MIRA INFORM REPORT

Report Date :

12.04.2014

IDENTIFICATION DETAILS

Name :	APCOTEX INDUSTRIES LIMITED
Registered Office :	Plot No.3/1, M I D C Industrial Area, Taloja, Raigad - 410208, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	12.03.1986
Com. Reg. No.:	11-039199
Capital Investment / Paid-up Capital :	Rs. 52.235 Millions
CIN No.: [Company Identification No.]	L99999MH1986PLC039199
TAN No.: [Tax Deduction & Collection Account No.]	PNEA11171G
PAN No.: [Permanent Account No.]	AAACA3427G
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing and Marketing of Synthetic rubber including latexes, also known as Synthetic Emulsion polymers.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

A (60)

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 3100000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an old and well-established company having fine track. The rating reflects company’s healthy financial risk profile marked by sound liquidity position and fair profitability of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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’s current account deficit for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: “A”
Rating Explanation	Adequate degree of safety and low credit risk.
Date	18.12.2013

Rating Agency Name	CRISIL
Rating	Short term rating: “A1”
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	18.12.2013

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION DENIED

Name :	Mr. Anand Kumashi
Designation :	General Manager in Accounts and Finance
Contact No.:	91-22-27403500
Date :	09.04.2014

LOCATIONS

Registered Office /Factory :	Plot No.3/1, M I D C Industrial Area, Taloja, Raigad - 410208, Maharashtra, India
Tel. No.:	91-22-27403500
Fax No.:	91-22-27412052
E-Mail :	redressal@apcotex.com avkumashi@apcotex.com
Website :	http://www.apcotex.com
Corporate Office :	NKM International House, 178 Backbay Reclamation, Babubhai M Chinnai Marg, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-22838302 / 04
Fax No.:	91-22-22838291
Email.:	info@apcotex.com

DIRECTORS

As on: 31.03.2013

Name :

Mr. Atul C. Choksey

Designation :

Chairman

Date of Birth/Age :

62 years

Qualification :

Chemical Engineer from Illinois Institute of Technology, Chicago, USA

Other Directorships:

Company	Position	Committee Membership
APCO Enterprises Limited	Director	Nil
Ceat Limited	Director	Nil
Finolex Cables Limited	Director	Nil
Marico Industries Limited	Director	Nil
Mazda Industries Limited	Director	Nil
Shyamal Finvest (India) Limited	Director	Nil
Titan Trading and Agencies Limited	Director	Nil
Trivikram Investment and Trading Company Limited	Director	Nil

Name :

Mr. Girish C. Choksey

Designation :

Director

Name :

Mr. Amit C. Choksey

Designation :

Director

Name :

Mr. Manubhai G. Patel

Designation :

Director

Name :

Mr. Bipin V. Jhaveri

Designation :

Director

Name :

Dr. S. Sivaram

Designation :

Director

Date of Birth/Age :

67 Years

Qualification :

M.Sc.- Indian Institute of Technology, PHD – Purdue University, W. Lafayete, USA and Research Associate – The Institute of Polymer Science - Akron, USA.

Other Directorships:

Company	Position	Committee Membership
Asian Paints Limited	Director	Nil
GMM Pfaudler Limited	Director	Nil

Name :

Mr. T. N. V. Ayyar

Designation :

Director

Date of Birth/Age :

52 Years

Qualification :

Bachelor of Commerce, F.C.A (Fellow Member of the Institute of Chartered Accountant of India.)

Other Directorships:

Company	Position	Committee Membership
Crest Animation Studios Limited	Director	Audit Committee - Chairman Investor Grievance Committee - Member Remuneration Committee - Member
Emco Limited	Director	Audit Committee - Chairman Remuneration and Nomination Committee - Member Compensation Committee (ESOP Committee) - Chairman
Tata Ceramics Limited	Director	Audit Committee - Member

Name :

Mr. Shailesh S. Vaidya

Designation :

Director

Name :

Mr. Kamlesh S. Vikamsey

Designation :

Director

Date of Birth/Age :

53 Years

Qualification :

Chartered Accountant

Other Directorships:

Company	Position	Committee Membership
Aditya Birla Retail Limited	Director	Audit Committee - Chairman Remuneration Committee – Member ESOP Committee – Member
Neptune Developers Limited	Director	Audit Committee - Chairman Remuneration Committee - Member Shareholder Grievance Committee - Member
Navneet Publications (India) Limited	Director	Audit Committee - Member Remuneration Committee - Member
Man Infrastructure Limited	Director	Audit Committee - Member
Ramky Infrastructure Limited	Director	Audit Committee - Chairman Remuneration Committee - Chairman
Tribhovandas Bhimji Zaveri Limited	Director	Audit Committee - Member Remuneration Committee - Member

Name :

Mr. Abhiraj A. Choksey

Designation :

Managing Director

KEY EXECUTIVES

Name :	Mr. Anand V. Kumashi
Designation :	Gm – Accounts, Finance and Company Secretary
	AUDIT COMMITTEE:
Name :	Mr. Manubhai G. Patel
Designation :	Chairman
Name :	Mr. Girish C. Choksey
Designation :	Member
Name :	Mr. Bipin V. Jhaveri
Designation :	Member
Name :	Mr. Kamlesh S. Vikamsey
Designation :	Member (w.e.f. 25.01.2013)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.12.2013

Category of shareholders	Number of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1511642	14.58
Bodies Corporate	4460617	43.02
Sub Total	5972259	57.60
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	5972259	57.60
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1348	0.01
Financial Institutions / Banks	644	0.01
Any Others (Specify)	446	0.00
Foreign Bank	446	0.00
Sub Total	2438	0.02
(2) Non-Institutions
Bodies Corporate	242715	2.34
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	3506478	33.82
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	441626	4.26
Any Others (Specify)	203476	1.96
Clearing Members	32021	0.31
Directors & their Relatives & Friends	274	0.00
Non Resident Indians	167045	1.61
Trusts	4136	0.04
Sub Total	4394295	42.38
Total Public shareholding (B)	4396733	42.40
Total (A)+(B)	10368992	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)	10368992	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Synthetic rubber including latexes, also known as Synthetic Emulsion polymers.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

• State Bank of India
• Standard Chartered Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long term borrowings
From banks	220.301	256.899
Short term borrowings
Working capital loans from banks	210.442	324.078
Total	430.743	580.977
Note: Loan from a bank secured by hypothecation of the Company’s entire Plant and Machinery by way of first charge. Default in terms of repayment of principal and interest – NIL. Foreign currency loan due for repayment during the next twelve months considered in Other Current Liabilities is Rs. 54.390 millions. Loan from a bank secured by hypothecation of stock, book debts on parri passu basis and exclusive charge on land and building and second parri passu charge on plant and machinery. Default in terms of repayment of principal and interest – NIL.

Banking Relations :	--
Auditors :
Name :	Shah and Company Chartered Accountants
Related Parties:	Abhiraj Trading and Investments Private Limited Aeonian Investments Company Limited Amisha Credit and Capital Private Limited Apco Enterprises Limited Aquamarine Trading and Investments Private Limited Balasesh Leafin Limited Bhuvantray Investments and Trading Company Private Limited Casabella Interior Private Limited Choksey Chemical Private Limited Cons Holdings Limited Cybele Paradise Private Limited Dhumraketu Investments and Trading Company Private Limited Dhumravarma Trading and Investments Private Limited Forest Hills Trading and Investments Private Limited Gauriputra Investments and Trading Company Private Limited Haridwar Trading and Investments Private Limited HMP Mineral Private Limited Joshimath Trading and Investments Private Limited Laxmanjhula Trading and Investments Private Limited Mazda Colours Limited Propycon Trading and Investments Private Limited Saldhar Investments and Trading Company Private Limited Sammelan Investment and Trading Limited Shyamal Finvest (India) Limited The Hindustan Mineral Products Company Limited Titan Trading and Agencies Limited Trivikram Investments and Trading Company Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
14970000	Equity Shares	Rs.10/- each	Rs. 149.700 Millions
500	Preference shares	Rs.100/- each	Rs. 0.050 Million
25000	Preference shares	Rs.10/- each	Rs. 0.250 Million
	Total		Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5184496	Equity Shares	Rs.10/- each	Rs. 51.845 Millions
Add	(Including Rs. 0.390 million towards 78,051 shares forfeited at Rs. 5/- each)		Rs. 0.390 Million
	Total		Rs. 52.235 Millions

