MIRA INFORM REPORT

Report Date :

04.07.2014

IDENTIFICATION DETAILS

Name :	SUMEET INDUSTRIES LIMITED (w.e.f. 01.09.1993)
Formerly Known As :	SUMEET SYNTHETICS LIMITED (w.e.f. 26.02.1992) SUMEET SYNTHETICS PRIVATE LIMITED
Registered Office :	504, Trividh Chambers, Opposite Fire Station, Ring Road, Surat – 395002, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	01.08.1988
Com. Reg. No.:	04-11049
Capital Investment / Paid-up Capital :	Rs.682.897 Millions
CIN No.: [Company Identification No.]	L45200GJ1988PLC011049
TAN No.: [Tax Deduction & Collection Account No.]	SRTS00011E
PAN No.: [Permanent Account No.]	AAECS2256B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Polyester Chips, Polyester Filament Yarn, Polyester POY/ FDY, Polypropylene Yarn and Menthol Products.
No. of Employees :	Information declined by management.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. General financial position of the company seems to be decent. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES:

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

INDIAN ECONOMIC OVERVIEW

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two. While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs.2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loans: BBB-
Rating Explanation	Have moderate degree at safety and carry moderate credit risk.
Date	October, 2013

Rating Agency Name	ICRA
Rating	Non Fund Based Facilities: A3
Rating Explanation	Have moderate degree of safety and carry higher credit risk.
Date	October, 2013

RBI DEFAILTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAILTERS’ 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 DECLINED

MANAGEMENT NON CO-OPERATIVE.

Contact No.: 91-261-2328902

LOCATIONS

Registered Office :	504, Trividh Chambers, Opposite Fire Station, Ring Road, Surat – 395002, Gujarat, India
Tel. No.:	91-261-2328902
Fax No.:	91-261-2334189/ 2310196
E-Mail :	sumeetindus@yahoo.com info@sumeetindustries.com sumeet@sumeetindustries.com silshare@yahoo.com sumeetindustries@drdc.net recruitment@sumeetindustries.com sumeetplant@yahoo.co.in sumeetind@drdcs.net
Website :	http://www.sumeetindustries.com
Factory :	Block No. 289, 291, 292, Village : Karanj, Taluka : Mandvi, District : Surat – 394110, Gujarat, India
Tel. No.:	91-2621-234923
Branch Office :	901, Vishwa Deep Building, District Centre, Janakpuri, New Delhi – 110058, India
Tel. No.:	91-11-25554808, 25554773

DIRECTORS

(AS ON 31.03.2013)

Name :	Mr. Shankarlal Somani
Designation :	Chairman Cum Managing Director
Name :	Mr. Sumeet Kumar Somani
Designation :	Director
Name :	Mr. Bhagchand Chordia
Designation :	Director
Name :	Mr. Dinesh Sharan Khare
Designation :	Director
Name :	Mr. Devi Prasad Saboo
Designation :	Director
Name :	Mr. Vinod Kumar Ladia
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Anil Kumar Jain
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2014)

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	9530027	16.42
Any Others (Specify)	17700703	30.50
Group Companies	17700703	30.50
Sub Total	27230730	46.92
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	27230730	46.92
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	450	0.00
Sub Total	450	0.00
(2) Non-Institutions
Bodies Corporate	15322620	26.40
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	6857398	11.82
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	3087011	5.32
Any Others (Specify)	5541529	9.55
Clearing Members	135215	0.23
Non Resident Indians	172149	0.30
Directors & their Relatives & Friends	5234165	9.02
Sub Total	30808558	53.08
Total Public shareholding (B)	30809008	53.08
Total (A)+(B)	58039738	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)	58039738	100.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl. No.	Name of the Shareholder	Details of Shares held		Encumbered shares (*)
		No. of Shares held	As a % of grand total (A)+(B)+(C)	No	As a percentage	As a % of grand total (A)+(B)+(C) of sub-clause (I)(a)
1	Shankarlal Sitaram Somani	37,06,183	6.39	3150000	84.99	5.43
2	Gangadevi Shankarlal Somani	12,00,000	2.07	920000	76.67	1.59
3	Sushil Shankarlal Somani	13,10,844	2.26	500000	38.14	0.86
4	Sumeet Shankarlal Somani	11,44,000	1.97	700000	61.19	1.21
5	Rajkumar Sitaram Somani	3,60,000	0.62	0	0.00	0.00
6	Sumandevi Somani	5,50,000	0.95	0	0.00	0.00
7	Neelam Sushil Somani	5,00,000	0.86	0	0.00	0.00
8	Manisha Sumeet Somani	5,00,000	0.86	0	0.00	0.00
9	Rakesh Rajkumar Somani	1,38,023	0.24	0	0.00	0.00
10	Ritesh Rajkumar Somani	1,20,977	0.21	0	0.00	0.00
11	Somani Overseas Pvt Ltd	86,41,928	14.89	2000000	23.14	3.45
12	Sumeet Menthol Pvt Ltd	25,30,000	4.36	2500000	98.81	4.31
13	Sitaram Prints Pvt Ltd	35,84,775	6.18	0	0.00	0.00
14	Betex India Ltd	5,84,000	1.01	0	0.00	0.00
15	National Poly Yarn Pvt Ltd	23,20,000	4.00	2300000	99.14	3.96
16	Ambaji Syntex Pvt Ltd	40,000	0.07	0	0.00	0.00
	Total	2,72,30,730	46.92	12070000	44.32	20.80

