MIRA INFORM REPORT

Report Date :

27.08.2014

IDENTIFICATION DETAILS

Name :	SINTEX INDUSTRIES LIMITED (w.e.f.1995)
Formerly Known As :	THE BHARAT VIJAY MILLS LIMITED
Registered Office :	Kalol - 382721, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	01.06.1931
Com. Reg. No.:	04-000454
Capital Investment / Paid-up Capital :	Rs. 311.200 Millions
CIN No.: [Company Identification No.]	L17110GJ1931PLC000454
TAN No.: [Tax Deduction & Collection Account No.]	AHMS00244G
PAN No.: [Permanent Account No.]	AADCS0858E
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Plastic products like prefabricated structures, monolithic constructions, FRP products and water storage tanks and niche structured yarn dyed textiles related products.
No. of Employees :	3703 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (68)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established company having fine track record. The rating takes into consideration the company’s leadership position in water tank business supported by well established distribution network with strong brand name and healthy financial risk profile. 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term Bank : AA
Rating Explanation	High degree of safety and very low credit risk.
Date	March 12, 2014

Rating Agency Name	CARE
Rating	Short term debt : A1+
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	March 12, 2014

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 31-03-2014.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No. 91-2764-220246)

LOCATIONS

Registered / Corporate Office :	Kalol - 382721, Gujarat, India
Tel. No.:	91-2764-223731 (6 Lines)/ 220246/ 220793/ 253000/ 253500/ 224301/ 2/ 3/ 4/ 5
Fax No.:	91-2764-220436/ 222868/ 253100/ 253800/ 220385
E-Mail :	bvm@sintex.co.in plastic@sintex.co.in hiteshmehta@sintex.co.in export@sintex.co.in
Website :	www.sintex-plastics.com www.sintex.in
Manufacturing Facilities :	· Kalol Near. Seven Garnala, Kalol - 382721, (N.G.), District - Gandhinagar, Gujarat State, India Tel. No.: 91-2764-253000/ 253500 Fax No.: 91-2764-253100/ 253800 E-Mail: bvm@sintex.co.in · Bangalore 61-C, Bommasandra Industrial Estate, Hosur Road, Bommasandra - 562158, Karnataka State, India · Kolkata Plot No. 40/41, Uluberia Growth Center, Near - Birsipur Railway Station, District - Howrah, West Bengal State, India · Daman Plot No. 34, 39 / 40, Survey No. 168, Dabhel Industrial Company Society Limited. Dabhel, Daman (Union Territory), India · Baddi Pillanvali Road, Near Raja Forging Gears Limited, District: Solan, Himachal Pradesh, India · Nagpur Plot No. B/124 Batti-Bori, MIDC, Batti-Bori, District Nagpur, Maharashtra, India · Salem 131, Sandhiyur Attayampatti, Behind S.V.T. School, Via-Mallur, Trichy Main Road, Salem - 636203, Tamilnadu, India · Bhachau Plot No. 1211/1, 1223/24/31, Bhachau Gandhidham Highway, District – Kutch, Bhachau - 370140, Gujarat, India
Branch Offices :	Located at: · Ahmedabad · Bangalore · Bhopal · Chandigarh · Chennai · Jaipur  · Kolkata · Lucknow  · Mumbai · New Delhi  · Pune  · Ranchi  · Secunderabad  · Trivandrum

DIRECTORS

As on 31.03.2014

Name :	Mr. Dinesh B. Patel
Designation :	Chairman
Date of Birth/Age :	04.07.1934
Qualification :	B.Sc.
Expertise in specific functional Area :	Industrialist with rich business experience in general.
Date of Appointment :	25.08.1972
Name :	Mr. Arun P. Patel
Designation :	Vice Chairman
Date of Birth/Age :	06.04.1935
Qualification :	B.Sc.
Expertise in specific functional Area :	Industrialist with rich business experience in general
Date of Appointment :	25.08.1972
Name :	Mr. Ramnikbhai Ambani
Designation :	Director
Name :	Mr. Ashwin Lalbhai Shah
Designation :	Director
Date of Birth/Age :	26.11.1936
Qualification :	B.com, LLB
Expertise in specific functional Area :	Legal Advisor and Practicing advocate
Date of Appointment :	24.01.2002
Name :	Dr. Narendra Kumar Bansal (w.e.f.07.05.2013)
Designation :	Director
Name :	Mrs. Indira J Parikh
Designation :	Director
Name :	Dr. Rajesh B. Parikh
Designation :	Director
Name :	Dr. Lavkumar Kantilal Shah
Designation :	Director
Date of Birth/Age :	01.04.1957
Qualification :	M.Sc., MBA, Ph.D., FTA
Expertise in specific functional Area :	Industrialist and adviser with rich business experience in general.
Date of Appointment :	01.05.2004
Name :	Mr. Rahul A. Patel
Designation :	Managing Director [Group]
Date of Birth/Age :	04.10.1959
Qualification :	B. Com., MBA (USA)
Expertise in specific functional Area :	Industrialist with rich business experience in general.
Date of Appointment :	21.10.1993
Name :	Mr. Amit D. Patel
Designation :	Managing Director [Group]
Date of Birth/Age :	29.01.1966
Qualification :	B. Com., MT (USA)
Expertise in specific functional Area :	Industrialist with rich business experience in general.
Date of Appointment :	21.10.1993
Name :	Mr. S.B. Dangayach
Designation :	Managing Director

KEY EXECUTIVES

Name :	Mr. Hitesh T. Mehta
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 11.08.2014

Category of Shareholders	No. of Shares	% of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2869830	0.85
Bodies Corporate	141965933	42.23
Sub Total	144835763	43.09
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	144835763	43.09
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1332489	0.40
Financial Institutions / Banks	14100208	4.19
Insurance Companies	50000	0.01
Foreign Institutional Investors	77633035	23.09
Sub Total	93115732	27.70
(2) Non-Institutions
Bodies Corporate	22944335	6.83
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	60090959	17.88
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	7518610	2.24
Any Others (Specify)	7650822	2.28
Non Resident Indians	4157055	1.24
Trusts	1924570	0.57
Clearing Members	1569197	0.47
Sub Total	98204726	29.21
Total Public shareholding (B)	191320458	56.91
Total (A)+(B)	336156221	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	336156221	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Plastic products like prefabricated structures, monolithic constructions, FRP products and water storage tanks and niche structured yarn dyed textiles related products.