Reconciliation of the number of shares outstanding at the beginning and at the end of the year

Equity Shares	As at 31st March 2013
	No. of Shares	Rs. In Millions
At the beginning of the year	5184496	52.235
Add: Issued during the year	--	--
Outstanding at the end of the year	5184496	52.235

Details of Shareholders holding more than 5% equity shares in the company

Equity Shares of Rs. 10/- Each	As at 31st March 2013
	No. of Equity Shares	% Holding
Dhumraketu Investment and Trading Company Private Limited	829476	16.00
Saldhar Investment and Trading Company Private Limited	282372	5.45
Trivikram Investment and Trading Company Limited	986668	19.03
Atul Champaklal Choksey	335100	6.46

Terms/rights attached to equity shares

The Company has only one class of share i.e Equity Share which enjoy similar rights in respect of Voting, Payment of dividend and Repayment of capital.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	52.235	52.235	52.235
(b) Reserves & Surplus	729.744	645.532	589.708
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	781.979	697.767	641.943
(3) Non-Current Liabilities
(a) long-term borrowings	220.301	256.899	44.466
(b) Deferred tax liabilities (Net)	65.797	54.833	52.751
(c) Other long term liabilities	10.223	4.330	5.483
(d) long-term provisions	25.012	22.629	5.909
Total Non-current Liabilities (3)	321.333	338.691	108.609
(4) Current Liabilities
(a) Short term borrowings	210.442	324.078	224.285
(b) Trade payables	189.774	139.376	139.783
(c) Other current liabilities	154.851	51.457	67.221
(d) Short-term provisions	114.042	115.645	89.500
Total Current Liabilities (4)	669.109	630.556	520.789
TOTAL	1772.421	1667.014	1271.341
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	649.428	317.403	288.077
(ii) Intangible Assets	0.463	0.432	0.660
(iii) Capital work-in-progress	16.321	72.167	30.940
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	225.155	214.051	194.428
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	41.505	49.885	64.038
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	932.872	653.938	578.143
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	108.943	135.241	164.787
(c) Trade receivables	471.435	447.704	370.517
(d) Cash and cash equivalents	157.085	343.310	81.279
(e) Short-term loans and advances	90.696	80.414	70.434
(f) Other current assets	11.390	6.407	6.181
Total Current Assets	839.549	1013.076	693.198
TOTAL	1772.421	1667.014	1271.341

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Revenue from Operations	2721.263	2538.472	2019.196
	Other Operating Revenue	12.751	11.607	11.831
	Other Income	(0.171)	22.351	24.110
	TOTAL (A)	2733.843	2572.430	2055.137
Less	EXPENSES
	Cost of Materials Consumed	2044.175	1935.532	1520.907
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	18.638	(2.767)	(13.929)
	Employees benefits expense	107.811	100.850	77.748
	Other expenses	328.192	311.226	267.811
	TOTAL (B)	2498.816	2344.841	1852.537
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	235.027	227.589	202.600
Less	FINANCIAL EXPENSES (D)	23.481	36.605	26.476
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	211.546	190.984	176.124
Less/ Add	DEPRECIATION/ AMORTISATION (F)	31.130	27.864	25.442
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	180.416	163.120	150.682
Less	TAX (I)	52.363	48.482	43.446
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	128.053	114.638	107.236
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (K)	195.351	140.241	86.324
Add	Excise provision of dividend Distribution tax	0.000	0.140	0.000
Less	APPROPRIATIONS
	Transfer to General Reserve	12.805	11.464	11.000
	Dividend	7.930	6.728	6.028
	Tax on Dividend	46.660	41.476	36.291
	Total (M)	67.395	59.668	53.319
	Balance Carried to the B/S (J+K+L-M)	256.009	195.351	140.241
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	246.917	212.061	98.961
	TOTAL EARNINGS	246.917	212.061	98.961
	IMPORTS
	Raw Materials	177.371	175.570	101.503
	Components and Stores parts	0.613	4.144	4.181
	Capital Goods	26.056	1.524	0.000
	TOTAL IMPORTS	204.040	181.238	105.684
	Earnings / (Loss) Per Share (Rs.)	24.70	22.11	20.68