(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	IFIN Securities Finance Ltd	4962000	8.55
2	Dhanvirdhi Financial Consultans Private Limited	2580443	4.45
3	Shardadevi Somani	1221000	2.10
4	Arihant Capital Mkt Limited	1255633	2.16
5	Bajranglal Sitaram Somani	1351087	2.33
6	Religare Finvest Limited	1031650	1.78
7	Urmiladevi Somani	940000	1.62
8	Amit Bajranglal Somani	864341	1.49
	Total	14206154	24.48

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the company

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as % of Total No. of Shares
1	IFIN Securities Finance Limited	4962000	8.55
	Total	4962000	8.55

BUSINESS DETAILS

Line of Business :

Manufacturer of Polyester Chips, Polyester Filament Yarn, Polyester POY/ FDY, Polypropylene Yarn and Menthol Products.

Products :

Products Description	Item Code No.
P.P. and Poly POY/ Texturised/ Twisted Yarn	54023900
Menthol Product	33012590

GENERAL INFORMATION

No. of Employees :

Information declined by management.

Bankers :

· Bank of Baroda

· Bank of India

· IDBI Bank Limited

· Union Bank of India

Facilities :

Secured Loans	31.03.2013	31.03.2012
	(Rs. In Millions)
Long Term Borrowing
Term Loans
From Banks	2158.373	2160.560
From Others	14.281	17.167
Loans and Advances from Companies	194.916	77.780
Short Term Borrowings
Cash Credit Facilities	699.922	120.263
Buyers Credit	860.211	1444.945
Inland LC (Union Bank)	27.058	0.000
Term Loan (GBPP)	1.856	0.000
Inland (IDBI)	79.715	0.000
Total	4036.332	3820.715

Banking Relations :	--
Auditors :
Name :	Pradeep Singhi and Associates Chartered Accountants
Address :	Surat, Gujarat, India
Internal Auditor :
Name :	RRA and Company Chartered Accountants
Address :	Surat, Gujarat, India

CAPITAL STRUCTURE

(AS ON 30.09.2013)

Authorised Capital : Rs.1000.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.780.397 Millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
90000000	Equity Shares	Rs.10/- each	Rs.900.000 millions
10000000	6% Non-Convertible Redeemable Preference shares	Rs.10/- each	Rs.100.000 millions
	Total		Rs.1000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
58289738	Equity Shares (Out of which 7605930 Shares are issued for consideration other than Cash)	Rs.10/- each	Rs.582.897 millions
10000000	6% Non-Convertible Redeemable Preference shares	Rs.10/- each	Rs.100.000 millions
	Total		Rs.682.897 millions

A. Reconciliation of the Number of shares at the beginning and end of the reporting period:

Autorised Share Capital	31.03.2013
Previous Year	90,000,000
Increase by	10,000,000
Current Year	100,000,000
Number of Shares at the Beginning of the year	68.290
Add: Addition during the year	0.000
Number of shares at the end of the year	68.290

