MIRA INFORM REPORT

Report Date :

23.03.2013

IDENTIFICATION DETAILS

Name :	THE SUPREME INDUSTRIES LIMITED
Formerly Known As :	SUPREME INDUSTRIES LIMITED
Registered Office :	612, Raheja Chambers, Nariman Point, Mumbai – 400 021, Maharashtra
Country :	India
Financials (as on) :	30.06.2012
Date of Incorporation :	17.02.1942
Com. Reg. No.:	11-003554
Capital Investment / Paid-up Capital :	Rs.254.054 millions
CIN No.: [Company Identification No.]	L35920MH1942PLC003554
TAN No.: [Tax Deduction & Collection Account No.]	MUMT01228D
PAN No.: [Permanent Account No.]	AAACT1344F
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in production of plastic products.
No. of Employees :	Approximately 5050 (In Office – 750, In Factory – 4300)

RATING & COMMENTS

MIRA’s Rating :

A (67)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 25660000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and a reputed company of ‘The Supreme Group’ controlled and managed by Taparia’s. Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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	CRISIL
Rating	AA- (Long term rating)
Rating Explanation	High degree of safety and very low credit risk.
Date	March, 2013

Rating Agency Name	CRISIL
Rating	A1+ (Short term rating)
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	March, 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.

LOCATIONS

Registered Office :	612, Raheja Chambers, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-22851656/ 22820072/ 22851159-60
Fax No.:	91-22-22851657
E-Mail :	supremenpt@supreme.co.in investor@supreme.co.in info@supreme.co.in
Website :	www.supreme.co.in
Area :	3000 sq ft
Location :	Owned
Corporate Office :	1161 and 1162, Solitaire Corporate Park, 167, Guru Hargovindji Marg, Andheri Ghatkopar Link Road, Andheri (East), Mumbai - 400 093, Maharashtra, India
Tel. No.:	91-22-40430000/ 67710000/ 30840000
Fax No.:	91-22-40430099/ 67710099
E-Mail :	supreme@supreme.co.in
Factory :	Located at: v Derabassi (Punjab) v Durgapur (West Bengal) v Gadegaon (Maharashtra) v Guwahati (Assam) v Halol (Gujarat) v Hosur (Tamilnadu) v Jalgaon - Unit I (Maharashtra) v Jalgaon - Unit II (Maharashtra) v Kanhe (Maharashtra) v Kanpur (Uttar Pradesh) v Khopoli (Maharashtra) v Khushkheda (Rajasthan) v Malanpur 1 (Madhya Pradesh) v Malanpur 2 (Madhya Pradesh) v Noida, Gautam Buddh Nagar (Uttar Pradesh) v Puducherry (Union Territory) v Silvassa (Union Territory) v Sriperumbudur (Tamilnadu) v Urse (Maharashtra)
Branch Office :	Located at: v Ahmedabad v Bangalore v Chennai v Cochin v Hyderabad v Indore v Kanpur v Kolkata v Mumbai v New Delhi v Pune

DIRECTORS

As on 30.06.2012

Name :	Mr. B.L. Taparia
Designation :	Chairman
Date of Birth/Age :	25.11.1934
Qualification :	B.Com
Date of Appointment :	15.06.1977
Chairman / Director of other companies :	v Supreme Petrochem Limited v Supreme Capital Management Limited v Varali Investment and Trading Company Private Limited v Multilayer Films Private Limited
Name :	Mr. M.P. Taparia
Designation :	Managing Director
Date of Birth/Age :	22.10.1937
Qualification :	B.A.
Date of Appointment :	02.08.1966
Chairman / Director of other companies :	v Supreme Petrochem Limited v Supreme Capital Management Limited v Rama Newsprit and Paper Limited v SPL Industrial Park Limited v SPL Industrial Support Services Limited v Kabra Extrusion Technik Limited v Multilayer Films Private Limited v Jagatguru Investment and Trading Company Private Limited
Name :	Mr. S.J. Taparia
Designation :	Executive Director
Name :	Mr. V.K. Taparia,
Designation :	Executive Director
Name :	Mr. B.V. Bhargava
Designation :	Director
Date of Birth/Age :	16.04.1936
Qualification :	M. Com., L.L.B
Expertise in specific functional area :	Overall guidance in forming Business Policies
Date of Appointment :	25.09.1996
Chairman / Director of other companies :	v CRISIL Limited v Excel Crop Care Limited v Grasim Industries Limited v J. K. Lakshmi Cement Limited v L & T Infrastructure Finance Company Limited v Grasim Bhiwani Textiles Limited v L & T Finance Holding Limited
Name :	Mr. H.S. Parikh
Designation :	Director
Name :	Mr. N.N. Khandwala
Designation :	Director
Name :	Mr. S.R. Taparia
Designation :	Director
Date of Birth/Age :	24.10.1928
Qualification :	B.A. (Hons.), L.L.B.
Expertise in specific functional area :	Overall guidance in forming Business Policies and Corporate Social Responsibility Work
Date of Appointment :	10.09.1966
Chairman / Director of other companies :	v Permanent Magnets Limited v Venu Plantations Limited
Name :	Mr. Y.P. Trivedi
Designation :	Director
Date of Birth/Age :	06.01.1929
Qualification :	B Com L. L. B.
Date of Appointment :	30.08.2003

KEY EXECUTIVES

Name :	O.P. Roongta
Designation :	Senior Vice-President (Finance) and Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3280590	2.58
Bodies Corporate	59746755	47.03
Sub Total	63027345	49.62
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	63027345	49.62
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	11006640	8.66
Financial Institutions / Banks	117275	0.09
Foreign Institutional Investors	15613845	12.29
Any Others (Specify)	500	0.00
Foreign Financial Institutions / Banks	500	0.00
Sub Total	26738260	21.05
(2) Non-Institutions
Bodies Corporate	9601339	7.56
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	20736466	16.32
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	6134919	4.83
Any Others (Specify)	788541	0.62
Clearing Members	17177	0.01
Non Resident Indians	706314	0.56
Overseas Corporate Bodies	39370	0.03
Trusts	25680	0.02
Sub Total	37261265	29.33
Total Public shareholding (B)	63999525	50.38
Total (A)+(B)	127026870	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)	127026870	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in production of plastic products.

Products :

Product Description	Item Code No:
PVC Pipes and Fittings	39172309 39174000
Material Handling Creates	39239000
Plastic Moulded Chairs	94018000
Cross Laminated Film	39269009

v Moulded Furniture

v Material Handling Products

v Petrochemicals

v XF Films and Products (SILPAULIN)

v Performance Films

v Industrial Moulded Products

v Protective Packaging Products

v Plastic Piping System

PRODUCTION STATUS (AS ON 30.06.2011)

Particulars	Unit	Installed Capacity *	Actual Production
Injection Moulded Products	MT	102050	69284.619
Extruded Products	MT	228107	152858.733
Machinery and Moulds	Nos.	NA	28

Notes:-

(1) * As certified by the Management and accepted by the auditors being a technical matter.

(2) Production includes production achieved on labour job basis from outsiders.

GENERAL INFORMATION

No. of Employees :

Approximately 5050 (In Office – 750, In Factory – 4300)

Bankers :

v Central Bank of India, Fort, Mumbai – 400 023, Maharashtra, India

v State Bank of India

v BNP Paribas

v ICICI Bank Limited

v Bank of Baroda

v IDBI Bank Limited

v Axis Bank Limited

v Vijaya Bank

v Standard Chartered Bank

Facilities :

Secured Loans	30.06.2012 (Rs. in Millions)	30.06.2011 (Rs. in Millions)
LONG TERM BORROWINGS
From Banks
- Rupee Loans	0.000	325.000
- Foreign Currency Loans	635.540	968.400
From Others (Rupee Loans)	350.920	606.475
SHORT TERM BORROWINGS
Working Capital Loans:
From Banks (Cash Credit Accounts)	83.042	647.213
Foreign currency Loans - Buyer's Credit	510.913	424.963
Total	1580.415	2972.051

Notes:

LONG TERM BORROWINGS

Term Loans from banks and financial institutions are secured on first pari passu charge basis as under:

Immovable properties of the company, situated at certain locations of the company.

Movable properties of the company viz. plant, machineries and moulds, both present and future, situated at all the locations of the company.

SHORT TERM BORROWINGS

Working Capital Loans from Banks mentioned as above are secured against:

First pari passu charge by way of hypothecation of stocks and Book Debts, both present and future

Second / subservient charge on all movable properties of the company viz. plant, machineries and moulds, both present and future, situated at all the locations of the company.

Second / subservient charge on all immovable properties of the company, situated at certain locations of the company.