Products :

Item Code No. (ITC Code)	Product Description
5208.59	Fabrics
5509.59	Yarn
3925.90	Thermoplastic Powder Moulding and Extruded Thermoplast Products

Brand Names :

“SINTEX”

GENERAL INFORMATION

No. of Employees :

3703 (Approximately)

Bankers :

· State Bank of India

Bank of Baroda

IDBI Bank Limited

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG-TERM BORROWINGS
Debentures	6000.000	6000.000
Term loans
From banks	12703.600	6797.900
From Financial Institutions	1443.000	377.000
SHORT TERM BORROWINGS
Loans repayable on demand From banks	3591.800	7208.200
Total	23738.400	20383.100

NOTE

LONG-TERM BORROWINGS

i) 2,500 (Previous year 2,500) 11.5% Secured Redeemable Non Convertible debentures of Rs. 10,00,000/- each, are redeemable at par in three equal annual installments starting from 18th February, 2016. The Debentures are secured by first pari passu charge on all the movable and immovable assets, both present and future, of the Company.

ii) 3,500 (Previous year 3,500) - 9.00% Secured Redeemable Non Convertible Debentures of Rs. 10,00,000/- each, are redeemable at par in two tranches - 1,500 Debentures (Rs. 1500.000 Millions) on 1st June, 2015 and 2000 Debentures (Rs. 2000.000 Millions) on 24th June, 2015. The Debentures are secured by way of first pari passu charge on all movable and immovable assets, both present and future, of the Company.

iii) Term Loans from the banks and Financial Institution are secured by first charge on pari passu basis on all the immovable and movable properties of the Company, both present and future, except on specified current assets and book debts on which prior charge created in favor of the Banks for working capital facilities

iv) Terms of repayments of term loans (including current maturities of long term debt) carrying interest rate range of 6% to 12% p.a. are given below:-

a) Loan outstanding of Rs. 249.100 Millions (previous year Rs. 499.100 Millions) - the overall loan repayment term includes 20 quarterly installment of Rs. 62.500 Millions each starting from 29th June, 2010 to 26th March, 2015

b) Loan outstanding of Rs. 2925.000 Millions (previous year Rs. 3087.500 Millions) - the overall loan repayment term includes annual installments of Rs. 162.500 Millions each from 31st March, 2013 to 31st March, 2016 and Rs. 1300.000 Millions each on 31st March, 2017 and 31st March, 2018.

c) Loan outstanding of Rs. 100.000 Millions (previous year Rs. 200.000 Millions) - the overall loan repayment term includes 20 quarterly installments of Rs. 25.000 Millions each starting form 16th April, 2010 till 16th January 2015.

d) Foreign currency loan of Rs. 7212.000 Millions (previous year Rs. 2175.600 Millions) is repayable in three equal annual installment of Rs. 2404.000 Millions at the end of 5th, 6th and 7th year i.e. starting from 14th December, 2017 till 14th December 2019.

e) The Technology Upgradation Fund Scheme (TUFs) term loans include:

i) Loan outstanding of Rs. 396.800 Millions (previous year Rs. 576.800 Millions) - the overall loan repayment term includes 32 quarterly installment of Rs. 46.900 Millions each starting from 30th June, 2008 till 30th May, 2016.

ii) Loan outstanding of Rs. 5.000 Millions (previous year Rs. 65.000 Millions) - the overall loan repayment term includes 32 quarterly installment of Rs. 15.000 Millions each starting from 30th September, 2008 till 30th June, 2014.

iii) Loan outstanding of Rs. 210.900 Millions (previous year Rs. 304.700 Millions) - the overall loan repayment term includes 32 quarterly installment of Rs. 23.400 Millions each starting from 17th October, 2014 to 17th April, 2016.

iv) Loan outstanding of Rs. 1918.300 Millions (previous year Rs. 495.000 Millions) - the overall loan repayment term includes 32 quarterly installment of Rs. 62.500 Millions each starting from 1st October, 2014 till 1st July, 2022.

v) Loan outstanding of Rs. 1443.000 Millions (previous year Rs. 377.000 Millions) - the overall loan repayment term includes 32 quarterly installment of Rs. 46.900 Millions each commencing after 27 months moratorium period i.e. starting from 20th October, 2014 till 20th July, 2022.

vi) Loan outstanding of Rs. 765.600 Millions (previous year Rs. 248.000 Millions) - the overall loan repayment term includes 32 quarterly installment of Rs. 31.300 Millions each commencing from 1st October , 2014 till 1st July, 2022.

SHORT TERM BORROWINGS

(i) Working capital facilities from the banks are secured by first charge on the stocks and book debts and by a second charge over the

immovable and other movable properties of the Company, both present and future.

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Ahmedabad, Gujarat, India
Associate :	Zillion Infra Projects Private Limited
Subsidiaries :	· Sintex Holdings B.V. Bright Auto Plast Limited Sintex Infra Projects Limited Amerange Inc. (Up to 29th August 2013) Zep Infratech Ltd. (Up to 26th March 2014) Sintex Wausaukee Composites Inc. Sintex France SAS Sintex Industries UK Limited Sintex Austria B.V. Southgate Business Corp. Wasaukee Composites Inc.- Owosso, Inc. WCI Wind Turbine Components, LLC. Sintex NP SAS NP Hungaria kft NP Nord SAS NP Slovakia SRO NP Savoie SAS NP Tunisia SARL NP Vosges SAS Segaplast SAS Segaplast Maroc SA Siroco SAS NP Jura AIP SAS NP Poschman Cuba City Real Estate LLC Owosso Real Estate LLC NP Polska SICMO SAS
Enterprises over which Key Managerial Personnel are able to exercise significant influence/control :	· Som Shiva (Impex) Limited Atik Land Developers Private Limited Sintex International Limited Prominent Plastic Limited BVM Finance Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
650000000	Equity Shares	Re. 1/- each	Rs. 650.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
313141780	Equity Shares	Re. 1/- each	Rs. 313.100 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
313109980	Equity Shares	Re. 1/- each	Rs. 313.100 Millions
	Less:- Amount Recoverable from ESOP Trust (face value of Rs.1 each, 19,23,000 (previous year 19,23,000) equity shares allotted to the Trust)		Rs. 1.900 Millions
	Total		Rs. 311.200 Millions

NOTE

(i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

Particulars	Opening Balance	QIP issue during the year	Conversion of share warrants into equity shares during the year	Closing Balance
Equity Shares
Year ended 31st March 2014
- Number of shares	313,109,980	--	--	313,109,980
- Amount in Millions	313.100	--	--	313.100
Year ended 31st March 2013
- Number of shares	272990866	26519114	13600000	313109980
- Amount in Millions	273.000	26.500	13.600	313.100

ii) Terms/ Rights attached to equity shares

The Company has only one class of equity shares having a par value of Re. 1/- per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of Shareholders in the ensuing AGM.

iii) As at 31st March, 2014 12,00,98,926 shares (As at 31st March, 2013 12,00,98,926 shares) were reserved for issuance as follows:

a) 19,23,000 shares (As at 31st March, 2013 19,23,000 shares) of Re.1 each towards outstanding employee stock options granted / available for grant.

b) 1,64,00,000 shares (As at 31st March, 2013 1,64,00,000 shares) of Re.1 each towards outstanding share warrants to promoter group companies.

c) 10,17,75,926 shares (As at 31st March, 2013 10,17,75,926 shares) of Re.1 each towards Foreign Currency Convertible Bonds (FCCB)

iv) Equity shareholder holding more than 5% of equity shares along with the number of equity shares held is as given below:

Class of shares / Name of shareholder	As at March 31, 2014
	No. of Shares held	% holding in that class of shares
Equity shares
BVM Finance Private Limited	78103905	24.94%
Kolon Investment Private Limited	20,634,046	6.59%
Opel Securities Private Limited	20,635,452	6.59%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	311.200	311.200	271.100
(b) Reserves & Surplus	29827.000	27399.100	23067.600
(c) Money received against share warrants	283.100	283.100	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	30421.300	27993.400	23338.700
(3) Non-Current Liabilities
(a) long-term borrowings	28560.600	20789.400	10741.900
(b) Deferred tax liabilities (Net)	3114.300	2710.300	2294.100
(c) Other long term liabilities	0.000	0.000	51.100
(d) long-term provisions	140.900	134.900	121.400
Total Non-current Liabilities (3)	31815.800	23634.600	13208.500
(4) Current Liabilities
(a) Short term borrowings	5499.500	9320.600	15922.500
(b) Trade payables	3758.000	2611.900	2037.700
(c) Other current liabilities	2029.500	2002.200	1740.600
(d) Short-term provisions	291.700	285.500	2848.900
Total Current Liabilities (4)	11578.700	14220.200	22549.700
TOTAL	73815.800	65848.200	59096.900
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	26642.300	21067.600	20086.200
(ii) Intangible Assets	12.600	2.800	14.500
(iii) Capital work-in-progress	845.000	1247.400	758.100
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	10136.600	9417.100	8417.100
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	18000.300	8776.100	1578.200
(e) Other Non-current assets	466.600	234.400	2627.400
Total Non-Current Assets	56103.400	40745.400	33481.500
(2) Current assets
(a) Current investments	155.800	248.400	325.200
(b) Inventories	1682.800	2009.700	1757.700
(c) Trade receivables	12996.400	12366.300	11460.700
(d) Cash and cash equivalents	1027.000	7812.900	6056.300
(e) Short-term loans and advances	871.800	2319.700	5971.000
(f) Other current assets	978.600	345.800	44.500
Total Current Assets	17712.400	25102.800	25615.400
TOTAL	73815.800	65848.200	59096.900

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	32331.200	29692.600	25625.900
		Other Income	1138.700	822.100	615.500
		TOTAL (A)	33469.900	30514.700	26241.400
Less	EXPENSES
		Cost of Materials Consumed	20565.200	19611.900	16579.800
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	233.700	(288.500)	(43.200)
		Employees benefits expense	1129.900	1064.000	944.600
		Other expenses	3243.400	3422.600	2973.500
		Cost of Materials Consumed	25172.200	23810.000	20454.700
		TOTAL (B)	32331.200	29692.600	25625.900
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8297.700	6704.700	5786.700
Less	FINANCIAL EXPENSES (D)		2373.800	1444.900	1104.900
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5923.900	5259.800	4681.800
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1383.300	1231.800	980.500
	EXCEPTIONAL ITEMS		(160.600)	(903.500)	(466.400)
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		4380.000	3124.500	3234.900
Less	TAX (H)		1029.400	432.600	937.900
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		3350.600	2691.900	2297.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		14907.500	13078.100	11570.000
Less	APPROPRIATIONS
		Transfer to General Reserve	350.000	275.000	250.000
		Debenture redemption reserve	332.700	332.700	332.700
		Proposed dividend on equity shares	219.200	219.200	177.400
		Tax on dividend	37.200	35.600	28.800
	BALANCE CARRIED TO THE B/S		17319.000	14907.500	13078.100
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Direct Export	385.000	365.500	342.500
	TOTAL EARNINGS		385.000	365.500	342.500
	IMPORTS
		Raw Materials	134.900	30.500	15.300
		Components and Spare Parts (Repairs)	26.500	64.500	65.900
		Capital Goods	134.900	42.000	159.900
	TOTAL IMPORTS		296.300	137.000	241.100
	Earnings / (Loss) Per Share (Rs.)
	Basic		10.77	9.46	8.48
	Diluted		10.77	9.44	8.48

QUARTERLY RESULTS

PARTICULARS	30.06.2014
Type	1^stQuarter
Net Sales	7624.500
Total Expenditure	6097.900
PBIDT (Excl OI)	1526.600
Other Income	114.700
Operating Profit	1641.300
Interest	584.200
Exceptional Items	-40.000
PBDT	1017.100
Depreciation	303.700
Profit Before Tax	713.400
Tax	204.300
Provisions and contingencies	0.000
Profit After Tax	509.100
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	509.100

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	10.01	8.82	8.75
Net Profit Margin (PBT/Sales)	(%)	13.55	10.52	12.62
Return on Total Assets (PBT/Total Assets}	(%)	6.97	5.66	6.48
Return on Investment (ROI) (PBT/Networth)		0.14	0.11	0.14
Debt Equity Ratio (Total Debt/Networth)		1.12	1.08	1.14
Current Ratio (Current Asset/Current Liability)		1.53	1.77	1.14

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	271.100	311.200	311.200
Reserves & Surplus	23067.600	27399.100	29827.000
Money received against share warrants	0.000	283.100	283.100
Net worth	23338.700	27993.400	30421.300
long-term borrowings	10741.900	20789.400	28560.600
Short term borrowings	15922.500	9320.600	5499.500
Total borrowings	26664.400	30110.000	34060.100
Debt/Equity ratio	1.142	1.076	1.120

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	25625.900	29692.600	32331.200
		15.869	8.886

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	25625.900	29692.600	32331.200
Profit	2297.000	2691.900	3350.600
	8.96%	9.07%	10.36%

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	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	Yes
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

LITIGATION DETAILS

HIGH COURT OF GUJARAT TAX APPEAL No. 1848 of 2008
Status: PENDING (Converted from : ST/3852/2008) CCIN No : 001092200801848 Last Listing Date: 16/04/2014 Coram: HONOURABLE MR.JUSTICE AKIL KURESHI HONOURABLE MS JUSTICE SONIA GOKANI
S.NO.	Name of the Petitioner	Advocate On Record
1	COMMISSIONER OF INCOME TAX-IV	MR NITIN K MEHTA for: Appellant(s)  1
S.NO.	Name of the Respondant	Advocate On Record
1	SINTEX INDUSTRIES LTD	MR MANISH J SHAH for :Opponent(s)  1

Presented On

: 04/12/2008

Registered On

: 04/12/2008

Bench Category

: DIVISION BENCH

District

: AHMEDABAD

Case Originated From

: THROUGH ADVOCATE

Listed

: 56 times

Classification

· DB - OJ - TAX APPEAL - GIFT TAX ACT, 1958 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - DEDUCTION IN RESPECT OF PROFIT RETAINED FOR EXPORT BUSINESS - U/S 80HHC

Act

· INCOME-TAX ACT, 1961

Office Details

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

15/08/2008

VAKALATNAMA

MR MANISH J SHAH ADVOCATE for RESPONDENT(s)  1

-

MR MANISH J SHAH:1

2

15/08/2008

VAKALATNAMA

MS PAURAMIB SHETH ADVOCATE for PETITIONER(s)  1

-

MS PAURAMI B SHETH:1

3

12/01/2010

VAKALATNAMA

MR MANISH J SHAH ADVOCATE for RESPONDENT(s)  1

5

MR MANISH J SHAH:1

4

09/05/2012

APPEARANCE NOTE

MS PAURAMIB SHETH ADVOCATE for PETITIONER(s)  1

-

MS PAURAMI B SHETH:1

5

29/01/2014

APPEARANCE NOTE

MR NITIN K MEHTA ADVOCATE for PETITIONER(s)  1

0

MR NITIN K MEHTA(3286) for P:1

Court Proceedings

S. No.

Notified Date

CourtCode

Board Sr. No.