B. Shares held by each shareholders holding more than 5% shares, specifying the number of shares held:

Name	No. of shares	% of Holding
Somani Overseas Private Limited	7455084	12.79
Sitaram Prints Private Limited	3338075	5.73
Shankarlal Sitaram Somani	3706183	6.36
Raghuvir Texturisers private Limited	5580362	9.57

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	682.897	682.897	499.952
(b) Reserves & Surplus	1257.423	1092.811	568.460
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	87.000	87.000	87.000
Total Shareholders’ Funds (1)+(2)	2027.320	1862.708	1155.412
(3) Non-Current Liabilities
(a) long-term borrowings	2368.672	2264.034	1165.409
(b) Deferred tax liabilities (Net)	327.726	233.256	149.160
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	2696.398	2497.290	1314.569
(4) Current Liabilities
(a) Short term borrowings	1668.762	1565.208	1259.266
(b) Trade payables	1239.568	199.145	97.801
(c) Other current liabilities	116.639	56.988	68.978
(d) Short-term provisions	68.225	78.934	136.588
Total Current Liabilities (4)	3093.194	1900.275	1562.633
TOTAL	7816.912	6260.273	4032.614
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3836.605	1905.677	1887.760
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	101.611	1731.889	26.564
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	7.796	5.914	12.673
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	39.531	29.243	25.017
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	3985.543	3672.723	1952.014
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1819.886	1258.672	915.520
(c) Trade receivables	1159.448	669.481	641.338
(d) Cash and cash equivalents	239.443	58.570	101.336
(e) Short-term loans and advances	266.118	158.960	133.030
(f) Other current assets	346.474	441.867	289.376
Total Current Assets	3831.369	2587.550	2080.600
TOTAL	7816.912	6260.273	4032.614

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from Operations	11593.378	8244.764	8184.712
		Other Income	(113.036)	(54.196)	96.356
		TOTAL (A)	11480.342	8190.568	8281.068
Less	EXPENSES
		Cost of Materials Consumed	8181.199	5490.589	5325.519
		Purchases of stock in Trade	2945.113	1973.521	2122.635
		Changes in Inventories of Finished Goods, Work-inprogre4ss and stock in Trade	(590.796)	(147.656)	24.311
		Employee Benefits Expenses	106.954	74.152	58.457
		Other Expenses	131.134	218.171	136.207
		TOTAL (B)	10773.604	7608.777	7667.129
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		706.738	581.791	613.939
Less	FINANCIAL EXPENSES (D)		217.187	108.118	83.214
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		489.551	473.673	530.725
Less/ Add	DEPRECIATION/ AMORTISATION (F)		198.986	120.175	117.760
	PROFIT BEFORE TAX (E-F) (G)		290.565	353.498	412.965
Less	TAX (H)		486.661	602.051	68.540
	PROFIT AFTER TAX (G-H) (I)		196.096	248.553	344.425
	TAXATION OF PREVIOUS YEAR		4.502	7.353	2.851
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		--	--	154.111
Less	APPROPRIATIONS
		6% Dividend and Distribution Tax	0.000	0.000	6.997
		Provision for dividend and dividend Dist. Tax	26.982	0.000	46.638
		Short provision for dividend and dividend Dist. Tax	0.000	20.817	0.000
	BALANCE CARRIED TO THE B/S		164.612	220.383	442.050
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1219.222	90.864	255.350
	TOTAL EARNINGS		1219.222	90.864	255.350
	IMPORTS
		Raw Materials	2862.880	3940.450	32355.308
		Stores & Spares	3.418	3.495	7.667
		Capital Goods	39.268	1095.722	9.263
		Others	92.205	0.000	0.000
	TOTAL IMPORTS		2997.771	5039.667	32372.238
	Earnings Per Share (Rs.)		3.29	4.14	8.37

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.71	3.03	4.16
Net Profit Margin (PBT/Sales)	(%)	2.51	4.29	5.05
Return on Total Assets (PBT/Total Assets}	(%)	3.77	7.82	10.34
Return on Investment (ROI) (PBT/Networth)		0.14	0.19	0.36
Debt Equity Ratio (Total Debt/Networth)		1.99	2.06	2.10
Current Ratio (Current Asset/Current Liability)		1.24	1.36	1.33