Banking Relations :	--
Auditors :
Name :	Chhogmal and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Subsidiary Company :	v The Supreme Industries Overseas FZE
Associates :	v Supreme Petrochem Limited v Supreme Capital Management Limited v Platinum Plastics and Industries Private Limited v Suraj Packaging Private Limited v Venkatesh Investment and Trading Company Private Limited v Jovial Investment and Trading Company Private Limited v Boon Investment and Trading Company Private Limited

CAPITAL STRUCTURE

As on 30.06.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.2/- each	Rs.300.000 millions
11200000	Preference Shares	Rs.10/- each	Rs.112.000 millions
33800000	Unclassified Shares	Rs.10/- each	Rs.338.000 millions
	Total		Rs.750.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
127026870	Equity Shares	Rs.2/- each	Rs.254.054 millions

The company bought back and extinguished 2211300 numbers of Equity Shares of Rs.10 each during the year 2008-09

The details of Shareholders holding more than 5% shares:

Name of the Shareholders	As at 30.06.2012
	No. of Equity Shares	% of Holding
Boon Investment and Trading Company Private Limited	20206592	15.91%
Jovial Investment and Trading Company Private Limited	19847082	15.62%
Venkatesh Investment and Trading Company Private Limited	19693081	15.50%
HDFC Mutual Fund	9589848	7.55%
Nalanda India Fund Limited	8176502	6.44%

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

	As at 30.06.2012
	Numbers	Amount (Rs. in millions)
Equity Shares at the beginning of the year	127026870	254.054
Equity Shares at the end of the year	127026870	254.054

Terms/rights attached to Equity shares:

The company has only one class of issued Equity Shares having a par value of Rs.2 per share. Each Shareholder is eligible for one vote per share held. The Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

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		254.054	254.054	254.054
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6160.559	4641.648	3527.857
4] Accumulated Losses		0.000	0.000	0.000
NETWORTH		6414.613	4895.702	3781.911
LOAN FUNDS
1] Secured Loans		1580.415	2972.051	2691.288
2] Unsecured Loans		956.809	1500.454	1182.353
TOTAL BORROWING		2537.224	4472.505	3873.641
DEFERRED TAX LIABILITIES		832.584	795.382	698.439
TOTAL		9784.421	10163.589	8353.991
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7393.796	7416.493	5626.038
Capital work-in-progress		338.096	261.706	130.836
Assets held for disposal		0.000	0.000	29.006
INVESTMENT		336.412	336.449	336.163
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3140.128	3454.050	2906.428
	Sundry Debtors	1716.794	1530.123	1314.425
	Cash & Bank Balances	138.651	139.533	182.522
	Other Current Assets	30.332	25.027	0.000
	Loans & Advances	1671.958	1509.537	977.431
Total Current Assets		6697.863	6658.270	5380.806
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2060.612	1606.656	1273.142
	Other Current Liabilities	2012.525	2187.495	1263.065
	Provisions	908.609	715.178	612.651
Total Current Liabilities		4981.746	4509.329	3148.858
Net Current Assets		1716.117	2148.941	2231.948
MISCELLNEOUS EXPENDITURE		0.000	0.000	0.000
TOTAL		9784.421	10163.589	8353.991

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.06.2012	30.06.2011	30.06.2010
	SALES
		Revenue from operations	29653.047	24689.825	20057.376
		Other Income	109.151	96.981	162.155
		TOTAL (A)	29762.198	24786.806	20219.531
Less	EXPENSES
		Cost of materials consumed	18448.649	15760.182	17162.854
		Purchases of Traded Goods	1034.112	858.211
		Changes in inventories of finished goods, work-in-progress and traded goods	131.674	(197.009)
		Employee benefits expenses	1120.520	964.288
		Other expenses	4199.089	3730.211
		TOTAL (B)	24934.044	21115.883	17162.854
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4828.154	3670.923	3056.677
Less	FINANCIAL EXPENSES (D)		547.967	425.019	330.271
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4280.187	3245.904	2726.406
Less/ Add	DEPRECIATION/ AMORTISATION (F)		724.628	618.862	529.204
	PROFIT BEFORE TAX (E-F) (G)		3555.559	2627.042	2197.202
Less	TAX (H)		1150.400	877.342	748.900
	PROFIT AFTER TAX (G-H) (I)		2405.159	1749.700	1448.302
Less	APPROPRIATIONS
		Interim Dividend on Equity Shares	190.540	165.135	127.027
		Proposed Dividend on Equity Shares	571.621	381.080	330.270
		Corporate Dividend Tax Paid	123.641	27.427	21.588
		Provision for Corporate Dividend Tax		61.821	54.854
		Transferred to General Reserve	1519.357	1114.237	914.563
	BALANCE CARRIED TO THE B/S		0.000	0.000	0.000
	EARNINGS IN FOREIGN CURRENCY
		Export (On FOB Basis)	680.284	617.125	587.403
	TOTAL EARNINGS		680.284	617.125	587.403
	IMPORTS
		Raw Materials & Components	4930.099	5135.708	5433.978
		Stores & Spares	20.594	4.951	4.419
		Capital Goods	460.403	639.779	242.634
	TOTAL IMPORTS		5411.096	5780.438	5681.031
	Earnings Per Share (Rs.)		18.93	13.77	57.01

QUARTERLY RESULTS

PARTICULARS	30.09.2012 (1^st Quarter)	31.12.2012 (2^nd Quarter)
Net Sales	6176.300	8148.200
Total Expenditure	5327.200	6956.200
PBIDT (Excl OI)	849.200	1192.000
Other Income	0.500	40.500
Operating Profit	849.700	1232.500
Interest	114.600	138.300
Exceptional Items	0.000	0.000
PBDT	735.100	1094.200
Depreciation	185.800	190.000
Profit Before Tax	549.400	904.200
Tax	177.500	282.500
Provisions and contingencies	0.000	0.000
Profit After Tax	371.900	621.700
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	371.900	621.700

KEY RATIOS

PARTICULARS		30.06.2012	30.06.2011	30.06.2010
PAT / Total Income	(%)	8.08	7.06	7.16
Net Profit Margin (PBT/Sales)	(%)	11.99	10.64	10.95
Return on Total Assets (PBT/Total Assets}	(%)	25.23	18.66	19.96
Return on Investment (ROI) (PBT/Networth)		0.55	0.54	0.58
Debt Equity Ratio (Total Debt/Networth)		0.40	0.91	1.02
Current Ratio (Current Asset/Current Liability)		1.34	1.48	1.71

LOCAL AGENCY FURTHER INFORMATION

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

Unsecured Loans	30.06.2012 (Rs. in Millions)	30.06.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Fixed Deposits	37.769	152.560
Deferred payment liabilities (Under Sales Tax Deferral Scheme)	23.627	25.959
Long term maturities of finance lease obligations	0.904	0.000
SHORT TERM BORROWINGS
Foreign Currency Loans - Buyer's Credit	894.509	1321.935
Total	956.809	1500.454

TRADE REFERENCES:

· Dove Chemicals Limited

· Maruti Udyog Limited

SUPREME PETROCHEM LIMITED (SPL):

The Board of Directors of Supreme Petrochem Limited (SPL) – promoted jointly by the Company and the R Raheja Group has recommended a dividend of Rs.1.40 per equity share of Rs.10 each for the year ended June 30, 2012. Net revenues and net profit for the year were Rs.2276.700 millions and Rs.313.700 millions respectively.

The new plants for Expandable Polystyrene (including Cup Grade EPS) commenced commercial production from February, 2012. SPL’s total installed capacity for EPS thus stands at 72,100 TPA considering its plant sites in Maharashtra and Tamilnadu and is the largest in the country.

The debottlenecking of the existing Polystyrene lines to increase the production capacity of premium value added grades by 50000 TPA within the overall capacity of 272000 TPA is progressing as per schedule and is likely to be completed by the quarter ended December 31, 2012.

The environment clearance for the 4000 KVA Captive Gas Engine Power plant has been received. Consent to operate is awaited from Maharashtra Pollution Control Board. The plant is expected to start by September 2012.

SUBSIDIARY COMPANY:

The Supreme Industries Overseas (FZE), a wholly owned subsidiary of the Company incorporated in SAIF Zone, UAE is continue to support company’s plans to increases exports in Gulf and Middle East countries. In spite of negative sentiments and slowdown in construction activity globally, it has managed to secure growth during the year, though marginally, in exports of piping system. It has presence in more than 17 countries in the region and customers are being well serviced by the company. This company has made a loss of AED 29,579 during the year.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW:

The World economy is moving into a slower growth phase principally due to the problems faced by the European economy and bleak prospects of US economy. This has also slowed down Chinese and Indian Economy. In this situation, it was expected that the commodity prices may remain at a lower level for a longer period. Commodity prices came down to some extent. But, recently, Company is seeing reverse trend especially in the price of Crude Oil and commodity plastics.

From the low level reached in the market, fluctuations in the prices of Commodity plastics was between USD 50 to 100 per ton in the last 2-3 weeks. Indian economy is further adversely affected due to non-decisiveness by Centre and various State Governments on various pending issues which may lead the GDP growth to a lower level of around 6.5% during the year 2012-13.

INDUSTRY STRUCTURE AND DEVELOPMENT:

The consumption of Plastics in the Country increased by only 6% in the year 2011-12 which shows significant slowdown in the consumption of Plastics in their country. It rarely happened that the growth of consumption of Plastics is lower than the GDP growth. Normally, it used to be around 1.5 plus times of GDP growth in their country.

This low growth may be due to high cost of raw material exacerbated by Rupee depreciation which might have led to increased use of reprocessed plastics material. Lower consumption of Plastics may also be due to increase in imports of plastics products from surrounding countries viz China. The Company suspects that a large volume of plastics products are imported by under invoicing the import costs.