Stage

Action

Coram

1

20/11/2009

10

-

FOR FINAL HEARING - TAX MATTERS

RULE/ADMIT

· HONOURABLE MR.JUSTICE K.A.PUJ  · HONOURABLE MR.JUSTICE RAJESH H.SHUKLA

2

12/02/2014

7

193

TAX APPEAL FINAL HEARING U/S. 80 HHC

NEXT DATE

· HONOURABLE MR.JUSTICE AKIL KURESHI  · HONOURABLE MS JUSTICE SONIA GOKANI

3

05/03/2014

7

254

TAX APPEAL FINAL HEARING U/S. 80 HHC

NEXT DATE

· HONOURABLE MR.JUSTICE AKIL KURESHI  · HONOURABLE MS JUSTICE SONIA GOKANI

4

16/04/2014

7

167

TAX APPEAL FINAL HEARING U/S. 80 HHC

· HONOURABLE MR.JUSTICE AKIL KURESHI  · HONOURABLE MS JUSTICE SONIA GOKANI

Available Orders

S. No.

Case Details

Judge Name

Order Date

CAV

Judgement

Questions

Transferred

1

TAX APPEAL/1848/2008

· HONOURABLE MR.JUSTICE K.A.PUJ  · HONOURABLE MR.JUSTICE RAJESH H.SHUKLA

20/11/2009

N

ORDER

-

Y

Certified Copy

S. No.

ApplicantName

ApplicationType

Application Date

UOL Number

Order Date

Notify Date

Delivery Date

Status

Nature Of Document

1

MRS MAUNA M BHATT

ORDINARY

23/11/2009

O/35469/2009

20/11/2009

24/11/2009

27/11/2009

Delivered

-

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10489935	17/04/2014	12,200,000,000.00	PNB INVESTMENT SERVICES LIMITED	PNB INVESTMENT SERVICES LIMITED, YUSUF SARAI COMM  ERCIAL COMPLEX, GULMOHAR ENCLAVE, NEW DELHI, DELHI  - 110049, INDIA	C03322823
2	10397351	07/01/2013 *	6,500,000,000.00	STATE BANK OF INDIA CAG AHMEDABAD BRANCH ACTING AS  SECURITY AGENT FOR SBI LONDON	CAG BRANCH, 58, SHRIMALI SOCIETY, MITHAKHALI SIX  ROADS, NAVRANGPURA, AHMEDABAD, GUJARAT - 380009,  INDIA	B66923731
3	10400951	07/01/2013	4,500,000,000.00	STATE BANK OF INDIA CAG AHMEDABAD BRANCH ACTING AS  SECURITY AGENT FOR IDBI TRUSTEESHIP SERVICES LTD	CAG BRANCH, 58, SHRIMALI SOCIETY,, MITHAKHALI SIX  ROADS, NAVRANGPURA,, AHMEDABAD, GUJARAT - 380009,  INDIA	B67229468
4	10368793	12/07/2012	4,500,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG, BA  LLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA	B45006236
5	10333277	31/01/2012 *	3,250,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTING GROUP, 58, SHRIMALI SOCIETY,  NAVRANGPURA, AHMEDABAD, GUJARAT - 380009, INDIA	B32196958
6	10228658	20/08/2010 *	3,500,000,000.00	IL AND FS TRUST COMPANY LIMITED	IL AND FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI, MAHARASHTRA  - 400051, INDIA	A92122035
7	10156236	27/01/2010 *	2,500,000,000.00	IL AND FS TRUST COMPANY LIMITED	IL AND FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI, MAHARASHTRA  - 400051, INDIA	A79571733
8	10091760	27/01/2010 *	1,750,000,000.00	STATE BANK OF INDIA FOR ITS OWN BEHALF AND ON BEHA  LF OF BANK OF BARODA	CORPORATE ACCOUNT GROUP, 58, SHRIMALI SOCIETY, NAVRANGPURA, AHMEDABAD, GUJARAT - 380009, INDIA	A79814844
9	10014919	27/01/2010 *	750,000,000.00	IDBI BANK LIMITED	IDBI COMPLEX, LAL BUNGLOW, OFF C G ROAD, AHMEDABAD, GUJARAT - 380006, INDIA	A79572277
10	10003517	27/01/2010 *	1,500,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNT GROUP, 58, SHRIMALI SOCIETY, NAVRANGPURA, AHMEDABAD, GUJARAT - 380009, INDIA	A79815254
11	90103215	31/01/2012 *	12,250,000,000.00	STATE BANK OF INDIA ON ITS OWN BEHALF AND ON BEHAL  F OF BANK OF BARODA AND IDBI BANK LIMITED	CORPORATE ACCOUNTING GROUP, 58, SHRIMALI SOCIETY,  NAVRANGPURA,, AHMEDABAD, GUJARAT - 380009, INDIA	B32197691

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG-TERM BORROWINGS
Foreign Currency Convertible Bonds	8414.000	7614.500
SHORT TERM BORROWINGS
Loans repayable on demand From banks	1907.700	2112.400
Total	10321.700	9726.900

CORPORATE INFORMATI ON

Subject, the flagship company of Sintex group is a public company domiciled in India and incorporated in 1931 under the provisions of the Companies Act, 1956. It is headquartered in Kalol in Gujarat. Its shares are listed on NSE and BSE in India. The Company is one of the leading providers of plastics and niche structured yarn dyed textiles related products in India. Initially the Company started its operations in textile and diversified in plastic business in mid 70s. The plastic division manufacturers products which includes prefabricated structures, monolithic constructions, FRP products and water storage tanks.

FINANCIAL PERFORMANCE:

The Company’s performance was commendable despite the prevailing policy logjam and the Government’s inability to clear important growth inducing policies which put economic progress on the backburner.

The Company’s posted a gross turnover of Rs.33144.700 Millions in 2013-14 – a growth of 8.14% over Rs.30648.500 Millions in 2012-13. The growth was primarily due to the robust performance of the prefab business supported by good business volumes from other business verticals.

The Company’s flagship business segment – monolithic construction reported a subdued performance due to the

prevailing external factors that impacted business profitability – namely delays in site clearances and a stretched receivables cycle.

EBIDTA grew to Rs. 8297.700 Millions against Rs. 6704.700 Millions in the previous year, while Net Profit climbed to `335.06 crore against Rs. 2691.900 Millions over the same period. The earning per share stood at Rs. 10.77 (basic) and Rs. 10.77 (diluted) in 2013-14.

Cash plough back into the business was Rs.592.39 crore in 2013- 14 as against Rs.525.98 crore in 2012-13 – providing an adequate cushion for funding growth initiatives.

BUSINESS REVIEW AND DIVISIONAL PERFORMANCE:

Despite the external environment being plagued with high interest costs, stubborn inflation and a policy logjam, the Company’s performance was heartening. Most key business verticals, other than monolithic construction, registered improved numbers. A detailed discussion of the Company’s operations is given under the ‘Management discussion and analysis report.

