MIRA INFORM REPORT

Report Date :

25.05.2013

IDENTIFICATION DETAILS

Name :	KALPENA INDUSTRIES LIMITED
Registered Office :	2 B, Pretoria Street, Kolkata-700071, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	03.09.1985
Com. Reg. No.:	21-039431
Capital Investment / Paid-up Capital :	Rs. 188.146 Millions
CIN No.: [Company Identification No.]	L19202WB1985PLC039431
TAN No.: [Tax Deduction & Collection Account No.]	CALK03269A
PAN No.: [Permanent Account No.]	AABCK2239D
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of PVC Compound and XLPE Compound.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 7988000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track record. Financially company appears to be strong. Trade relations are reported as fair. Business is active. Payment terms are usually correct as per commitment. The company can be considered normal for business dealing at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – 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

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	A- (The default risk is low)
Rating Explanation	The capacity for payment of financial commitment is considered strong.
Date	May 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 :	2 B, Pretoria Street, Kolkata – 700071, West Bengal, India
Tel. No.:	91-33-22823744/ 3745/ 8818
Fax No.:	91-33-22823739
E-Mail :	kolkata@kalpena.co.in
Website :	http://www.kalpenagroup.com
Factory 1 :	Kolkata Works I Kandua, Village + P.O. – Chatubhujkathi, P.S. – Sankrail, Howrah – 711302, West Bengal, India
Factory 2 :	Kolkata Works II Village – Bhasa, No.14, P.O. and P.S. Bishnupur, Diamond Harbour Road, South 24 Parganas - 743503, West Bengal, India
Factory 3 :	Daman Works 168/151-158, Dhabel Industrial Co- Operative Society Limited, Dhabel, Daman – 396215, India
Factory 4 :	Dadra Work Survey No.24/3, Village – Demini, Demini Road, Dadra, Dadra and Nagar Haveli – 396230, India
Factory 5 :	Bhiwadi Works A/1163, RIICO Industrial Area – IV, District – Alwar, Bhiwadi – 301019, Rajasthan, India
Factory 6 :	Falta Works Falta Special Economic Zone, Plot No.29, Sector I, Village – Simulberia, Mouza – Bisra, District South 24 PGS
Mumbai Office :	106, Laxmi Plaza, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India
Tel. No.:	91-22-67021470-2
Fax No.:	91-22-67021473
E-Mail :	mumbai@kalpena.co.in

DIRECTORS

As on 24.08.2012s

Name :	Mr. Narrindra Suranna
Designation :	Chairman and Managing Director
Date of Birth/Age :	01.08.1961
Qualification :	B.Com (Hons.), L.L.B from Calcutta University and MBA
Date of Appointment :	17.07.1996
Name :	Mr. Rajesh Kumar Kothari
Designation :	Whole Time Director
Date of Birth/Age :	48 Years
Qualification :	B.com
Name :	Mr. Indranil Dasgupta
Designation :	Whole Time Director
Date of Birth/Age :	08.12.1968
Qualification :	Graduate
Date of Appointment :	12.08.2011
Name :	Mr. Nirmalendu Guha
Designation :	Non-Executive Director
Date of Birth/Age :	79 Years
Qualification :	M. Tech (P. Eng and Mgt.), C. Eng, FIE (India), FI Plant E (UK), Hon FIPE, MMFI.
Name :	Dr. Rupak Dasgupta
Designation :	Non-Executive Director
Date of Birth/Age :	17.06.1944
Qualification :	B.Sc. (Hons), M.Sc.(Tech) and Phd from Calcutta University.
Date of Appointment :	01.11.2002
Name :	Mr. Nilay Guha
Designation :	Non-Executive Director
Date of Birth/Age :	20.09.1964
Qualification :	MBA
Date of Appointment :	11.02.2012

KEY EXECUTIVES

Name :	Mr. Jitendra Tiwari
Designation :	Senior President
Name :	Mr. I. C. Dakalia
Designation :	Chief Financial Officer
Name :	Mr. Ananth B. Chakrabartty
Designation :	Company Secretary

SHAREHOLDING PATTERN

As on 31.03.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	152972	0.81
Bodies Corporate	13700703	72.82
Sub Total	13853675	73.63
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	13853675	73.63
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	9700	0
Sub Total	9700	0
(2) Non-Institutions
Bodies Corporate	2983209	15.86
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	1505007	8.00
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	351504	1.87
Any Others (Specify)	111491	0.59
Non Resident Indians	99007	0.53
Clearing Members	12484	0.07
Sub Total	4951211	26.32
Total Public shareholding (B)	4960911	26.37
Total (A)+(B)	18814586	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0
Total (A)+(B)+(C)	18814586	0

BUSINESS DETAILS

Line of Business :

Manufacturer of PVC Compound and XLPE Compound.