In this situation, Company is encouraged by the building up of local plants for the manufacturing of various polymers in India. H P/ Mittal at Bhatinda is expected to start their plant to produce 500,000 tons of Polymers. The plant is expected to go into production during this year. Dahej Plant, at Gujarat, of ONGC may also go into production by 2013-14. Reliance has also taken effective steps to put up a large cracker complex at Jamnagar, Gujarat. Government funded Petrochemical plant at Assam is also taking shape.

Gas prices have become quite low in USA. For the first time after more than a decade, several new crackers establishment have been announced in USA for putting green field Polymer manufacturing facilities in next 5/6 years. Thus Company feels quite comfortable that it may be able to procure it’s raw material requirements adequately from local and imported sources.

Non-implementation of Goods and Service Tax (GST) could not integrate the country’s economy fully. The same has been inordinately delayed. It is still unclear whether GST can be in place even in 2013-14. However, the Central and State Governments continue to allocate larger sums of monies to boost Agricultural productivity and to improve the facilities for potable water supply and sanitation.

These moves of the Government’s have given additional opportunity to the Company to boost its business in Agriculture, potable water supply and sanitation.

Company is coming out with cost efficient alternatives to cater to these segments compared to the products made from conventional materials.

PRODUCT GROUPS

The product groups of the Company have been recast as follows:

Group	Products
Plastics Piping System	uPVC Pipes, Injection Moulded fittings and handmade fittings, Polypropylene Random Co-polymer pipes and fittings, HDPE Pipe Systems, CPVC Pipes Systems, LLDPE Tube and Inspection Chambers and manholes.
Consumer products	Furniture
Industrial Products	Industrial products, Material handling System and Pallets
Packaging Products	Flexible packaging film products, Protective Packaging Products, Cross Laminated Film products
Composite Products	LPG Gas Cylinders, Composite Pipes

The net turnover (including other income) of the Company was Rs.29762.200 millions (including Rs.880.300 millions by way of trading in other related products and Rs.691.600 millions from sale of premises) as against Rs.24786.800 millions (including Rs.629.400 millions by way of trading in other related products and Rs.397.500 millions from sales of premises) of the previous year.

The Company has processed (excluding discontinued business of PP Mats) 245700 tons of Polymers as against 223751 tons of Polymers in the previous year, reflecting a growth of 9.81% in Polymer consumption.

The Company exported (excluding discontinued business of PP Mats) goods worth US$ 13.49 million as against US$ 11.21 million in the previous year registering a growth of 20.34%.

Profit before interest, depreciation and exceptional items and taxes during the year have gone up by 31.52% from Rs.3670.900 millions to Rs.4828.200 millions during the year.

COMPANY’S STRENGTH AND GROWTH DRIVERS

MANUFACTURING SITES

The Company had a plant to manufacture rigid PVC film at Malanpur. Its operations were discontinued long back. Land and Building were mostly lying idle. A small area was being used for Poly Foam Products.

With increase in demand of Plastics pipe products, the company has decided to utilize this facility to put up a large facility to manufacture Plastics Pipe System. Accordingly, Protective Packaging Products manufacturing which were produced there in small way were shifted to another unit and same land and building are being used to put up plastics pipe system plant at an investment of around Rs.1500.000 millions over a period of two years. Part of the capacity may be operational by October 2012.

Apart from activating this unit in a big way, the Company has plans to commence production of Composite Cylinders at Halol, Protective Packaging Products at Hosur and also the start up of production of Cross Laminated film products at another site at Halol. These plants are scheduled to go into production- one after another-starting from September 2012 onwards.

Beginning January 2013, the Company will have 22 plants manufacturing varieties of products spread across the country to meet the requirements of its customers of varied quality plastics products in cost effective manner.

The Company is quite encouraged by diversifying to production of Composite Products. The Company is looking into additional product segments which may add into this composite product portfolio, apart from making LPG Cylinders. The Company’s plans for taking up additional products in this product group may crystalise in the current year.

The Company continues to remain focused to manufacture plastics products. The product portfolio is selected in such a manner that neither it has to compete against imported plastics products nor it can be affected by the products made by the un-organized sector in the country in an adverse manner.

DISTRIBUTION NETWORK

The Company considers its distributors as a valuable asset. They are spread throughout the country. With the strong retail net work serviced by the distributors, it enables the Company to distribute its products in a cost effective manner to its customers. The Company’s products command respect in the segments they operate due to its superior quality, range and service, and continuous introduction of newer products in that product group.

GROWTH DRIVERS

The Company’s focus remains to supply quality functional plastics products along with innovation in each product segment where the Company is operating. The growth impetus of each product is fully taken care of by the Company to invest adequate sums of monies year after year. During the financial year 2012-13, the Company intends to commit fresh investment of around Rs.2000.000 millions to augment the products produced at existing units and to initiate action to support green field projects – i.e. Two units at Halol, Gujrat and one unit at Hosur in Tamil Nadu along with large investments at its existing site at Malanpur in M.P.

The Company may be investing monies out of this investment plan to add new products in composite segment in the current year. The Company is also investing large sums of money for automation of its production process at different plants to improve the production efficiency.

The Company is seeing increasing potential to participate in export markets. The company is taking steps to boost the export of plastics pipe system, Cross Laminated film products and Performance Packaging film, during the current year. Company may add other products also in this year to boost export quantum growth in the current year.

OPERATIONAL PERFORMANCE

PLASTICS PIPING SYSTEMS

The growth of PVC Pipes and Fittings business is becoming more dependent on availability of adequate quantities of raw material.

There has been no addition to the capacity of local PVC resin producers. It clearly indicates that growth in this business may depend largely on the Imports. The quantum of Imports may soon reach the level of local PVC resin production. Local production is currently around 1.2 million tons annually.

The Company is managing imports of PVC resin at affordable prices. The Company’s growth has been around 17% in volume terms.

There was a lull in the infrastructure sector. The farming community was quite active because of adequate water availability, good yield and support from Government side enhancing minimum support prices for various agricultural products. The demand from Housing segments was also encouraging.

The Company is encouraged by demand pull from Housing and Agricultural sector. The Company has, therefore, taken a decision to expand the capacity for both PVC Pipes and Fittings and CPVC Pipe System in the current year. The Company will have fresh installed capacity of 50,000 MT p.a. available from its new location of Malanpur in Madhya Pradesh in two phases. The new capacity of first phase will become operational from October’2012 in part and full capacity of first phase will be in place by March’2013. This capacity enhancement will enable the Company to meet the growing demand of various sectors. Moreover the Malanpur location will enable the Company to put more focus on the unrepresented areas of MP, Rajasthan and other North Indian states in a cost efficient manner.

The Knowledge Centre activities at Gadegaon were largely appreciated by all the visitors from various architects, consultants, farmers and plumbing fraternity. The Company had more than 5000 visitors at Knowledge Centre during the year. The Company expects more number of visitors during the coming years.

The Company has entered into the Memorandum of Understanding with IAPMO (International Association of Plumbing and Mechanical Officials). Through IAPMO the Company’s people will have more knowledge and exposure to “Uniform Plumbing Codes” adopted all over the world. Similarly, they will gain knowledge about recent developments in various plumbing sectors including new products installation techniques and training. This knowledge will be subsequently utilized for training all the plumbers and visitors coming to Knowledge Centre. Through training at Knowledge Centre, the Company would like to give a message – “Better Plumbing for Better Life”.

Most of the Company’s channel partners, dealers and sub-dealers have also visited Knowledge Centre. They all acknowledged that this has provided them enough knowledge and education about Company’s various products, applications and they are benefited in increasing their volume of business in Plastic Piping System.

The Company is also benefited indirectly by attracting potential International from building material segment to take the distributorship of Company’s Plastic Piping Division.

The Government of India has put a renewed focus on Sanitation Sector across all the Urban and Rural areas. The Company expects that its products may move well in the Sanitation Sectors in coming years.

The Inspection Chambers and Eco-Drain Pipes have gained acceptance in the market. As a result the business of NU-Drain System may increase multifold in near future.

Manhole with 1.2 mtr dia meter is getting ready. The Company may launch this product immediately after the monsoon is over. This Manhole may create increased demand for Pipes and Fittings in various applications like storm water projects and sewage transportation projects. Once it is established and accepted by Government and Semi Government bodies including Municipal Corporation, this business may see good growth potential. The Company expects to obtain all approvals and technical clearances during the following months for this system.

During the year, the Company sold 137.60 million meters of Pipes and sold 168.37 million pcs of Fittings registering a growth of 22.82%.

The Company’s product portfolio increased to 5577 numbers against earlier 5311 numbers, thus adding 266 new products during the year.

The Company’s Value Added Product sale reached 24.24% to total sale against 21.87% in this system of the previous year. Company’s focus continues to remain to increase the percentage of Value Added Products in this system.

To meet the growing demand of Hi-Tech SWR System for use in Hi-rise Apartments, the Company has planned to introduce the new series of Hi-Tech SWR System around November/December’2012.

On demand of its channel partners, the Company has planned to extend the range of its plumbing products to include varieties of Bath Room Fittings. These Fittings will be made from engineering plastics. They will supplement the CP Fittings in terms of aesthetics, performance and user friendly product design.

The Company expects to launch these Fittings by January’ 2013. This will enable Company’s channel partners to improve on their product portfolio and business volume.