A. Plastics division: The Company’s plastics business performed well. Revenue grew 6.77% from Rs.25931.400 Millions in 2012- 13 to Rs.27686.100 Millions in 2013-14 despite the planned degrowth in the monolithic construction space. The plastics business contributed 90.87% of the Company’s consolidated revenues.

The prefab business retained its star performer position with large business volumes from Maharashtra (for sprucing up education facilities), Gujarat (for strengthening infrastructure in tribal areas) and heartening volumes from other states.

Other businesses namely water storage tanks, sandwich panels and sub-ground structures logged in strong business volumes to make a meaningful contribution to the business segment growth.

The SMC business remained the key growth contributor as the Company extended its footprint into new states generating heartening volumes. Pallets and insulated boxes also made important contribution to the division’s growth.

B. Textiles division: The Company’s textile business recorded a strong rebound in 2013-14 supported by strong business volumes. Revenue grew 15.72% from Rs.471.71 crore in 2012- 13 to Rs.5458.600 Millions in 2013-14. This was achieved primarily due to the shift in focus from international markets to domestic customers which strengthened business volumes. Besides, the Company’s innovation efforts in rejuvenating its products baskets, optimising costs and widen its reach in domestic markets also contributed rich dividends.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC OVERVIEW

A. GLOBAL ECONOMY

Global gross domestic product grew by 3% in 2013 against 3.1% in 2011 primarily due to the continuing economic

volatility in the first half of the year followed by better conditions in the second half. Demand in advanced economies improved, much of the increase being derived from higher inventory demand. In emerging market economies, an export rebound strengthened the improved showing even as domestic demand remained subdued.

Outlook for the current year: Financial conditions which help to shape the economy’s growth performance have improved substantially over the last few months. Positive contributions from the equity markets, interest rate spreads and credit conditions support the economic momentum going forward.

Furthermore, easing fiscal drags should give the private sector more breathing room to push the economy forward. The IMF indicates that emerging markets will account for much of global growth, with their economies forecast to expand nearly four times faster over advanced economies. As far as advanced economies are concerned, the US is expected to emerge as the key growth driver. Eurozone is turning a corner after recovering from recession and is expected to post positive economic growth in 2014. The result is that global growth is projected slightly higher (around 3.7%) in 2014, rising to 3.9% in 2015

B. INDIAN ECONOMY

India’s economic growth rate in 2013-14 was estimated at 4.9 per cent, faster pace than in the previous year mainly following improved performance in its agriculture and allied sectors. An Economic expansion improved in the second half, given that GDP grew by 4.6 per cent in the April-September period.

For 2013-14, the CSO projected a growth rate of 4.6 per cent in agriculture and allied sectors, up from 1.4 per cent a year earlier. Manufacturing, however, was expected to register a contraction of 0.2% compared to a growth of 1.1 per cent in the previous year. More importantly, CAD, which is the difference between the inflow and outflow of foreign exchange, declined to US$ 32 billion in 2013-14 against US$ 88.2 billion in 2012-13 (Source: Economic Times). This was largely due to a steep decline in gold imports and increase in exports.

Per capita income at current prices during 2013-14 was estimated at Rs.74,920 compared with Rs.67,839 during 2012- 13, a rise of 10.4 per cent.

Estimates: According to the NCAER, India’s economic growth is likely to accelerate at 5.6% while Asian Development Bank projected India’s GDP growth at 5.5% for 2014-15, depending on its ability to implement structural reforms.

THE PLASTICS SECTOR

The Indian plastic industry is making significant contribution to the development and growth of various key sectors in India, mainly automotive, agriculture, construction, electronic, healthcare, textile and FMCG as this sector continues to break into newer spheres of manufacturing enabling products to become lighter, stronger and more cost-effective.

The plastic industry is one of the biggest contributors to India’s GDP and is among the fastest growing sectors with annual growth rates averaging between 12%-15%.The growth in plastic consumption is primarily due to the substitution of traditional material with plastic variants, expansion of the middle income group and numerous new applications.

The Indian plastic industry enjoys a pan-India presence. However, is, highly fragmented with more than 25,000 processors in the fray, with less than 100 large processors accounting for 30% share of the industry. The growth of organised players has outpaced that of other players in the sector through constant innovation and niche product launches.

The plastics industry can be classified into (a) manufacturing of polymers, or ‘upstream’ processes, and (b) conversion of polymers into plastic articles, which is commonly referred to as ‘downstream’.

Despite more than 10 technologies prevailing for plastic processing in India, the sector can be largely categorised into three broad segments namely injection moulding, blow moulding and extrusion, catering to the requirements of a wide array of applications like packaging, automobile, consumer durables, healthcare, among others. The processes for conversion of polymers determine the final products.

OUTLOOK

According to the All India Plastic Manufacturer’s Association (AIPMA), domestic consumption has been growing at 10-12% CAGR over the last decade. Going ahead, the size of the plastic processing industry – is expected to touch Rs.1.3 trillion(18.9 million tonnes) by 2015. The exponential growth will see this number go up to 40,000 units, employment will increase to 7 million by 2015 from the current 3.5 million-plus people (direct and indirect). To achieve this target, India will require 42,000 new machines and an investment estimated at US$ 10 billion by 2015.

1. PLASTICS BUSINESS AND INFRASTRUCTURE BUSINESS

Sintex is recognised as a pioneer in plastic processing by creating unique solutions that extended the frontiers of plastic application.

The Company offers a huge bouquet of products -- from creating housing units to small components that find application in the medical equipment and electrical businesses -- processed at its facilities across India – emerging as the only plastic processing Company with a pan-India manufacturing presence.

Revenue from this business grew by 14.88% from Rs.47294.300 Millions in 2012-13 to Rs.54331.900 Millions in 2013-14 despite the continued endeavour to gain business exposure in the monolithic construction space, due to prevailing external adversities. This segment contributed 90.87% of the Company’s consolidated revenues. EBIDTA moved to Rs.9124.000 Millions in 2013-14 against Rs.6659.500 Millions in 2012- 13. Input cost prices and inflation pressured] EBIDTA margins of this business.

The prefab business retained its star performer status, registering the maximum growth and cushioned the vacuum due to throttled exposure in the monolithic space. The Company has further divided its plastic business into two major verticals namely building products and custom moulding based on the business characteristics and customer profile. This has facilitated focused efforts in growing each segment individually.

A) Building products

This business vertical comprises of products that find application in residential, commercial and industrial structures, and comprised of the following sub-verticals:

- Prefabricated structures

- Monolithic concrete construction (MCC)

- Water storage tanks

- Plastic sections

- Sub-ground structures and waste management solutions

- Environment products

i) Prefabricated structures

As the name suggests, these are completely-knocked-down plastic kits for enclosures (large and small), which can be assembled in six or seven days – making it the fastest and most cost-effective construction solution.

India’s rapid economic growth over the last decade has magnified the need for superior construction technologies over the brick-and-mortar system – especially for strengthening social infrastructure (classrooms, health centres, sanitation amenities, community centres)in rural India with speed as these basic amenities were largely overlooked during India’s economic resurgence.

The Government has endeavoured to provide these facilities to the rural masses through its various programmes – Sarva Shiksha Abhiyan, National Rural Health Mission (NRHM), Mid-Day Meal programme, to name a few– creating robust demand for fast and cost-effective construction technologies.