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	4.68	4.46	5.22
Net Profit Margin (PBT/Sales)	(%)	6.63	6.43	7.46
Return on Total Assets (PBT/Total Assets}	(%)	11.78	11.81	14.41
Return on Investment (ROI) (PBT/Networth)		0.23	0.23	0.23
Debt Equity Ratio (Total Debt/Networth)		0.56	0.83	0.41
Current Ratio (Current Asset/Current Liability)		1.25	1.61	1.33

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	52.235	52.235	52.235
Reserves & Surplus	589.708	645.532	729.744
Net worth	641.943	697.767	781.979
long-term borrowings	44.466	256.899	220.301
Short term borrowings	224.285	324.078	210.442
Total borrowings	268.751	580.977	430.743
Debt/Equity ratio	0.419	0.833	0.551

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2,019.196	2,538.472	2,721.263
		25.717	7.201

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2,019.196	2,538.472	2,721.263
Profit	107.236	114.638	128.053
	5.31%	4.52%	4.71%

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	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

MANAGEMENT DISCUSSION AND ANALYSIS

The company manufactures and markets a range of Emulsion Polymers - Synthetic Latexes and Synthetic Rubber.

CURRENT SCENARIO

The Company is one of the leading producers of polymer products namely, Synthetic Latexes (Vinyl Pyridine Latex, Carboxylated Styrene Butadiene Latex, Acrylic Latex, Nitrile Latex) and Synthetic Rubber (High Styrene Rubber) in India. The Company has one of the broadest ranges of products in the industrial segments it caters to. Company’s Synthetic Latexes products are used, among other applications, for tyre cord dipping, paper and paperboard coating, carpet backing, concrete modification/water proofing, textile finishing, paints, etc. Various grades of Synthetic Rubber find application in products such as footwear, automotive components, moulded items, V-belts, conveyor belts, hoses etc.

The Company’s major raw materials are petrochemical products and business is vulnerable to high volatility in the prices of crude oil and its downstream products.

The Company had introduced a range of Acrylics products for Paper, Construction, and Carpet segments three years earlier, which have been well received in the market.

A number of steps have been taken by the management to improve the operational efficiency of the Company in different functions like marketing, human resource development, production processes etc.

The company is recipient of Total Productive Maintenance (TPM) Excellence Award, Category A by the Japan Institute of Plant Maintenance (JIPM) and during the year, the company has successfully gone through the first stage assessment audit for TPM Consistency Award. TPM has helped the company significantly, in improving plant efficiencies, operations and rationalizing costs. During the year, the Company has integrated ISO 9001, ISO 14001 and OHSAS 18001.

The company has also been awarded “India Manufacturing Excellence Award” by The Economic Times.

It has been upgrading its own technology through in-house research and development efforts to meet the changing needs of its customers.

OPERATIONS DURING THE FINANCIAL YEAR 2012-13

During the year, the Company achieved Gross Value Sales of Rs.3026.247 millions, registering a growth of 8.90%, compared to that of the preceding year. The company exported its products worth Rs.252.970 millions compared to exports of Rs.223.441 millions during the previous year, a growth of 13.21%.

Overall, there was a satisfactory sales growth in the business of Synthetic Latexes. There was a sales de-growth in Synthetic Rubber business due to overall shrinking of market, witnessing competition from cheaper polymers.

There was a continuous thrust from the management to develop a strong research and development and technical service team to better understand the changing customer needs, improve product quality, productivity and process controls through technology up-gradation.

Operating profits before tax and depreciation but including the other income from the operations as also income from the Wind Turbine Generator installed at Sadawaghapur, Near Satara, Maharashtra, increased by 25.5% to Rs.211.715 millions as compared to Rs.168.633 millions during the previous year.

The profit after tax stood at Rs.128.053 millions as compared to Rs.114.638 millions in the previous year.

The Directors consider Company’s performance as satisfactory.

OUTLOOK

The Company expects the current year to be challenging in terms of volatilities in prices of major inputs materials. Overall growth of the economy, introduction of new products and improving its market share, are expected to augur well for the Company.

With company’s continuous endeavour to enhance efficiencies at all levels and functions, the Directors view the prospects for the financial year 2013-14 with cautious optimism.