Due to slowing down of economy in U K and Australian market, the Company’s exports in this segment could not reach the anticipated growth target. It registered a meager growth of 3% during the year by value.

The Kanpur Unit operations are running satisfactorily. The Company’s plan to expand it’s capacity to 20000 T. P.A. may be in place by January /March 2013. The Company had plans to expand the capacity in a big way at that site. The same has been put on hold due to erratic power supply.

The Company’s CPVC product business grew nearly 60% on year on year basis in value terms. The Company expects to achieve the similar growth during the current year. The Company has taken adequate steps to expand the capacity of CPVC production to meet the growing demand of CPVC System. The Company is able to source adequate quantity of raw material required to meet the expected growth in demand.

The PPRC Plastics System has grown only 8% by value. The Company has plans to enter new areas of application to improve the sale of PPRC products in International markets. The Company anticipates a decent growth in this segment during coming years.

The Company has an effective annual production capacity based on product mix of around 5000 T of HDPE Pipes. The Company sold last year 2679 T of HDPE Pipes. Based on quality feedback from its various customers the Company expects a better utilization of the capacity from Trade and Industrial projects in the current year.

CONSUMER PRODUCTS

FURNITURE

The Company has its furniture manufacturing activity at 5 locations viz: Pondicherry (UT), Durgapur (West Bengal), Lalru (Punjab), Gadegaon (Maharashtra) and Guwahati (Assam) to cater effectively to different geography of country.

Turnover of Furniture Business has gone up from Rs.2790.000 millions to Rs.2920.000 millions, thereby registering a growth of 5% in value terms. The Company’s strategy of participating selectively in commodity furniture products pulled down the overall business volume by 10% as some of the furniture products were contributing negative margin.

The company has re-casted its investment plan to increase the range of value added products in the current year itself. Thus, it will broaden the range of value added furniture products. This will further build the superior brand image of Company’s products for its aesthetics and durability.

The launch of Designer Chair, DIVA is well received by the market for its uniqueness of having inbuilt metal legs for stability, gas molded plastic seat for strength and transparent back for aesthetic beauty. The launches of Gas Moulded Chairs for the first time in the country have been very well appreciated by the channel partners and consumers. There is still no chair, as of now in India, which can compare with above chairs in quality durability and aesthetics.

Company now plans to introduce few more models in painted upholstered Plastics Chair to enhance the volume further of this range. A new Paint shop is being planned at Durgapur for catering to East market with newer Painted and Upholstered Plastic Chairs models.

The Company had good success with its strategic initiative that has paved the way for its future business. The Company’s milestone of 1/3^rd business with Premium Products sales was further excelled by more than 5% in the previous year. It has reached to a level of 38% of overall sales. The company intends to further increase share of Premium Products sales by another 8% plus in value during next twelve months which will help the business to grow profitably.

There has been a delay in getting the plot registered in the Company’s name at Andhra Pradesh even after allotment and making full payment to APIIC at Ongole Growth centre. This was due to their internal technical reasons with court. The Company has, therefore, abandoned the Andhra Project for Furniture manufacturing as of now.

The Company has 253 Exclusive Franchise Show Rooms on All-India basis displaying entire range of Supreme Furniture to the customer in a nice ambience.

The company’s furniture products enjoy good acceptance in the market for its quality, design, color and range. “Supreme” brand is perceived as a premium brand in the country in plastics Furniture and enjoys a reputation of bringing many products and concepts first time in the country.

MATS

As reported last year, the mat division was closed down by November 2011. Most of the equipments have been sold. Only machines which were to be scrapped are left out. They may be sold by August 2012. There have been a few enquiries for the Company’s land and building also which Company shall evaluate and decide appropriately in due course of time.

INDUSTRIAL PRODUCTS

INDUSTRIAL COMPONENTS

On the backdrop of encouraging business trend observed during second half of FY 10 -11 and highest ever Capex executed during the same year, the Division planned ambitious growth of 27% for 2011-12. However, due to general slowdown in the demand of high ticket products and delays in start up of customers’ new projects, division achieved overall 11% growth in its revenue.

There has been degrowth of 7% in value in consumer durable sector. This was mainly due to a major reduction in off take from one their important customer. However, Company could grow healthy 26% in value in Auto sector.

Layout improvements in old units at Noida and Talegaon have significantly improved working environment which has started yielding results in terms of Quality, Safety and productivity, The development of interior parts including Cockpit Assembly, undertaken at Talegaon plant, during last year for one of the prestigious commercial vehicle project of Tata Motors is nearing completion and supplies are expected to start during later part of this year after various ongoing vehicle testing stages by the customer. Development of parts for recently launched Two Wheeler Vespa’ by Piaggio, completed and supplies started. Both these projects are expected to improve revenue of Talegaon plant significantly in future.

A focused drive undertaken at Noida plant to widen customer and product portfolio to counter vulnerability of dependence on limited customer/product base, started yielding results. The plant has bagged order from two major Japanese companies in Consumer Durable Sector and few other customers in the same and Auto sector. Company expects good growth during the year because of these initiatives.

Khushkhera plant capacity augmentation resulted in to doubling of plant capacity. During the year, the plant had 46% revenue growth. Company expects robust growth during the current year also. Several actions have been initiated to consolidate the operations for future growth sustenance at that Unit.

New facility at Chennai which was operational during FY 10-11, is getting stabilized in terms of production and operations. Although, initially plant was catering only to Consumer Durable sector for one of the company’s major customers, Company has developed now few customers in Auto Sector, to smoothen demand volatility.

Company has been selected for plastic parts required for Washing Machines being launched in India by one of the large MNCs in Consumer Durable Sector and development activity for the same will start soon. Supplies for the same are expected to start from FY 13 -14.

All these initiatives should generate significant growth at Chennai plant during this year and in future years. Due to severe power shortage in Tamilnadu during significant period of the year, there was adverse effect on smooth running of operations. However, Company ensured trouble free supplies to customers, even running the plant by using expensive captive power. Although the power situation has improved to some extent, it is still far from satisfactory.

At Puducherry plant, all plastic parts for the next model of Radiance, i.e. „All plastic body Washing Machine’, were fully established as per the requirement of productivity, Quality and Delivery norms specified by the customer. Company expects that this should result in to continuous and sustained growth at Puducherry plant. This plant, which also caters to company’s other Divisions, i.e. Furniture and Material Handling, bagged „TPM Excellence Award‟ from Japan Institute of Plant Maintenance (JIPM) Japan, during the year.

Durgapur and Gadegaon facilities which were expanded last year to meet the potential demand from one of the major customers from Durable Sector remained largely underutilized due to technical snag in the product at customer end. This resulted in sharp drop with respect to projected demand. Company has taken up initiative to utilize the capacity by launching new product range which will start during the current year. This will also generate significant revenue in future.

The new machines and equipments which are being added are with energy efficient technologies and will ensure better Quality, Productivity, Safety and lower cost. To negate the impact of lowering margins due to various cost increases and to remain competitive, Company makes continuous efforts to remain a lean manufacturer. Company is also in discussion with its various customers for price corrections for the old continuing businesses.

Company is continuously putting efforts to establish and improve Energy Management System at all the locations. This initiative of the company, apart from cost reduction, will support Environment and Green initiatives.

As a part of up-gradation and implementation of Quality Management Systems, all plants are re-certified for ISO/TS 16949, EMS and OHSAS for latest up-graded versions.

Puducherry plant was certified by latest Integrated Management System (IMS) during the year and currently Chennai plant is working on the same. There has been continuous thrust on Safety, Health, Hygiene and Environment.

Overall rating of the company by all its customers is good. The Company is considered a highly dependable and valuable supplier. Company receives various Awards and Recognitions from time to time from its customers for its support in Quality, Cost, Delivery and new product development etc.

The journey towards excellence is being cultivated as a culture and will be continuous. Efforts are being accelerated to increase customer and product base, bring in new technology, automation, effective cost management to ensure sustained growth with profits.

MATERIAL HANDLING PRODUCTS

The Company achieved a value growth of approx. 17% and a volume growth of approximate 10% during last year. The division is recording continuous growth in the business. The Company continues to service its client with least lead-time at economical cost by manufacturing at six own manufacturing sites spread across the country.

Anticipating the customer’s future needs, the Company has now moved to giving heavy duty Industrial crates by developing several models with superior product design to cater to quality conscious customers in automobile, appliance and logistics industry. Supplies of these products have started. The Company’s products for a heavy-duty requirement in Fishery Industry have also been well accepted. The Company expects to have good growth in this segment.

The Company’s business to soft drink customers fared well. Business prospects for this year are also promising, as per indication from the customers.

Company has fabrication facilities at locations other then manufacturing, as well, to develop tailor made crates to meet specific requirement of applications at customers end. This is helping in a big way to replace conventional material usage while handling products at customers end. These are value added products for the Company. The company has upgraded its fabrication facilities with automation and usage of newer materials.

The Roto Moulding facility of Company at Gadegaon is functioning well. It has also been strengthened with PU facility to meet specific heavy-duty requirement with supply of PU filled Roto Moulded items. The Company has a range of Roto Moulded Pallets.