• The Company has bagged prestigious orders for providing primary health centres and dispensaries under the NRHM programme in Madhya Pradesh and West Bengal,among others, which are under various stage of execution.

• The Company is already executing an order for constructing 38,000 Mid-Day Meal kitchens in every village of Maharashtra. A large project management team is meticulous following the detailed project management plan for timely site and project delivery The speed and quality of execution has received recognition from the Central Government which could generate other such opportunities.

• The Company received a prestigious project from the Gujarat Government to create facilities namely schools, hospitals and other infrastructure for upliftment of tribal people. This project has also received heartening recognition from various governmental agencies.

• The Company is working on creating Central Universities through the prefabricated route in Jharkhand and Bihar.

• The Company has initiated the creation of Agri-sheds and warehouses along with silos through the prefabricated route in several states which is likely to generate an interesting response over the medium term.

Sandwich panels:

Polyurethene sandwich panels has gained increases acceptance as a modern building material as opposed to the traditional route of brick and mortar construction.

The Company’s sandwich panels come in varying thickness (20mm-150mm) with different structural designs and

colours (the external sheets being pre-painted colour-coated Galvalume sheets) and is generating a very good response.

Light-weight and excellent insulation properties have positioned sandwich panels as the preferred construction material in India (especially in the high temperature zones) and the product is finding use in diverse applications.

Cold chain network:

The cold chain programme being accelerated by the Government through attractive subsidies is generating significant interest in this product. The Company’s strategy of positioning this product as the preferred building material for cold storage infrastructure mushrooming pan- India has generated sizeable volumes in 2013-14.

Industrial buildings:

For large industrial buildings being made through PEB route, builders have shown an increasing preference for sandwich panels as walling and roofing element due to its light weight and insulation properties which make the structure energy efficient and provide better comfort for its occupants. The product has also been accepted for meeting Green Building norms which is adding to its acceptability.

In 2013-14, the Company has supplied large volumes of sandwich panels to PEB players. It has also provided large volumes of material in railways and power projects, among others.

Besides, the Company is working on establishing a retail business for this product through dedicated fabricators

and franchisees to stock material and convert these walling and roofing elements into useful structures such as house extension, sheds, rooftop house, Prefab etc. It has achieved commendable success in this endeavour.

ii) Monolithic construction

Due to challenging times and policy paralysis, several important decisions pertaining to low-cost housing and funds sanction for these projects were put on the back burner. It has resulted in a sectoral slowdown.

The Company enjoys a strong order book position due to its novel technology and demonstrated expertise in project management.

• It has a significant presence in Uttar Pradesh with several projects and multiple sites under execution.

• In Delhi, the Company has bagged a large project through DUSIB, DSIIDC and is constructing more than 7,600 units at one single site which upon completion (in 2014-15) will emerge as the single largest development project.

• Construction activities in other projects in Pondicherry and Gujarat are also in full swing.

Due to a number of projects in at various stages of execution, the Company did not initiate any projects during the year. Besides, the Company is cherry-picking orders based on important parameters that ensure smooth and speedy completion – namely regulatory clearances and fund allocation. Additionally, the Company has strategised to restrict its geographic spread to ensure fastest project execution.

The Company started moving up the value chain with a focus on EWS, MIG and HIG housing. It has developed execution capabilities for construction of G+13 structures using this technology (earlier focused on G+3). Most of the new projects are now founded on Multi-storeyed construction.

iii) Water storage tanks

Having changed the way the average Indian stores water for household consumption, the Sintex brand has become synonymous with water storage tanks. Despite having pioneered the concept of plastic water storage tanks more than 35 years ago, the Company commands leadership and premier position in the water tanks market with a major market share.

The huge product range comprising water tanks for every conceivable application - loft tanks in individual apartments to water storage solutions for a pin code and underground storage tanks in various sizes– position it as a preferred name in this business.

The Company’s most recent innovation, the white triple wall water tanks has received an overwhelming response from the average Indian for its superior life, functionalities and aesthetics and is fetching a premium over competing variants. To cater to the demand of water tanks at the lower end of the spectrum, the Company launched ’Renotuf’ – tanks manufactured using blow moulding technology (high-speed productivity) which provides `value for money’ unbreakable tanks. These tanks are generating sizeable volumes pan-India. The Company’s underground water storage tanks received good response from the market; it is working aggressively to develop a strong market for this product vertical.

iv) Interiors and readymade doors

Extruded plastic sections, used in household/office interiors, are positioned as an environment-friendly replacement of timber, aluminium among others. Its USP’s namely lowcost maintenance, rust-proof, termite-proof, water-proof, lightweight and easy-to-install positions it as a preferred interior décor material. In recent years, the Company strengthened the visibility of this product by following initiatives:

• Launched and marketed several new sections and shades in line with the market demand

• Launched superior grade quality of panelling material that closely resembles timber which has received heartening customer acceptance

• Launched D-I-Y (do it yourself) products. The Company also arranged several workshops through carpenters to

familiarise them with installation of plastic sections.

The Company also embarked on promoting `readymade doors’ such as factory made doors to build its `readymade’ products portfolio. In 2013-14, the Company launched factory made doors under the `Indiana’ brand which has been well received by the market. Toilet and bathroom doors are also moving very well in the market. The Company is very aggressively pursuing clients to build up the portfolio of doors.

v) Sub-ground structures

Sub-ground structures represent a new focus area for the Company which comprise solutions that provide drainage and water treatment solutions. Growing urbanisation and mushrooming of new towns pan-India has created a huge scarcity of drainage and water treatment solutions estimated at 75-80% - hence these areas are high on the government’s priority list.

The Company’s product basket comprises septic tanks, packaged treatment solutions, biogas holders and manhole structures and covers.

Septic tanks:

Expanding city limits has increased the liquid waste load which can scarcely be managed by outdated and inadequate drainage solutions pan-India. The Company’s developed underground septic tanks for storage of liquid waste (for about 50-500 people) – an extension of its robust water storage tanks business. Its space-saving USP has enabled the Company secure approvals from numerous municipalities and other government agencies. In 2013-14, the Company marketed sizeable volume of these tanks in urban locations.

Packaged waste water treatment solution:

The Company has developed the decentralised packaged waste water treatment solutions in collaboration with Aqua Nishihara (Japan), global leaders in waste water management and treatment. This unique solution reduces BOD levels by 75- 95% depending on the product. In 2013-14, the Company successfully installed a number of these solutions in urban areas. Moreover, the Company created a retail presence for this solution – it designed a solution for managing liquid waste loads between 1,000-6,000 litres which is being marketed by a specialised retail network and has gained significant traction.

Biogas units:

The Company pioneered the portable, prefabricated and moulded biogas plants in India – a unique solution perfectly suiting Indian villages which are bereft of basic utilities (primarily electricity). The excreted waste of cows is converted into energy and the treated waste can be used as a fertiliser in the fields. Additionally, this solution

makes the neighbourhood more sanitised.