CONTINGENT LIABILITIES

Claims against the Company not acknowledged as debts [Gross] Rs. 58.212 millions (P.Y. Rs. 56.600 millions).

(Rs. In Millions)

Particulars	31.03.013	31.03.2012
Direct Tax Matters	25.239	25.239
Excise and Custom	32.973	31.361

AUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER 2013

(Rs. In Millions)

Particulars	Quarter Ended		9 Months
	31.12.2013 (Audited)	30.09.2013 (Audited)	31.12.2013 (Audited)
1) Income from operations
a)Gross Sales	796.427	779.325	2405.119
b) Net sales/income from operations (Net of excise duty)	709.260	700.205	2156.810
c) Other operating income	3.210	4.834	10.702
Total Income from operations (net)	712.470	705.039	2167.512
2) Expenses
a) Cost of material consumed	544.020	528.034	1666.157
b) Purchases of stock-in-trade	--	--	--
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(0.225)	(2.888)	(32.421)
d) Employee benefits expense	27.816	29326	87.328
e) Other Expenditure	80.310	85.969	261.712
Total expenses	651.921	640.441	1982.776
3) Profit from operations before other income, finance costs and exceptional items (1-2)	60.549	64.598	184.736
4) Other income	6.790	3.933	21.019
5) Profit from ordinary activities before finance costs and exceptional items (3+4)	67.339	68.531	205.755
6) Finance costs	10.306	11.593	32.004
7) Cash Profit (5-6)	57.033	56.938	173.751
8) Depreciation and amortisation expense	18.199	17.509	49.939
9) Profit / (Loss) from ordinary activities after finance costs but before exceptional items (7-8)	38.834	39.429	123.812
10) Exceptional items	--	--	--
11) Profit / (Loss) from ordinary activities before tax (9+/-10)	38.834	39.429	123.812
12) Tax expense	7.879	14.462	29.106
13) Net Profit from ordinary activities after tax (11+/-12)	30.955	24.967	94.706
14) Extraordinary items (net of tax expense)	--	--	--
15) Net Profit for the period (13+/-14)	30.955	24.967	94.706
16) Share of profit / (loss) of associates	--	--	--
17) Minority interest	--	--	--
18) Net Profit / (Loss) after taxes, minority interest and share of profit / (loss) of associates (15 + 16 + 17)	30.955	24.967	94.706
19) Paid up equity share capital(Face value Rs. 2/- each)	52.235	52.235	52.235
20) Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year	--	--	--
21.i. Earnings per share (before extraordinary items) (of Rs 5/- each) (not annualised):
Basic	2.99	2.41	9.13
Diluted	2.99	2.41	9.13
21.ii. Earnings per share (after extraordinary items) (of Rs 5- each) (not annualised):
Basic	2.99	2.41	9.13
Diluted	2.99	2.41	9.13
A PARTICULARS OF SHAREHOLDINGS
1. Public Shareholding
No. of shares	4396733	4414018	4396733
Percentage of shareholding	42.40	42.57	42.40
2. Promoter and Promoter group Shareholding
a. Pledged/Encumbered
-Number of Shares	--	--	--
Percentage of Shares(as a % of total shareholding of promoter group)
b Non-Encumbered
-Number of Shares	5972259	5954974	5972259
-Percentage of Shares(as a % of total shareholding of promoter group)	100.00	100.00	100.00
-Percentage of Shares(as a % of the total Share Capital of Company	57.60	57.43	57.60

B. Investor Complaints	31.12.2013
Pending at the beginning of the quarter	0
Received during the quarter	33
Disposed of during the quarter	33
Remaining unresolved at the end of the quarter	0

Note:

a) The Company is engaged in the business of Synthetic Emulsion Polymers.

b) The above results were approved by the Board of Directors at their meeting held on 30th January 2014.

c) The above figures have been regrouped wherever nesessary.

FIXED ASSETS

• Leasehold Land
• Buildings
• Plant and Equipment
• Equipments
• Furniture’s
• Office Equipments
• Vehicles
• Electric and Pipe Fittings
• Wind Turbine Generator

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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 60.27
UK Pound	1	Rs. 101.10
Euro	1	Rs. 83.73

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	KAR
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--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		60

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.