The Company expects a good growth for its Pallet business during next year. Company also plans to launch very heavy duty Plastic Pallets without Steel reinforcement in the Indian market for the first time. The Company continues to be a leader in the Injection Moulded Pallet business in India. It has further enhanced product portfolio with unique application focused products. The Company‟s enhanced Injection Moulding Pallet making capacity at Gadegaon is functioning well. The plans have been drawn for even better utilization of capacity. The Company has been successful in replacing wooden Pallet for Grain and Seeds Storage application. The necessary statutory approvals from BIS of Plastic Pallet specifications for Grain Storage application are through. It should result into geometric business growth for this application.

PACKAGING PRODUCTS

PACKAGING FILMS

The Performance films business had a tough year. Growth was lower at 6.8% v/s expected growth of 20%.

The government’s policy to buy five layer films for distribution of oil continued to be sluggish against an expected revival. Also, all competitors expanded capacity. At the same time, several new players entered this field, rendering the business to be extremely competitive, capacity far outstripping demand. However, with an overall growth in business this year, business for the Company may be better in this year.

Exports were 672 tons against 571 tons last year. As per the projections received from the Company’s existing customers, the Company expects exports to grow to 800 tons this year. The Company is giving special drive to boost export of this product. The Company expects the business to grow around 15% by volume this year.

PROTECTIVE PACKAGING PRODUCTS

The year was challenging for the division, to retain the growth rate. The growth rate for the first three Quarters of the year was 16% in Value and 9% Volume against same period last year. This has improved, in the last Quarter with a Value growth of 23% and Volume growth of 19%. The overall year on year growth was 17% in Value and 13% in Volume against last year. The division is expecting 15% volume growth of the coming year.

Urse plant has been fully stabilized and some of the products lines are running close to full capacity.

The second unit at Hosur may start by Sept 2012. In the first phase the plant will be started with cross link block foam and directly extruded cross link PE foam. The existing production capacity of cross link block foam will be enhanced from 1640 MTPA to 2400 MTPA during the year. The division is planning to enter into manufacturing of Gaskets, especially for the Automobile sector. This new conversion facility will start in Hosur unit – II, in the second half of the year.

PACKAGING APPLICATION

Non-Cross Linked Foam capacity was enhanced from 9400 MTPA to 10300 MTPA during last year and is expected to increase 11900 MTPA during the current year. While competition in this product category has increased, the division expects to continue growing in the segment. The product enjoys a good brand image in the market.

New products and new applications are being developed in the cross linked foam product category. This will ensure higher utilization of all cross linked product manufacturing facilities.

CONSTRUCTION SECTOR

Growth achieved 33% in value and 39% in volume against last year. Though the construction industry is still struggling, the Company expects to have reasonable growth in the coming year as well. A large number of architects are now approving the Company’s products for various upcoming Projects. This is a result of constant efforts by the marketing team.

The division had problems in disposing off the cross-linked PE foam wastages. Several initiatives have been taken to reduce the selling of these wastages. The division is that a new application has been developed using one type of product wastage which has found good acceptance in the market.

INSULATION APPLICATION

The growth recorded during last year was 39% in value and 35% in volume. Considering the acceptability of Company’s extruded cross-linked PE foam in the insulation sector by several consultants and growing demand, a new manufacturing facility is being set up at Hosur (Unit – II). The existing capacity of 1100 MTPA will be enhanced to 1650 MTPA during the year. This will be the 3^rd Plant for this product category and will reduce the cost and logistic challenges that are being faced to service the South Indian market from the existing plants located at Malanpur and Urse. “INSUreflector”, the other range of insulation product, is also well accepted by the market and consultants. The division expects to launch several new variants of INSUreflector in the current year. This product has established its advantage in the industrial roofing shed under-deck insulation against other products being offered by many other companies.

The NBR PVC hose launched last year has not successfully picked up as the prices for imported products is quite low. However, efforts are being taken by the division to reduce density of its products, thereby making it cost competitive. Besides efforts are on to introduce class “O” BS 476, part 6 and 7 category products. This is specified for many projects. Business for the same is expected to start from the second quarter of the current financial year. Both these initiatives should set this business in the right track.

TECHNOLOGICAL DEVELOPMENT

To retain the business growth, especially for the standard product, extensive Research and Development work has been carried out during the year to reduce the compounding cost and to improve the productivity and quality.

For the first time in India, 16 Kg/m3 density Foam has been developed with all quality features similar to 20 Kg/m3 density Foam, at Company’s Malanpur Plant. The new standard has been achieved by modifying the equipment design and by upgrading the process technology. The new range of products are developed with ROHS and REACH compliance to cater the market demand of hazard free products. Two of the Company’s Insulation products are now enlisted in IGBC (Indian Green Building Council) website

CROSS LAMINATED FILM

Business for Cross Laminated Film and Products grew by 13% in volume terms and by 24% in value terms. The company sold 16999 tons of Products against 15050 tons during the previous year. Exports grew by 30% to 1836 tons from 1412 tons. There was strong demand for company’s products in domestic and international markets during the year which outpaced the product availability.

The company foresees a strong demand for its products in local market during the current year as well. Despite anaemic growth of world economy the company has done well on the export front. The company is eyeing to scale a new peak of 3300 tons in exports during the current year by entering new markets of Africa, U.S.A. and Myanmar supported by strong demand in the existing European and Asian markets. The company expects to sell the entire available capacity of around 24000 tons in the Current Year from the existing and new unit.

The spurt in demand both in local as well as international markets has prompted company to advance its expansion plans. The company has already purchased land at Halol in Gujarat for putting up new unit. The construction of production unit is in full swing at that location. The company plans to more than double the existing capacity in two phases at the new site. In the first phase, the annual capacity will be expanded by 12000 tons for which orders have already been placed. The first phase will be fully operational by April 2013. In the second phase the capacity will be expanded by another 8000 tons which shall be in place by April 2014.

Besides, the capacity at the existing two units which is of 18000 tons will be enhanced to 19000 tons by debottlenecking. The new fabrication site at Puducherry has been put into operation which together with the induction of new contractors at new unit in Halol will enhance the fabrication capacity commensurate with the expanded film production capacity. However the impetus will be on automation of some of the activities involved in fabrication to overcome the constraint of labour availability. The company’s collaborator has already taken steps in these directions.

The company has entered into an agreement with it’s collaborator whereby the exclusive rights to manufacture and sell XF products in entire South Asia and whole of Africa have been extended to include entire East Asia(except Mongolia).

The exclusive rights to manufacture and sell products (developed from New Technologies which includes Cross Line Bonded Film and Cross Plastic Film) in India and SAARC countries have been extended to include entire South Asia and East Asia (except Japan and Mongolia). The collaborator has also granted the company a first right of refusal for acquiring similar exclusive rights for each country of Africa.

The Company sold 244 tons of Cross Line Bonded Film products, a next generation XF film during the year. The Company has installed balancing equipments for manufacturing this film on one other machine. With the increase in production the company expects to sell around 1000 tons of this film product in the current year.

Two of the licensees of the company’s collaborator, one in U.S.A. and another in Europe may start commercial production of Cross Plastic Film during current year. Based on the commercial success of the product the company may consider putting up similar facility at new unit in Halol.

CONSTRUCTION BUSINESS

Due to awareness of climate change and increasing focus on other pressing environmental issues, the concept of Green Building is steadily becoming the norms and standard practice in real estate sector across the country. The developers are gradually realizing the advantages of Green Building in India and thus it is expected good growth in the demand of Green Building. A number of large Corporate Houses are making it sure that their office buildings or factories are constructed with sustainability in mind, as such the future of Green Building concept is looking bright at the moment.

In this backdrop, the Company is delighted to inform that the Corporate Green Park “Supreme Chambers” has been awarded Platinum Certificate under “LEED India Core and Shell Rating System” by Indian Green Building Council (IGBC) and it is second such building in Mumbai to get this prestigious “LEED India Core and Shell Platinum Rating”.

The prestigious magazine “Construction Week” in its edition of June, 2012, has handpicked 10 of India’s very best Commercial Green Buildings, out of Top 200 Green Buildings spread across the cities of India to illustrate the Country’s green drive in which “Supreme Chambers” ranked 2^nd to get such esteemed status. The Corporate Green Park, which has been built with passion by the Company is fully ready for occupation. The Company has received Occupation Certificate from Municipal Corporation of Greater Mumbai. Adequate supply of water, electricity and other requisite utilities have already been commissioned. Two occupants have already started functioning business activities from their respective premises from “Supreme Chambers” and the other two occupants shall also commence their business activities shortly from their respective premises at the said location. Due to Supreme Chambers’ strategic location, proximity to domestic and international airports, easy connectivity to (i) Railway Station (ii) Western Express Highway and (iii) Upcoming Metro Junction, it remains the prime choice of destination for perfect business centre.

It was the endeavor of the Company to make eco-friendly, green featured corporate park that would promote the Company’s image of manufacturing green products and which projects it as a Brand Ambassador.

The Company has incurred Rs.1405.700 millions towards Cost of Construction as on 30^th June, 2012, which together with the estimated Outstanding Expenses/ Liabilities may reach to Rs.1550.000 millions. The Company has realized Rs.1270.700 millions net from the sale of six of its Office Blocks comprising about 81,682 sq. ft., out of Total Saleable Area of around 2.79 Lacs sq. ft. which includes realization of Rs.691.600 millions from sale of 41,678 sq.ft during the year.