The product received clearances from Central and State Governments as it provided energy to rural areas – a top government priority. During the year, the Company marketed good volumes across Gujarat, Maharashtra, Karnataka, Tripura and Kerala.

vi) Environment products

The Company is aggressively promoting a new range of `Euroline’ dustbins and containers with international looks and finish. It received an overwhelming response from several markets particularly in Eastern India. These are expected to gain acceptance across the country as solid waste management programmes are being implemented at an accelerated pace by various municipalities.

B) Custom moulding

As the name suggests, this business segment comprise products customised for specialised applications. As a result, the product development cycle for this business segment is long (especially for customer-specific products), but\ provide long-term revenue visibility and high margins once they receive the seal of approval. The Company has divided its custom moulding business into two important subverticals –products customised to applications and products customised to customer specifications – for focused business development and sustained growth.

i) Products customised to applications

The products customised to application are SMC products, industrial containers, pallets, FRP tanks and insulated boxes.

a) SMC products

This business vertical comprises of products that address the burning power theft issue in the last mile energy

distribution in the Indian power distribution space.

SMC as a material has good electrical insulation properties, no resale value – hence is positioned as the preferred replacement to cast iron, aluminium, sheet metal among others; enclosures big and small area is now being made of SMC.

Over the years, the Company has developed manufacturing expertise in this vertical leveraging multiple technologies namely SMC pultrusion, chop hoop winding, RTM, hand layer, among others.

The Company specialises in tamper-proof enclosures of different sizes for housing various meters and equipment. It has secured product approvals from across India under the Electrical Reform Programme initiated by the Central Government. And successfully starch deals with Electricity Boards in multiple states – Gujarat, Rajasthan, Uttar Pradesh, Karnataka and Andhra Pradesh, to name a few.

In recent years, the Company focused on larger enclosures, distribution boxes, pillar boxes, service connection boxes among others, with special built-in features with considerable success – in 2013-14, the Company sold considerable volumes of these enclosures.

The Company is actively pursuing retail business for electrical products of smaller sizes such as junction boxes, pole connections, smaller meter boxes, sheets, angles and other variety of products made out of the composite. The Company successfully established a retail footprint in major markets and will aggressively pursue to scale its retail business. Moreover, the Company is also working on increasing its business relations with the OE segment by creating products to suit OE applications.

b) Industrial containers and FRP tanks

Industrial containers:

The Company manufactures large industrial tanks to store dyes, colours and chemicals in multiple sizes to suit diverse industrial uses. Rising industrialisation and increasing thrust towards a safe working environment has accelerated the demand for these products. In 2013-14, the Company introduced large sized roto-moulded tanks (1,000 litres and above) especially targeting the chemicals and textiles sector for material storage.

FRP tanks:

The Company introduced high-strength, noncorrosive and non-reactive storage tanks especially to store fuel in dispensing stations – as a replacement to RCC and steel tanks which, over time, get corroded resulting in soil contamination. The Company’s products were approved by HPCL and BPCL for installation at all new dispensing stations pan-India – a huge opportunity over the coming years. The Company successfully marketed this underground storage solution to large malls and commercial complexes for storage purposes (generator fuel, fire fighting, water, sewerage, among others). In 2013-14, the Company successfully completed more than 80 installations; it also secured approvals from IOCL and is negotiating with other oil marketing companies.

c) Plastic pallets

While industrial output has scaled, so has the distance grown between manufacturing and consuming resulting in greater reliance on the hub-and-spoke distribution model for a pan-India presence. This has increased the need for superior material handling systems and increased the demand for pallets.

The Company manufactures light-weight, cost-effective and customised plastic pallets, catering to various industries like pharmaceuticals, automotive, electrical, engineering, textiles, fisheries, logistics and warehousing, among others.

In 2013-14, the Company segregated its product repository into different segments for focused marketing

– its philosophy being the right product,for the right sector and the most-cost efficient manner and sector:

• Pharma pallets: Uniformly moulded pallets, these products have no welds or joints and meet the globally accepted GMP.

• Dynamic pallets: These products are customised for racking and packing.

• Export pallets: These are specially designed light pallets for exports (6 kg compared with 25 kg traditional ones).

• Poly pallets: These pallets are for non-pharma industry applications.

This strategy worked reasonably well as pallet offtake increased significantly.

d) Insulated boxes

The Company has a large repository of insulated boxes which were primarily exported to Australia. Recently, the

Company realigned its marketing strategy. It positioned insulated boxes as part of its cold chain management solution – a sector high on government priority. This allows the Company to promote insulated boxes through governmental programmes.

In the year 2013-14, the Company undertook important initiatives which is expected to create the foundation for

increased product offtake in coming years:

• Received approvals from the Marine Product Export Development Authority which will help market its boxes to all seafood exporters.

• Strengthened the visibility of the boxes in Tier-II and Tier-III towns and rural areas facing acute electricity shortage to store perishable commodities.

• Marketed the boxes to governmental agencies for their vaccination programmes.

• Initiated marketing of boxes to fishermen an India’s eastern coast.

The Company also remodelled the boxes to match specific customer requirements. Besides, it widened its export presence to de-risk against dependence on a single geography. Besides, the insulated box business with large corporate namely global beverage and icecream manufacturers sustained its pace.

ii) Products customised to applications

The products customised to client specifications are largely for off-the-road vehicles and non-automotive applications.

a) Custom moulding for OEMs

The Company develops customised products for some its globally-respected corporates. The Company’s performance was impacted by labour unrest and strikes at guidelines operating units of some customers.

The Company’s product basket includes:

• Fuel tanks and mud guards to M&M, AMW, Ashok Leyland and Escorts – off-the-road vehicles.

• Fuel tanks for generator set manufacturers namely Kirloskar and Cummins.

• Packaging crates for the engineering sector, primarily some of the Tata Group companies.

• Enclosures to leading corporates in the electrical sector.

• Starter panel boxes for pumps and motors for the agricultural industry.

• Fertiliser and pesticide drums.

• Components for the cooling tower sector.

2. TEXTILE BUSINESS

Sintex is a leading continuous fabric processing textile manufacturer in India. The fibre-to-fabric (composite mill) facility at Kalol (Gujarat) houses contemporary technologies and is among the largest fleet of contemporary shuttle-less looms (air jet and rapier machines with dobbies and jacquard) capable of manufacturing fabrics from 80 GSM to 550 GSM. It is one of the most reputed corduroy mills in India.

It manufactures high-end yarn dyed structured fabrics for men’s shirting, yarn dyed corduroy, ultima cotton yarn-based corduroy and fabrics for ladies wear. This business is a value-driven, margin accretive business which contributes only about 10% to the Company’s topline -- its contribution to the Company’s profitability is more pronounced.

The unit weaves some of the finest fabrics for global clients under the BVM brand, focusing on value-addition (high-end structured yarn-dyed fabrics, yarn-dyed corduroy, Ultima cotton yarn-basedcorduroy and sophisticated home furnishings).

The Company’s reputed fashion clients comprise Armani, Diesel, Hugo Boss, Burberry, DKNY, Zara, Mexx, Massimo Dutti, Royal Mint, Canali, Tommy Hilfiger, Versace, Oliver, Max Europe, Banana Republic, Marks & Spencer IKEA, H & M, Ann Taylor, Colour Plus, Pepe Jeans and Nike. Its reputed Indian customers comprise Arrow, ITC Wills Lifestyle, Allen Solly, Zodiac, Van Heusen, Reid & Taylor and Louis Philippe.