Products :

PVC Compounds Insulation Sheathing PE Compounds Silane Grafted XLPE Compound upto 1.1.KV(LT / LTABC / FR / SELF CURE / MV) Silane Grafted XLPE Compound for MV upto 35 KV XLPE Compounds for continuous Vulcanization Line upto 35 KV Zero Halogen FRLS Compounds Semi- Conductive Compounds Filled Compound and Master Batches Calcium Carbonated / Talc filled in PE and PP Colour and Speciality Master Batches- UV, Antioxidant Processing Aid Optical Brightner, Lubricant Footware Compound PVC Compact and Micro cellular TPR Glossy, Matt, Semi – matt Transparent and colour PVC / NBR Compact and Micro-cellular EVA Cross linked Foam Pipe Compounds PEX PVC PPR Engineering Plastics Nylon – Glass and Mineral filled PP, PBT – Glass and Mineral filled

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
PVC Compound	MT	51000	36915
PE Compound	MT	103500	73110
PVC Sole and Hawai Chappal	Pairs/kg	8500000	-
**Agglomerates	MT	16000	3713
**Reprocessed Granules		1000	481
Scrap	MT	NA	NA

Note:

*Installed Capacity is certified by the Management and not verified by Auditors being technical matter.

**Includes the Installed capacity of transferror Company.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Dena bank
• State Bank of India
• Standard Chartered Bank
• HSBC Bank
• HDFC Bank Limited
• Indusind Bank
• The Hongkong and Shanghai Banking Corporation Limited

Facilities :

Secured Loans :	As on 31.03.2012 Rs. in Millions	As on 31.03.2011 Rs. in Millions
Term Loan from Banks	541.563	409.062
Loan repayable on demands From Banks*	1591.938	1119.848
Total	2133.501	1528.910

Term Loans from Banks

a) USD 8.75 million equivalent to Rs. 409.062 Millions (31.03.2011: USD 10 million equivalent to Rs. 467.500 Millions) loan is secured by exclusive charge on existing movable and immovable assets of Bhasa Unit in Kolkata and Silvassa Unit-I, Exclusive charge on all movable fixed assets of Kandua Unit, Kolkata, Exclusive charge on all movable assets of Bhiwadi Unit and is repayable in 16 equal quarterly installments; the next installment is due on 30^th May, 2012.

b) Indian rupee loan amounting Rs. 250.000 Millions (31.03.2011: Rs.Nil) is secured by exclusive charge on movable and immovable assets of Dankuni Unit in Kolkata and is repayable in 16 equal quarterly installments commencing from June 2013.

c) Indian rupee loan amounting Rs.Nil (31.03.2011: Rs. 10.000 Millions) are secured by first charge created by way of mortgage of company’s Land and Building and other fixed assets located at D-403, Dharam Palace, CHS limited, Shantivana, Borivalli (East), Mumbai – 400066, on first Pari-passu basis and was repaid in financial year 2011-12.

d) Indian rupee loan amounting Rs.Nil (31.03.2011: Rs.0.567 Million) is secured by Hypothecation against Motor Car and was repaid in financial year 2011-12.

* Includes Buyers Credit and Packing Credit

Working Capital Loans from Banks are secured by way of hypothecation of stocks of raw materials, work-in progress, finished goods, stores and spares and book debts of the Company. Mortgage of Flat located at D-403, Dharam Palce, CHS limited, Shantvaan, Borivalli (East), Mumbai – 400066, on First Pari-passu basis. These loans are further secured by a second charge over the residual value on the Fixed assets of the units both present and future located at the Dabhel Industrial area, Daman and others.