Real Estate Market is reeling under the burden of high interest rate, inflation and slower economic growth domestically and weak economy globally and therefore the demand for real estate property particularly commercial premises has remained sluggish in all prime business centers in India for quite some time. This sentiment may remain subdued for some more time.

Under the circumstances, the Company has adopted wait and watch policy and is waiting for the appropriate time for improvement in the sentiments in the real estate sector which shall lead to the growth in demand for commercial property market. The Company is hopeful that with slowing down of new construction of commercial premises in Greater Mumbai, the Company may have good demand for its ready to use premises, with occupation certificate in place, in near future.

NEW INITIATIVES:

The company has chosen to foray into Composites having excellent growth potential. Consumption of Fiber Glass Products in India is around 1.2 lacs tons per annum against which consumption in China is over one million tons.

With excellent properties of Fibre Glass and varied application opportunities available, It is expected that there will be healthy growth in composite products business.

LPG CYLINDER:

It is a known fact that steel cylinders are in use at most of the household for LPG. Presently over 18 Crores steel cylinders re in use in their country and three oil marketing companies buy over 1 core cylinders per year.

Due to availability of huge market, the Company has decided to venture into composite LPG cylinder for household use. Although, these cylinders are expensive compared to steel cylinders but they are safe, as in case of accident. They do not explode like steel cylinders. This will save precious human lives.

The cylinder being translucent, the level of gas can also be seen which will be added advantage to the consumers. Empty cylinders will weigh half of the weight of present steel cylinders so they are easy to carry and also aesthetically much better looking.

In order to supply very safe cylinders, Company has ordered a very modern plant with complete automation so that quality of cylinders is fully assured.

Company has committed to invest Rs.700.000 millions for production capacity of 5 lac cylinders per annum. Equipments are expected to reach the plant site at Halol (Gujarat) by first week of December’ 2012. Trial runs are likely to commence from first week of Jan‟2013 and Company hopes to be in production before end of March’ 2013.

Company is happy to inform that cylinders made on their equipment has passed all the requisite tests based on EN and ISO Standards. Company expects to get the formal acceptance certificate from testing authorities by September’ 2012.

COMPOSITE PIPES:

NBL Corporation of Japan has the patented technology and process to manufacture High Pressure Composite Pipes where burst pressure is 100 Mpa. Company has entered in technical tie up with its collaborator M/s. NBL Corporation of Japan on exclusivity basis for India. These composite pipes are very suitable for down hole and casing pipes for oil and gas industry. These are much lighter in weight compared to present special steel pipes in use. They are anti-corrosive which is very much desirable for these applications. Their collaborator has already secured trial order for 6 kms from ONGC for down hole tubing. Order is likely to be executed by Company‟s collaborator in August / September, 2012.

Company has taken effective steps to produce these pipes and ordered for first small size plant to produce 15,000 pipes per annum. Presently the plant is under manufacturing at Japan. Investment in the initial capacity of this plant would be about Rs.100.000 millions and together with building and other infrastructure, total cost of the project is likely to be around Rs.160.000 millions. This plant will also be in same campus of cylinder plant at Halol .As per present schedule, ordered equipment are likely to arrive at plant site by October, 2012 and company expects to start commercial production from November, 2012. Company is also looking for other suitable opportunities in composite sector.

OVERALL GROWTH PROSPECTS:

The Indian economy with its demographic advantage, entrepreneurial drive and innovative attitude is destined to cross USD 5 Trillion GDP per annum from the current level of 1.5 Trillion GDP per annum even before the year 2020. The company is seeing adequate opportunities to go on growing in its business. The company’s focus is thus to give further impetus to its growth plan by giving additional drive to grow.

In the current year 2012-13, Company sees volume growth of Plastics in the country between 10-12%. However, the Company is aiming to grow it’s business by 25% in value term in the current year. Company expects to grow by around 16% growth in volume. The increased percentage of turnover growth compared to volume will be due to increased share of value added products and normal inflation prevalent in the country’s economy.

FINANCE:

The Total Borrowing levels as on 30.06.2012 was Rs.3511.000 millions as compared to Rs.5142.800 millions as on 30.06.2011.This is despite the increase in the crude oil prices and consequent increase in the polymer prices coupled with abrupt depreciation of Indian Rupee vis a vis Dollar during the year which necessitated higher Working Capital requirements. The Company has repaid Term Loan installments and fixed deposits aggregating Rs.724.100 millions including pre-payment of outstanding amount of Term Loan Rs.125.000 millions bearing higher rate of interest. The Company has not taken any fresh Secured Term Loan during the year.

The Interest and Financial Cost in absolute terms have gone up to Rs.548.000 millions during financial year 2011-12 from Rs.425.000 millions during financial year 2010-11, principally, due to (i) increase in the cost of Short term/ Long term borrowings in view of prevalence of higher interest rate regime (ii) increase in the hedging cost on Foreign Currency Loans and (iii) deployment of larger funds for working capital requirements during most part of the year. The outstanding Interest bearing liabilities as on 30-06-2012 bears average Interest rate of 9.50% p.a. I 9.72% p.a. as on 30-06-2011. It is expected that interest rates may soften during the year.

The Company has judiciously managed its Working Capital requirements by availing Buyer’s Credit for importing Raw Materials/ Capital Goods, by way of fully hedged foreign exchange exposure and raising short term resources through placement of Commercial Papers, at competitive rates. Company’s focus shall remain to closely monitor and reduce its borrowing level and also to bring down total interest cost below 1% of the total turnover in the coming year/s.

During the year company had committed investment of around Rs.2800.000 millions out of which around Rs.734.000 millions only have been put to ground during the year mainly to augment certain capacities, new moulds and balancing equipments at its several existing sites. Work at Halol for Cross laminated Film products, at Hosur for Protective Packaging Products and at Halol for Composite Cylinders project is in full swing and shall be in operation during the current year. Company has made total outflow towards capital investment during the year to the tune of Rs.1690.000 millions including outstanding Capex payments of previous year. The same has been funded through the internal accruals of the Company.

During the year 2012-13, the Company envisages total Capex including commitments for 2013-14 of about Rs.4000.000 millions including existing commitments, mainly on the following segments.

To set up new Manufacturing Unit to produce Cross Laminated Film Products at Halol (Gujarat) To set up production of Plastic Piping system facility at erstwhile closed down Unit of PVC Film Business at Malanpur (M.P.) and utilize existing Land, Building and other infrastructure already in place.

To set up new manufacturing facility of Protective packaging Products at Hosur (Tamilnadu)

To put up the unit to manufacture Composite LPG Cylinders at Halol (Gujarat)

To acquire requisite Land in West Bengal to set up new unit for Plastic Piping System, Protective Packaging Products and Industrial components in Eastern India.

To create additional capacities and Product Range and to install automation and balancing equipments at all its existing sites and product groups.

The Company envisages a total capital investment outlay in excess of about Rs.11000.000 millions over a period of five years from 2011-12 to 2015-16 in addition to Capex for new products in Composites. In view of Company’s potential to generate healthy cash flows from its operations together with better management of Working Capital, the Company is reasonably confident to fund its future expansions from Internal Accruals and Suppliers’ Credit. Moreover the sale proceeds from “Supreme Chambers” will provide additional funds to meet its future Capex requirements.

CRISIL has assigned the Rating on the Bank facilities to “AA-/ Stable” and reaffirmed Short Term Debt programme Rating as A1+ , which reflects the sustained improvement in Company’s business risk profile backed by increase in contribution from value added products, improved profitability and prudent Working Capital management.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER / HALF YEAR ENDED 31^ST DECEMBER, 2012 (STANDALONE RESULTS)

(Rs. in millions)

		2^nd Qtr. Ended	1^st Qtr. Ended	Half Year Ended
	Particulars	31.12.2012	30.09.2012	31.12.2012
		(Reviewed)	(Reviewed)	(Reviewed)
1	Net Sales
a	Plastic Business	8058.138	6105.345	14163.483
b	Construction Business	0.000	0.000	0.000
		8058.138	6105.345	14163.483
2	Other Operating Income	90.061	70.970	161.031
	Total Income	8148.199	6176.315	14324.514
3	Goods Consumption
a	Raw Material Consumed	4791.969	4618.972	9410.941
b	Cost of goods traded	196.693	166.186	362.879
c	Cost of Premises Sold	0.000	0.000	0.000
d	(Increase)/ Decrease in stock in trade	387.579	(861.840)	(474.261)
		5376.241	3923.318	9299.559
4	Employees' Cost Benefit Expenses	285.727	278.996	564.723
5	Power & Fuel Expenses	338.035	332.620	670.655
6	Other Expenditure	956.187	792.216	1748.403
7	Total Expenditure before Finance (3+4+5+6)	6956.190	5327.150	12283.340
8	Operating Profit (1+2-7)	1192.009	849.165	2041.174
9	Other Income	40.511	0.540	41.051
10	Profit before Interest, Depreciation & Tax (8+9)	1232.520	849.705	2082.225
11	Finance Costs	138.272	114.569	252.841
12	Profit before Depreciation & Tax (10-11)	1094.248	735.136	1829.384
13	Depreciation, Amortisation & Impairment	190.004	185.767	375.771
14	Profit Before Tax (12-13)	904.244	549.369	1453.613
15	Provision for Taxation
	Corporate Tax	282.500	177.500	460.000
	Deferred Tax	0.000	0.000	0.000
16	Net Profit after Tax (14-15)	621.744	371.869	993.613
17	Share of Profit/ (Loss) in Associate	-	-	-
18	Consolidated Net Profit after Tax (16+17)	-	-	-
19	Paid Up Equity Share Capital (Face Value Rs.2/-)	254.054	254.054	254.054
20	Reserves Excluding Revaluation Reserve
21	Earning per Share-Basic & Diluted (Rs.)	4.89	2.93	7.82
22	Cash earning per Share-Basic & Diluted (Rs.)	6.39	4.39	10.78

