66	3.53
	Cash EPS before Extraordinary Items	3.60	1.36	4.95
16 (ii)	Earnings Per Share (after extraordinary items) (of Rs.10/- each) (not annualised)
	Basic	2.79	0.66	3.46
	Diluted	2.79	0.66	3.46
	Cash EPS after Extraordinary Items	3.52	1.36	4.88

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER/ HALF YEAR ENDED DECEMBER 31, 2012

Part II

Sr. No.	Particulars	3 Months ended on 31.12.2012	Preceding 3 Months ended on 30.09.2012	Year to date figures for the current period ended on 31.12.2012
	(Refer Notes Below)	Unaudited	Unaudited	Unaudited
A	Particulars of Shareholding
1	Public Shareholding
	No. of shares	38126613	38126613	38126613
	% of shareholding	39.37%	39.37%	39.37%
B	Promoters and Promoter Group Shareholding
a	Pledged/Encumbered
	No. of shares	-	-	-
	% of shares (as a % of the total shareholding of Promoter and Promoter Group)	-	-	-
	% of shares (as a % of the total share capital of the Company)	-	-	-
b	Non-encumbered
	No. of shares	58712000	58712000	58712000
	% of shares (as a % of the total shareholding of Promoter and Promoter Group)	100%	100%	100%
	% of shares (as a % of the total share capital of the Company)	60.63%	60.63%	60.63%

Sr. No.	Particulars	3 Months ended on 31.12.2012
B	Investor Complaints
	Pending at the beginning of the Quarter	0
	Received during the quarter	21
	Disposed off during the Quarter	21
	Remaining unresolved at the end of the quarter	0

NOTES

STATEMENT OF ASSETS & LIABLITIES:

(Rs. In millions)

	Particulars	Unaudited Half Year Ended 31.12.2012
A	EQUITY AND LIABILITIES
1	SHAREHOLDERS' FUNDS
	(a) Share Capital	968.386
	(b) Reserves & Surplus	2449.298
	(c) Money received against share warrants	-
	Sub-total - Shareholders' Funds	3417.684
2	Non-current Liablities
	(a) Long-term Borrowings	698.904
	(b) Deferred Tax Liabilities (Net)	457.387
	(c) Other long-term Liabilities	10.987
	(d) Long-term Provisions	18.486
	Sub-total - Non-current Liabilities	1185.764
3	Current Liabilities
	(a) Short-term Borrowings	-
	(b) Trade Payables	6269.683
	(c) Other Current Liabilities	668.734
	(d) Short-term Provisions	108.120
	Sub-total - Current Liabilities	7046.537
	TOTAL - EQUITY AND LIABILITIES	11649.985
B	ASSETS
1	Non-currents Assets
	(a) Fixed Assets	3980.928
	(b) Long-term Loans & Advances	99.556
	(c) Other Non-current Assets	58.890
	Sub-total - Non-current Assets	4139.374
2	Current Assets
	(a) Current Investments	-
	(b) Inventories	3151.260
	(c) Trade Receivables	3099.129
	(d) Cash & Cash Equivalent	416.119
	(e) Short-term Loans & Advances	809.968
	(f) Other Current Assets	34.135
	Sub-total - Current Assets	7510.611
	TOTAL - ASSETS	11649.985

The trend of increasing Styrene Monomer (Raw Material) prices during the half year under review although resulting in better sales revenue has also put the Domestic Polystyrene (PS) market growth under pressure leading to flat PS demand as compared to the corresponding six months in the previous year.

The second phase of debottlenecking of the Polystyrene (PS) plant to increase the proportion of value added PS grades by another10,000 TPA (40,000 TPA increase achieved in the first phase in August, 2012) has for the time being been deferred.

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

Particulars	3 Months ended on 31/12/2012	Preceding 3 Months ended on 30/09/2012	Year to date figures for the current period ended on 31/12/2012
	Unaudited	Unaudited	Unaudited
(a) Net Sales/Income from Operations:
Within India	5702.074	5211.051	10913.125
Outside India	2267.468	974.330	3241.798
	7969.542	6185.381	14154.923
(b) All the Assets of the Company are within India except these Debtors	601.241	277.779	601.241

Tax expenses include current tax and deferred tax.

CONTINGENT LIABILITIES

(Rs. in millions)

Contingent liabilities not provided for in respect of :	31.03.2012
Estimated value of contracts remaining to be executed on capital accounts and not provided for	39.714
Letters of Credit opened by Bankers and outstanding at the year end.	1291.033
Bills discounted but not matured.	752.752
Counter guarantees given to Banks against Banks' guarantees to Customs/ Sales Tax.	27.871
Disputed Excise / Service Tax demand.	222.806
Disputed Sales Tax demand.	0.088
Disputed Income Tax liability (matters under appeal)	49.941
Other Claims.	7.131

FIXED ASSETS:

· Land (Freehold)

· Buildings

· Plant and Machinery

· Office Equipments

· Computers

· Air conditioners

· Vehicles

· Furniture and Fixtures

· Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 54.71
UK Pound	1	Rs. 82.79
Euro	1	Rs. 71.43

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.