Banking Relations :	-
Auditors :
Name :	D.C. Dharewa and Company Chartered Accountants
Address :	Kolkata, West Bengal, India
Other Related Parties :	Shriram Financial Consultants Private Limited (A shareholder holding more then 20% of equity shares of the company)

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
30600000	Equity Shares	Rs. 10/- each	Rs. 306.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18814586	Equity Shares	Rs. 10/- each	Rs. 188.146 Millions

i) Terms/ Rights attached to Equity Shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to vote per share. 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 of their shareholding.

The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting.

During the year ended 31 March, 2012, the amount of per share dividend recognised as distribution to equity shareholders was Rs. 2.20

ii) Reconciliation of the number of shares

Equity Shares	Number of Shares	Rs. In Millions
Balance as at the beginning of the year	18494586	184.946
Add: Shares issued against Convertible Share Warrants	-	-
Add: Shares issued in the ratio of 1:10 to the shareholders of Alkom Speciality Compounds Limited pursuant to a Scheme of amalgamation without payment being received in Cash	-	-
Add: Shares issued in the ratio of 2:3 to the shareholders of Bavaria Poly Private Limited pursuant to a Scheme of amalgamation without payment being received in Cash	320000	3.200
Balance as at the end of the year	18814586	188.146

iii) Details of equity shares held by shareholders holding more than 5% shares:

Name of Shareholder	Number of Shares	% holding
Shriram Financial Consultants Private Limited	8957034	47.61%
Shyambaba Trexim Private Limited	3110336	16.53%
Subh Labh Vintrade Private Limited	1550000	8.24%
Inbara Holdings Private Limited	1450000	7.71%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		188.146	184.946	115.536
2] Share Capital Suspense		0.000	3.200	9.410
3] Reserves & Surplus		1808.850	1615.951	979.518
4] Share Warrants		0.000	0.000	120.000
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1996.996	1804.097	1224.464
LOAN FUNDS
1] Secured Loans		2133.501	1528.910	962.939
2] Unsecured Loans		0.000	59.154	403.672
TOTAL BORROWING		2133.501	1588.064	1366.611
DEFERRED TAX LIABILITIES		116.207	100.534	73.936
TOTAL		4246.704	3492.695	2665.011
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1107.831	964.796	735.951
Capital work-in-progress		159.643	30.260	47.590
INVESTMENT		25.360	25.360	20.911
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	873.194	752.093	558.779
	Sundry Debtors	2157.506	1725.781	1281.014
	Cash & Bank Balances	169.419	164.710	122.987
	Other Current Assets	35.455	37.387	0.000
	Loans & Advances	853.460	473.562	383.781
Total Current Assets		4089.034	3153.533	2346.561
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	652.638	516.909	216.894
	Other Current Liabilities	430.487	111.724	108.348
	Provisions	52.039	52.621	160.760
Total Current Liabilities		1135.164	681.254	486.002
Net Current Assets		2953.870	2472.279	1860.559
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4246.704	3492.695	2665.011

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations (net)	9103.903	8430.648	7188.042
		Other Income	28.419	45.199	56.045
		TOTAL (A)	9132.322	8475.847	7244.087
Less	EXPENSES
		Cost of material consumed	7783.239	7184.646
		Changes in inventories of finished goods	(59.294)	17.837
		Employee benefit expenses	108.534	89.606
		Other expenses	721.016	705.664
		TOTAL (B)	8553.495	7997.753	6685.226
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		578.827	478.094	558.861
Less	FINANCIAL EXPENSES (D)		168.562	129.881	109.570
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		410.265	348.213	449.291
Less/ Add	DEPRECIATION/ AMORTISATION (F)		88.352	70.541	56.737
	PROFIT BEFORE TAX (E-F) (G)		321.913	277.672	392.554
Less	TAX (H)		79.477	86.350	93.491
	PROFIT AFTER TAX (G-H) (I)		242.436	191.322	299.063
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		761.488	666.397	480.138
	BALANCE BROUGHT FORWARD FROM AMALGAMATING COMPANY		0.000	0.000	(3.164)
Less	APPROPRIATIONS
		Transfer to General Reserve	40.000	40.000	80.000
		Proposed final dividend on Equity Shares	41.392	41.392	25.418
		Corporate Dividend Tax	6.715	6.715	4.222
	BALANCE CARRIED TO THE B/S		715.817	761.488	666.397
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1208.987	625.693	265.452
	TOTAL EARNINGS		1208.987	625.693	265.452
	IMPORTS
		Raw Materials	2633.810	2521.040	2036.183
		Stores & Spares	2.849	0.205	0.561
		Capital Goods	6.642	41.753	69.731
	TOTAL IMPORTS		2643.301	2562.998	2106.475
	Earnings Per Share (Rs.)
	- Basic		12.99	11.71	25.88
	- Diluted		12.99	11.71	23.94