PART II

A. Particulars of Shareholding

1	Public Shareholding
	- No. of Shares	63999525	63999525	63999525
	-% of Shareholding	50.38%	50.38%	50.38%
2	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	63027345	63027345	63027345
	- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	100.00%	100.00%	100.00%
	- Percentage of Shares (as a % of the total Share capital of the Company)	49.62%	49.62%	49.62%

B. INVESTORS COMPLAINTS
Pending at the beginning of the quarter	Nil
Received during the quarter	Nil
Disposed off during the quarter	Nil
Remaining unsolved at the end of the quarter	Nil

STATEMENT OF ASSETS AND LIABILITIES AS PER CLAUSE 41 (V) (H) OF THE LISTING AGREEMENT

(Rs. in millions)

	Particulars	Reviewed As at 31.12.2012
A	EQUITY AND LIABILITIES
1	Shareholders' Funds:
	(a) Share Capital	254.054
	(b) Reserve and Surplus	6858.904
	Sub Total - Shareholders Funds	7112.958
2	Non - Current Liabilities:
	(a) Long Term Borrowings	1796.666
	(b) Deferred Tax Liabilities (Net)	832.583
	(c) Other Long Term Liabilities	14.385
	(d) Long Term Provisions	114.197
	Sub Total - Non Current Liabilities	2757.831
3	Current Liabilities:
	(a) Short Term Borrowings	3864.888
	(b) Trade Payables	2036.543
	(c) Other Current Liabilities	1753.617
	(d) Short Term Provisions	425.549
	Sub Total - Current Liabilities	8080.597
	TOTAL - EQUITY AND LIABILITIES	17951.386
B	ASSETS
1	Non-Current Assets
	(a) Fixed Assets	9507.388
	(b) Goodwill on Consolidation	0.000
	(c) Non Current Investment	336.412
	(d) Long Term Loans and Advances	375.184
	(e) Other non Current Assets	2.182
	Sub Total - Non Current Assets	10221.166
2	Current Assets
	(a) Inventories	4467.026
	(b) Trade Receivables	2174.143
	(c) Cash and Cash equivalents	86.941
	(d) Short Term Loans and Advances	972.471
	(e) Other Current Assets	29.639
	Sub Total - Current Assets	7730.220
	TOTAL-ASSETS	17951.386

(Rs. in millions)

Particulars	2^nd Qtr. Ended			1^st Qtr. Ended			Half Year Ended
	Plastics	Construction	Total	Plastics	Construction	Total	Plastics	Construction	Total
Revenue
Net Income (There is no inter segment revenue]	8148.199	0.000	8148.199	6176.315	0.000	6176.315	14324.514	0.000	14324.514
Segment Result Segment Profit	1002.005	0.000	1002.005	663.398	0.000	663.398	1665.403	0.000	1665.403
Add: Other Income			40.511			0.540			41.051
Profit Before Interest and taxes			1042.516			663.938			1706.454
Less: Interest (net)			138.272			114.569			252.841
Taxes			282.500			177.500			460.000
Profit after taxes			621.744			371.869			993.613
Other Information
Segment Assets							16944.620	1006.766	17951.386
Segment Liabilities							9970.872	34.973	10005.845
Capital Expenditure Depreciation / Amortisation							1072.598 375.771	0.000 0.000	1072.598 375.771

Notes:

1. The Company processed 66,587 MT of polymers and achieved net product turnover of Rs.7950.500 millions during 2^nd quarter of the current year against processing of 64,694 MT and net product turnover of Rs.6999.200 millions in the corresponding quarter of previous year achieving volume and product value growth of about 3% and 14% respectively. The Company processed 1,26,599 MT of polymers and achieved net product turnover of Rs.13917.800 millions during 1^st half of the current year against processing of 1,11,455 MT and net product turnover of Rs.11589.500 millions in the corresponding period of previous year achieving volume and product value growth of about 14 % and 20% respectively. During the current year the Company envisages annual growth in volume and product value of about 16% and 25% respectively over the previous year.

2. In the Standalone results, during first half of the current year, other income consists of dividend received from Supreme Petrochem Limited of Rs.40.511 millions (Previous year Rs.81.022 millions).

3. The Board of Directors has considered the payment of interim dividend for the financial year 2012-13 @ 100% i.e. Rs.2/- per share of Rs.2/- (F.V) each and will be paid to the shareholders on the shares held as on the record date i.e. 29^th January, 2013.

4. Company's ongoing expansion plans involving total capital outlay of about Rs.4000.000 millions are progressing well. Brief status of the same is summarised hereinbelow:

(a) New Unit at Hosur in Tamilnadu for Protective Packaging Products has already commenced production during 1^st quarter of the current year.

(b) New Unit for expanding capacities of Cross laminated Film at Halol (Gujarat) is progressing as per schedule. First Production line of 4000 MT capacity which went into trials during October, 12 is fully stabilised. Second Production line of 4000 MT capacity has commenced trials during second half of January, 2013 and Third production line of similar capacity planned has been shipped and shall be operational by February, 2013.

(c) State of the Art plant for production of Composite Cylinders and Pipes have arrived at the site at Halol (Gujarat) and presently under installation. Likely to commence trial production during February - March, 2013.

(d) First phase capacity of Plastic Piping System manufacturing facility being set up at its earlier closed down PVC Film business unit at Malanpur near Gwalior (M.P.) shall be in operation by middle of February, 2013 and full capacity of 50,000 MT per annum with total investment of about Rs.1250.000 millions shall be in production by March-April, 2013.

(e) New Product Range of Bath Fittings which Company has planned to launch is in its final stage of readiness and likely to be in market by end of the current quarter.

(f) Augmenting of additional capacities, Automation and installation of balancing equipments at existing locations in various product segments are progressing as per schedule.

5. The Company is engaged mainly in production of plastic products. Company has recognized construction of commercial property as a new non recurring business activity which is shown as separate reportable segment as per Accounting Standard on Segment Reporting (AS-17) issued by ICAI.

Provision for Deferred Tax will be ascertained and accounted for at the end of the year.

6. Provision as per Accounting Standard (AS) 15-Employee Benefits- Revised will be accounted for at the end of the year.

7. The Consolidated Results includes Results of (a) the Company's 100% Subsidary Company viz "The Supreme Industries Overseas (FZE) incorporated in SAIF Zone, UAE and (b) Associate Company viz. "Supreme 8. Petrochem Limited", in which the Company holds 29.88% of its paid-up equity share capital.

9. The figures for the previous quarter/year have been regrouped/rearranged wherever necessary.

The above financial results, which have been subjected to "Limited Review" by the Auditors, have been reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on 22^nd January, 2013 and 23^rd January, 2013, respectively.

CONTINGENT LIABILITIES:

Particulars	30.06.2012 (Rs. in millions)
Bills/Cheques discounted	140.791
Bank Guarantees issued by Bankers	118.260
Claim against the company including Show-cause-cum-demand Notices in relation to Central Excise and Service Tax not acknowledged as Debts	100.629
Disputed Income Tax Demands	192.513
Disputed Sales Tax / Entry Tax Demands	58.151
Other claims against the company not acknowledged as debts	15.290
Future obligation of exports towards imported capital goods at concessional rate of duty under EPCG Scheme.	677.941

Fixed assets:

Tangible Assets

v Freehold Land

v Leasehold Land

v Buildings

v Plant, Machinery and Electrical Installations

v Moulds and Dies

v Furniture, Fixture and Office Equipments

v Vehicles (Owned and Under Finance Lease)

v Sundry Equipments

Intangible Assets

v Computer Software

WEBSITE DETAILS:

PROFILE:

Founded in 1942, Supreme is an acknowledged leader of India’s plastics industry.

Handling volumes of over 200,000 tonnes of polymers annually, effectively makes them the country’s largest plastics processors.

They also offer the widest and most comprehensive range of plastic products in India.

Their 19 advanced plants are powered by technology from world leaders, and complement their extensive facilities for R and D and new product development.

In fact, Supreme is credited with pioneering several products in India like Cross- Laminated Films, HMHD Films, Multilayer Films and SWR Piping Systems to name a few.

2014-15 will see The Supreme Group turnover touch a projected Rs. 50,000 million (USD 1100 million).

THEIR GROUP:

By the year 2014 – 15, The Suprme group will cross the Rs.100,000 million mark. Strategic technological alliances with world leaders reflect their commitment to producing with unmatched uncompromising quality.

Their Products have been received very well even nternationally from the most demanding customers in UK, Australia, Newzealand, United States, South Africa, South America, Russia, Singapore, Cyprus, Canada, Bangladesh and Spain.