Despite the persisting economic slowdown in Europe, a large textile market for the Company, the textile division reported astrong growth – revenue grew by 15.72% from Rs.471.71 crore in 2012-13 to Rs.545.86 crore in 2013-14. This was primarily due to a strong uptick in demand from the domestic market and a significant increase in ready-to-stitch fabrics marketed through its retail distribution network.

THE TEXTILE SECTOR

Textile industry plays a significant role in determining the economic development of a country in terms of not just net foreign exchange earnings but also via direct and indirect employment generation. The industry contributes around 4% to the gross domestic product (GDP), around 11% to the country’s export earnings and nearly 14% to industrial production, besides providing direct employment to over 45 million people. The textile sector is the second largest provider of employment after agriculture in India.

The industry is self-reliant and inclusive as far as the value chain is concerned - right from availability of raw materials to manufacture of garments. On the global front, the industry is the world’s second largest producer of textiles and represents around 4.5% share of the global export turnover.

PERFORMANCE

In 2013-14, the textile industry registered a heartening performance largely facilitated by stable cotton prices at the start of the fiscal, a depreciated Rupee and improved demand from developed nations especially in the US and Europe. The demand from the domestic market also remained buoyant despite the economic slowdown as the disposable incomes in the hands of the Indian consumer increased.

Cotton: Domestic cotton prices remained stable till February 2013 at about `99/kg , well below minimum support prices of ~`110/kgs in some states (especially Andhra Pradesh), which led to support price operations including purchase of ~2.3 million bales in CY13 by governmental agencies. However, increased domestic cotton demand to meet export demand of yarn and continued cotton exports led to gradual increase in cotton prices to ~`140/kg by September 2013.

Yarn: The domestic yarn production was been driven by high import duty on cotton in China, whereby Chinese players resorted to the import of cotton yarn. While the domestic demand remained healthy, higher import duty on cotton in China led to a decline in Indian cotton exports. Moreover, the depreciating rupee strengthened business margins for Indian spinners.

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED JUNE 30, 2014

(Rs. in Millions)

		PARTICULARS	Standalone
			30.06.2014
			(Unaudited)
1		Income from Operations
		(a) Net Sales /Income from Operations (Net of excise duty)	7605.643
		(b) Other Operating Income	18.805
		Total Income from Operations (net)	7624.448
2		Expenses
		(a) Cost of materials consumed	4908.722
		(b) Purchases of Stock-in-Trade	0.000
		(c) Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(6.933)
		(d) Employee benefits expense	277.674
		(e) Depreciation and amortization expense	303.732
		(f) Other expenses	918.431
		Total expenses	64016.626
3		Profit/(Loss) from Operations before other Income, finance costs and Exceptional Items (1-2)	1222.822
4		Other Income	114.724
5		Profit/(Loss) from ordinary activities before finance costs and Exceptional Items (3+4)	1337.546
6		Financial costs	584.200
7		Profit/(Loss) from ordinary activities after finance costs but before Exceptional Items (5-6)	753.346
8		Exceptional Items - Net Foreign Exchange Gain/ (Loss) on Long Term Foreign Currency Monetary Items	(39.976)
9		Profit/(Loss) from Ordinary Activities before tax (7-8)	713.370
10		Tax expense	204.300
11		Net Profit/(Loss) from Ordinary Activities after tax (9-10)	509.070
12		Extraordinary Items (Net of Tax expense)	--
13		Net Profit/(Loss) for the period (11-12)	509.070
14		Share of Profit of associates	--
15		Minority Interest	--
16		Net Profit after taxes, minority interest and share of profit of associates (13+14-15)	509.070
17		Paid up equity share capital (Face value of Re. 1 each)	328.674
18		Reserves excluding Revaluation Reserves	--
19.i		Earning Per Share (not annualised) (Face value of Re. 1 each)
		i) Before Extraordinary Iterms - Basic	1.60
		- Diluted	1.59
	19.ii	i) After Extraordinary Iterms - Basic	1.60
		- Diluted	1.59
	PART II
	A	PARTICULARS OF SHAREHOLDING
	1	Public shareholding
		— Number of shares	185761023
		— Percentage of shareholding	56.19%
	2	Promoters and promoter group Shareholding
		a) Pledged/Encumbered
		— Number of shares	774800000
		— Percentage of shares (as a % of the total	51.64%
		shareholding of promoter and promoter group)
		— Percentage of shares (as a % of the total	22.63%
		share capital of company)
		b) Non-encumbered
		— Number of shares	70035763
		— Percentage of shares (as a % of the total	48.36%
		shareholding of promoter and promoter group)
		— Percentage of shares (as a % of the total	21.18%
		share capital of company)

	Particulars	Quarter Ended 30.06.2014
B	INVESTOR COMPLAINTS (Nos.)
	Pending at the beginning of the quarter	Nil
	Received during the quarter	1
	Disposed of during the quarter	1
	Remaining unresolved at the end of the quarter	Nil

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED JUNE 30, 2014

	PARTICULARS	Standalone
		30.06.2014
		(Unaudited)
1	Segment Revenue
	a) Textile	1552.447
	b) Plastics	6072.001
	c) Infra Structure	--
	d) Un allocated	114.724
	Total	7739.172
	Less: Inter Segment Revenue	--
	Net Sales/ Income from Operations	7739.172
2.	Segment
	(Profit before tax and interest from each segment)
	a) Textile	176.404
	b) Plastics	1180.263
	c) Infra Structure	--
	d) Un allocated	(59.097)
	Total	1297.570
	Less: (i) Interest	584.200
	(ii) Other Unallocable Expenditure net off	--
	(iii) Unallocable Income	--
	Total Profit before Tax	713.370
3.	Capital Employed
	(Segment Assets – Segment Liabilities)
	a) Textile	20777.625
	b) Plastics	25923.532
	c) Infra Structure	--
	d) Un allocated	15904.063
	Total	62605.220

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
a) Amount of claims of certain retrenched employees for re-instatement with back wages	0.000	Amount not ascertained
b) Corporate guarantees given to Banks/ Institutions	50.000	165.600
c) Disputed demand not acknowledged as debt against which the Company has preferred appeal
- Income tax*	59.400	136.400
- Sales Tax/VAT	27.200	26.200
- Service Tax*	40.400	22.800
Amount deposited with the Authority for the above Service Tax Demand Rs. 40.400 Millions (Previous Year – Rs. 22.800 Millions)
* The amount deposited with the authority in respect of above income tax and service tax demands are Rs. 59.400 Millions (previous year Rs. 136.400 Millions) and Rs. 40.400 Millions (previous year Rs. 22.800 Millions), respectively. The dispute of service tax relates to CENVAT eligibility on taxes paid for procurement of services

FIXED ASSETS

Tangible Assets

· Freehold Land

Leasehold Land

Buildings

Plant and Machinery

Furniture, Fixture and Office Equipments

Vehicles

Intangible Assets

· Technical Knowhow

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.61.34
UK Pound	1	Rs.103.44
Euro	1	Rs.81.96

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KAR
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		68

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.