QUARTERLY RESULTS

PARTICULARS	30.06.2012 (Unaudited)	30.09.2012 (Unaudited)	31.12.2012 (Unaudited)
	1^st Quarter	2nd Quarter	3rd Quarter
Net sales	2745.500	3182.300	3110.300
Total Expenditure	2610.000	3006.300	2934.700
Profit before interest, depreciation and tax (Excluding Other Income)	135.500	176.000	175.600
Other income	18.200	0.000	0.000
Operating Profit	153.700	176.000	175.600
Interest	47.600	39.200	91.700
Exceptional; Items	0.000	0.000	0.000
Profit before depreciation and tax	106.200	136.800	83.900
Depreciation	20.400	24.200	37.100
Profit before tax	85.800	112.600	46.800
Tax	17.200	22.500	9.400
Profit after tax	68.700	90.100	37.400
Extraordinary items	0.000	0.000	0.000
Prior period expenses	0.000	0.000	0.000
Other adjustments	0.000	0.000	0.000
Net Profit	68.700	90.100	37.400

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.65	2.25	4.13
Net Profit Margin (PBT/Sales)	(%)	3.54	3.29	5.46
Return on Total Assets (PBT/Total Assets}	(%)	6.19	6.74	12.73
Return on Investment (ROI) (PBT/Networth)		0.16	0.15	0.32
Debt Equity Ratio (Total Debt /Networth)		1.06	0.88	1.12
Current Ratio (Current Asset/Current Liability)		3.60	4.63	4.83

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
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 LOAN:

Particulars	As on 31.03.2012 Rs. in Millions	As on 31.03.2011 Rs. in Millions
From other parties	0.000	59.154
Total	0.000	59.154

AMALGAMATION:

a) Pursuant to the Scheme of Arrangement (the Scheme) approved by the shareholders and sanctioned by the Hon’ble High Court at Calcutta on 28th July ‘2011, under the provisions of the Companies Act, 1956 (‘the Act’), the undertakings of Bavaria Poly Private Limited, the transferor company was transferred to and vested in the company as a going concern with effect from 1st April’ 2010 (the Appointed Date) and accordingly the Scheme had been given effect to in these accounts. According to the said Scheme, with effect from the Appointed Date, Bavaria Poly Private Limited has carried out all their business and activities in trust for the Company till the Scheme becomes effective.

b) In accordance with the scheme 320000 number of Equity Shares of Rs. 10/- each fully paid up and ranking pari passu with the existing equity shares are to be issued by the company to the ordinary shareholders of Bavaria Poly Private Limited in the ratio of 2 (Two) equity share of Rs. 10/- each of the company for every 3 (Three) equity shares of Rs. 10/- each fully paid up held in Bavaria Poly Private Limited.

c) The Amalgamation has been accounted for in the books of account of subject according to the pooling of interests method under Accounting Standard (AS) 14, ‘Accounting for Amalgamations’ issued by the Institute of Chartered Accountants of India.

d) Accordingly on and from the Appointed Date all assets, liabilities and reserves of Bavaria Poly Private Limited transferred to subject under the Scheme and recorded in the books of accounts of subject at their respective book value and in the same form and manner as recorded in the books of accounts of Bavaria Poly Private Limited.

e) Pending completion of relevant formalities of transfer of certain assets and liabilities acquired/transferred pursuant to the Scheme of Arrangement, such assets and liabilities remain included in the books of the company under the name of the transferor/transferee companies.