AWARDS:

Export Award to fittings for pipes and hoses (of Plastics) from The Plastic Export Promotion Council, Mumbai for the year 2006 – 2007

Export Award to fittings for pipes and hoses (of Plastics) from The Plastic Export Promotion Council, Mumbai for the year 2007 – 2008

Export Award to fittings for pipes and hoses (of Plastics) from The Plastic Export Promotion Council, Mumbai for the year 2008 – 2009

Export Award to fittings for pipes and hoses (of Plastics) from The Plastic Export Promotion Council, Mumbai for the year 2009 – 2010

Export Award to fittings for pipes and hoses (of Plastics) from The Plastic Export Promotion Council, Mumbai for the year 2010 – 2011

Export Award to Plastic Pipes – Conduit Fittings and Accessories from The Plastic Export Promotion Council, Mumbai for the year 2002 – 2003

Export Award for Tarapulin from The Plastic Export Promotion Council, Mumbai for the year 2009 - 2010

Export Award to PVC Rigid Sheet / Films from The Plastic Export Promotion Council, Mumbai for the year 2001 – 2002

Export Award for Tarapulin from The Plastic Export Promotion Council, Mumbai for the year 2010 - 2011

Khushkhera unit bagged "The ACMA Award" for "Excellence in Quality and Productivity" in Silver category

Industrial Products Division signed a Technical Collaboration Agreement with Kumi Kasai Company Limited of Japan for Honda Car Business

Khushkhera plant participated in the competition jointly conducted by CII and Maruti for Kaizen and got 1^st Prize.

Talegaon plant has been honored with a Trophy towards 'Excellence in Quality' for the year 2010-11

Kheshkhera unit won Overall Manufacturing Excellence Award from Maruti Suzuki I Limited. During 2010-11

Khushkhera unit won Quality System Rating Award for 2010-11 From Maruti Suzuki I Limited.

Khushkhera unit won first prize in 7^th Quality Circle Competition held by ACMA. Also won Gold Award from Quality Circle Forum of India.

Best Kaizen Award for Sept 2010 From Whirlpool Cluster for Pondy Unit.

Obtained recognition for ‘Manufacturing Excellence’ from Maruti Suzuki I. Limited. This award was received by their Executive Director Shri SJ Taparia at MSIL conference held in Hong Kong.

Khushkhera plant Obtained Vendor Performance Award for 2009-10, for Manufacturing Excellence from Maruti Suzuki I. Limited.

Talegaon Unit won Piaggio Quality Merit Award - Nov.10

Noida Plant became the first Plant in Plastic Category and IIIrd Plant in the country to get certified for EN 16001-2009 (Energy Management System) It got this honor on 7^th Jan 2010 after clearing certification audit by BSI.

Energy Conservation Award and certificate from Govt. of India in Plastic Category won by Noida plant

Added TCL Business which is one more NANO theme of Tata Group – Tata Chemical Limited. Talegaon Unit and got Special Mention Award

Khushkhera plant got certification for BSEn 16001-2009 – Energy Management system. It became Second Plant in Plastic Category and IV Plant in the country to have this honor.

Khushkhera unit Won 1^st Award for 7^th ACMA Northern Region Quality Circle Competition, at PHD House, New Delhi on 9^th July 2010.

Khushkhera plant Won Award for incoming Quality Improvement from Maruti During Vendor Conference for 2008-09

Quality Circle Competition held at Bangalore during Duc. 2009. Khushkhera unit won Distinguished Category Award

Khushkhera unit won Bronze award for Excellence in Quality and Productivity in Plastic Category for 2009-20 from ACMA

Pondy Unit won Best Delivery Performance Award 2008, from Whirlpool of India Limited.

Pondy Unit won Best Delivery Performance Award 2008, from Whirlpool of India Limited.

PRESS RELEASES:

THE SUPREME INDUSTRIES LIMITED (SIL) ANNOUNCES UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE SECOND QUARTER / HALF YEAR ENDED 31^ST DECEMBER, 2012.

Mumbai, 23^rd January, 2013 – The Supreme Industries Limited (SIL), India’s leading Plastics processor, announced its Un-audited consolidated financial results for the second quarter / half year ended 31^st December, 2012, at its Board Meeting held today.

(A) The Company processed 1,26,599 MT of polymers and achieved net product turnover of Rs.13917.800 millions during the 1^st half of the current year against processing of 1,11,455 MT and net product turnover of Rs.11589.500 millions in the corresponding period of previous year achieving volume and product value growth of about 14% and 20% respectively.

(B) The consolidated financial performance highlights (excluding Construction business) for the 2^nd Quarter ended 31st December, 2012, are as follows –

· SIL’s Total Income and Operating Profit for the 2^nd quarter of the current year amounted to Rs.8149.800 millions and Rs.1193.700 millions, as compared to Rs.7213.000 millions and Rs.893.900 millions, for the corresponding quarter of the previous year, recording an increase of about 13% and 34% respectively.

· The Profit before Tax and Profit after Tax, for the 2^nd quarter of the current year amounted to Rs.865.200 millions and Rs.582.800 millions, as compared to Rs.592.600 millions and Rs.398.100 millions, for the corresponding quarter of the previous year, recording an increase of 46.00% and 46.40% respectively.

(C) The operational financial performance highlights for the half year ended 31^st December, 2012, excluding non-recurring construction business activities, are as follows –

· Total Income and Operating Profit for the 1^st half of the current year amounted to Rs.14326.200 millions and Rs.2041.500 millions as compared to Rs.12017.300 millions and Rs.1476.700 millions, for corresponding period of the previous year, recording an increase of 19.21% and 38.28% respectively.

· The Profit before Tax and Profit after Tax, for the 1^st half of the current year amounted to Rs.1413.300 millions and Rs.953.300 millions respectively, as compared to Rs.880.100 millions and Rs.586.600 millions, for the corresponding period of the previous year, recording an increase of 60.58% and 62.51% respectively.

(D) The consolidated financial results [including results of (a) the Company's 100% Subsidiary Company viz "The Supreme Industries Overseas (FZE) incorporated in SAIF Zone, UAE and (b) Associate Company viz. "Supreme Petrochem Limited", in which the Company holds 29.88% of its paid-up equity share capital], is summarized below :-

(Rs. in millions)

Particulars	Financial Results for the 2^nd quarter ended 31^st December, 2012			Financial Results for the Half year ended 31^st December, 2012
	2012	2011	Change (%)	2012	2011	Change (%)
Total Income	8149.800	7697.100	5.88	14326.200	12708.900	12.73
Operating Profit (PBDIT)	1193.700	1203.400	-0.81	2041.500	1914.300	6.64
Cash Profit (PAT + D)	772.900	785.500	-1.60	1329.200	1235.100	7.62
Profit Before Tax	865.300	902.100	-4.08	1413.300	1317.600	7.26
Consolidated Net Profit after Tax	663.700	592.900	11.94	1053.400	918.300	14.71

(E) The Board of Directors has approved payment of Interim Dividend @ 100% (Rs.2/- per Share) on 127026870 Nos. of Equity Shares, which together with tax on distribution of Dividend will absorb a sum of Rs.295.268 millions.

Expansion Plans

Company's ongoing expansion plans involving total capital outlay of about Rs.4000.000 millions are progressing well. Brief status of the same is summarised hereinbelow:

(a) New Unit at Hosur in Tamilnadu for Protective Packaging Products has already commenced production during 1st quarter of the current year.

(b) New Unit for expanding capacities of Cross laminated Film at Halol (Gujarat) is progressing as per schedule. First Production line of 4000 MT capacity which went into trials during October, 12 is fully stabilised. Second Production line of 4000 MT capacity has commenced trials during second half of January, 2013 and Third production line of similar capacity planned has been shipped and shall be operational by February, 2013.

(c) State of the Art plant for production of Composite Cylinders and Pipes have arrived at the site at Halol (Gujarat) and presently under installation. Likely to commence trial production during February - March, 2013.

(d) First phase capacity of Plastic Piping System manufacturing facility being set up at its earlier closed down PVC Film business unit at Malanpur near Gwalior (M.P.) shall be in operation by middle of February, 2013 and full capacity of 50,000 M.T. p.a. with total investment of about Rs.1250.000 millions shall be in production by March-April, 2013.

(e) New Product Range of Bath Fittings which Company has planned to launch is in its final stage of readiness and likely to be in market by end of the current quarter.

(f) Augmenting of additional capacities, Automation and installation of balancing equipments at existing locations in various product segments are progressing as per schedule.

Outlook

During the current year, the Company envisages annual growth in volume and product value of about 16% and 25% respectively over the previous year.

About Supreme Industries Limited

Supreme Industries Limited is India’s leading processors of plastics, offering a wide and comprehensive range of plastic products in India. The company operates in various segments viz. Plastics Piping Systems, Protective Packaging Products, Industrial Components, Material Handling Systems, Cross Laminated Polyethylene Films and Products thereof, Furniture and Performance Packaging Films.

Supreme Industries has 20 technologically advanced manufacturing facilities located at various places spread across the country. The company has built-up excellent relationship with its distributors and is also providing orientation to them, in order to ensure proper service to ultimate customers.

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.54.34
UK Pound	1	Rs.82.55
Euro	1	Rs.70.10

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		67

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.