OPERATIONS

The Company has repeated an impressive performance in polymer compounds business. Revenue from Operations and other income for FY 2011-12 was Rs. 9132.300 Millions higher by 7.74% compared to Rs. 8475.800 Millions in the previous year and PAT was Rs. 242.400 Millions for the Current year as against Rs. 191.300 Millions in the previous year.

The Company’s Production and Sales have recorded a significant growth over the previous year. Higher level of Capacity utilization backed by a strong volume growth, tighter cost control geared the company to register notable performance for the year, in spite of a miniscule price increase. The Company has consciously been following a policy of steady growth in production for last several years.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

ECONOMIC OVERVIEW:

The overall global economy continues to face challenges to sustained recovery. Advanced economies that seemed to be shaping well at the start of 2011 lost steam towards the fag-end of the year and this uncertainty is clouding the prospects for global growth 2012. The growth momentum was impacted as the protracted debt crisis in the euro area and fiscal fragilities dampened business and consumer confidence.

The Indian economy was estimated to grow at 9% in Financial Year 2011-12, its growth is expected to be 6.5%

only. This was the lowest annual growth in the last 9 years and was sub-par in comparison to not just the precrisis

up to 2008 but also compared to immediate post crisis period.

FY 2011-12 began with inflation precariously close to double digits. Whole sale price index inflation at 9.74% and food inflation at 8.95% in April, 2011 showed a little signs of ceasing. Government continued to fight malaise with numerous calibrated steps, which constituted a combination of policies to improve supply, especially of food and basis agricultural products and curb fiscal and revenue deficits. Though, inflation ceased to 6.89% in March, 2012, it is expected to average 6.5% to 7.0% in FY 2012-13. A rise in commodity prices and weakening of the Indian rupee remains significant risk factors for the inflation trajectory.

INDUSTRY OVERVIEW

The products of Subject find application mainly in cable industries, packaging industries and footwear Industries. The Indian cable industry is highly fragmented with a large number of producers. The market for cables and wires is mainly dominated by the unorganized sector controlling about 70% of the domestic demand for wires and cables. Buoyancy in Real Estate, Power, Chemical, Hydrocarbons, and Refineries etc. had spurred the demand for cable and wires over the past 2-3 years. During FY11, the Indian cable industry witnessed an overall growth of about 15%.

Industry Structure and Developments

The company’s polymer compounds business is directly related to the fortunes of cable industry/packaging industry / footwear industry. If there is demand push in these segments of Indian economy, the top line and bottom line of Subject will significantly increase.

The strong Rand D facilities of subject, backed by competent Rand D personnel will help overcome many of the challenges including overall growth at a rate superior to industry average. Subject has been able to develop a number of products for domestic and international market such as Medium Voltage XLPE, Medium Voltage Semi conducting grades and also grades suitable for Pipes.

Subject has always endeavored to keep pace with evolving technologies and give high customize solutions to customers. Subject has bought into effect new, efficient and speedy customer support and logistics to enhance customer relationship. With these additional systems, Subject that constantly work with customers, meeting their requirements on time, every time.

COMPANY’S PERFORMANCE:

FINANCIAL PERFORMANCE:-

• Gross turnover for the year is Rs. 9130.000 Millions against Rs. 8470.000 Millions in 2010 – 11.
• PBIDT for the year Rs. 578.800 Millions as against Rs. 460.700 Millions in 2010-11.
• Profit after Tax for the year Rs. 242.400 Millions against Rs. 191.300 Millions in 2010-11.
• Capital Structure of the Company as at 31st March 2012 is Rs. 188.100 comprising of 18814586 nos. of equity shares of Rs. 10/- each.
• The Board of Directors has recommended an equity dividend of 22% i.e. Rs. 2.20 per equity shares of Rs. 10/- each.

Product wise operational performance:-

Product wise the company is engaged in manufacturing of the following products, the performance of which is discussed in the following lines-

PVC Compound and Master Batches

The turnover from PVC Compound and Master Batches is Rs. 2652.500 Millions this year as against Rs. 2530.500 Millions for the last year.

PE Compounds

Turnover from PE compound is Rs. 5651.000 this year as against Rs. 4947.800 Millions in the last year.

Agglomerates, Reprocessed Granules and Scraps

Turnover from these items are Rs. 1455.900 Millions as against Rs. 1530.000 Millions in the last year.

FUTURE OUTLOOK

The Company continued itself of being one of the leading market players in manufacturing of polymer compounds. They have offered a range of products to domestic and industrial users. In the years to come they will come up with more and more range of new products to satisfy the needs of the Customers. Subject is confident of accomplishing volume growth and consequently the market share in very near future. The company, being the only local player for Medium Voltage cables, enjoys possibility of achieving higher volumes and margins. The marketing team is making incessant effort for increasing the presence in overseas market. Increase application of polymers and Performance polymers in the field of Consumer durable, Automobiles and also in Alternative and Renewable Energy sector provide ample opportunity to Subject in the field of polymer and performance polymer to enhance its business.

UNAUDITED FINANCIAL RESULTS FOR THE THREE MONTHA AND NINE MONTHS ENDED 30^th JUNE 2012

(Rs. In Millions)

Particulars	Quarter Ended
	30.06.2012
1. Income form operations
a) Net sales/ Income from operation (net of excise duty)	2745.498
b) Other operating income	0.000
Total income from Operations(net)	2745.498
2. Expenditure
a) Cost of material consumed	2377.806
b) Purchases of stock in trade	0.000
c) Increase/Decrease inventories of finished goods, work-in-progress and stock-in-trade	47.766
d) Employees benefit expenses	33.513
e) Depreciation	20.348
f) Other expenditure	150.898
(Any item exceeding 10% of the total expenditure to be shown separately)	0.000
Total expenses	2630.331
3. Profit from operations before other income, financial costs and Exceptional Items	115.167
4. Other income	18.200
5. Profit from ordinary activities before finance costs and Exceptional Items	133.367
6. Finance costs	47.556
7. Profit from ordinary activities after finance costs but before Exceptional Items	85.811
8. Exceptional Items	0.000
9. Profit / Loss from ordinary activities before tax	85.811
10. Tax expenses	17.162
11. Net profit / Loss from ordinary activities after tax	68.649
12. Extraordinary items	0.000
13. Net profit / Loss for the period	68.649
14. Paid up equity share capital (Face value of Rs.10/- per share)	188.146
15. Reserves excluding revaluation reserves
Earning per share (EPS) (Not Annualised)
16. i) Earning per share (EPS) (Not Annualised) before Extraordinary items (of Rs. 10/-) (a) Basic (b) Diluted	3.65 3.65
PART-II
A. Particulars of shareholding
1. Public Shareholding
- Number of shares	4960911
- Percentage of shareholding	26.37%
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	Nil
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	Nil
Percentage of shares (as a % of total share capital of the company)	Nil
b) Non Encumbered
Number of shares	13853675
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100%
Percentage of shares (as a % of total share capital of the company)	73.63%
B. Investor Complaints
Pending at the beginning of the quarter	0
Receiving during the quarter	0
Disposed of during the quarter	0
Remaining unreserved at the end of the quarter	0

Notes:

1. The above Unaudited financial results for the 1st quarter ended on 30th June, 2012 have been reviewed by the audit committee and have also been approved by the Board at their respective meetings held on 14th August, 2012.

2. The Company operates in single business segment of plastic compounds and hence reporting under AS - 17 is not required.

3. Figures have been re-grouped / re- arranged wherever considered necessary.

4. Limited Reviews:-

The Limited Review by the Statutory Auditors of the Company for the 1st Quarter ended 30th June, 2012, as required under Clause - 41 of the Listing Agreement, has been completed and the related report is being forwarded to the Stock Exchanges. This Report does not have any impact on the above results and notes which needs to be explained.

FIXED ASSEST:

• Free hold land
• Factory Building
• Plant and Machinery
• Motor Car
• Scooter, Moped and Cycle
• Laboratory Equipment
• Electrical Installation
• Office Equipment
• Air Conditioner
• Computer
• Technical Know-how
• Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 55.61
UK Pound	1	Rs. 84.98
Euro	1	Rs. 71.94

INFORMATION DETAILS

Report Prepared by :

VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		50

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NB		NEW BUSINESS

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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