FINANCIAL ANALYSIS

[All figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	499.952	682.897	682.897
Reserves & Surplus	568.460	1092.811	1257.423
Share Application money pending allotment	87.000	87.000	87.000
Net worth	1155.412	1862.708	2027.320
long-term borrowings	1165.409	2264.034	2368.672
Short term borrowings	1259.266	1565.208	1668.762
Total borrowings	2424.675	3829.242	4037.434
Debt/Equity ratio	2.099	2.056	1.992

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from Operations	8,184.712	8,244.764	11,593.378
		0.734	40.615

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from Operations	8,184.712	8,244.764	11,593.378
Profit	344.425	248.553	196.096
	4.21%	3.01%	1.69%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITY OF LONG TERM BORROWINGS DETAIL: NOT AVAILABLE

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	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

Particulars	31.03.2013	31.03.2012
	(Rs. In Millions)
Long Term Borrowing
Loans From Directors	1.102	8.527
Total	1.102	8.527

OPERATIONS

The company has posted a satisfactory performance for the year. The company has produced 91936.934 Tons of Pet Chips / Polyester / Polypropylene Multifilament Yarn and dispatched 86875.80 Tons of Pet Chips / Polyester / Polypropylene Multifilament Yarn.

Income from operation of the company has increased from Rs.8244.800 Millions to Rs.11593.400 Millions. EBIDTA has been increased from Rs.581.800 Millions to Rs.706.700 Millions and Net profit after Tax has been decreased from Rs.241.200 Millions to Rs.191.600 Millions in comparison to last year.

NEW PROJECT

In the current financial year, the company has successfully commissioned Wastage Recycling Plant with 5400 TPA capacity. Under this plant company is producing chips from polyester wastage yarns. The commercial production of the same has been commenced in the month of June, 2013.

The company has also set up 66 KV Sub- stations at its plant and taking supply of power from DGVCL. The company is sourcing power from open access purchase through grid under open access regulation and thereby reducing its power cost substantially in comparison to power generated from Natural Gas.

EXPORTS

The company has been exploring all the possibilities for exporting its products. During the year under review, your company has exported products worth of Rs.1222.400 Millions in comparison to Rs.90.800 Millions in the last year.

At present company is exporting to South Africa, Bangladesh, Egypt, Saudi Arabia, China, Peru, Argentina, Portugal, Indonesia, Iran, U.S.A and Singapore etc. Exploring export markets has been a key area of focus for the company. The company expects more growth in the overall export sales in the current year also.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW OF THE COMPANY

WORLD ECONOMY

The financial year 2012-13 saw underperforming economies, sluggish growth and emergency rescue efforts by most governments across the world. As per IMF forecast Global economy is likely to show a growth of 3.3% during 2013 as compared to growth of 3.2% during 2012. The sovereign – debt crisis in Europe also impacting global economic growth. Japan’s economy has shown signs of improvement on account of monetary and fiscal stimulus undertaken. The emerging economies were also impacted by global headwinds, with China registering economic slowdown, along with other BRICS nations. In the year 2012-13, China grew by only 7.8%, while India finished the race a close second at 5%.

INDIAN ECONOMY

India’s economy has also been facing socio-economic challenges for the past two years, impacted by a combination of international and domestic factors. Indian economy faced many concerns such as moderation in GDP growth, high inflation, high fiscal deficit and widening Current Account Deficit. According to the Central Statistics Office’s advance estimate of GDP growth, Indian economy is expected to grow at 5% during the year 2012-13 as compared to a growth of 6.21% registered during 2011-12.

The Economic Survey 2012-13 has pegged the country's economic growth forecast at 6.1-6.7% in the coming financial year. The survey predicts that the global economy is also likely to recover in 2013 and various government measures will help in improving the Indian economy's outlook for 2013-14. Government initiative on increasing FDI limits on investments across major sectors will significantly improve capital inflow in Indian Economy. The Government of India is also taking various initiatives to keep the fiscal deficit within 5.2%.*

High inflation is another problem that has haunted the economy for last two financial years. In F.Y. 2013, inflation measured by Wholesale Price Index (WPI) remained stubbornly high at around 8% limiting the scope for reduction in interest rate. Similarly, inflation measured by Consumer Price Index (CPI) also remained mostly above 10% in F.Y. 2013. Unabated high price level throughout the financial year dampened overall demand condition in the economy.

*Economic Survey Report

WORLD TEXTILE INDUSTRY SCENARIO

The global textile and clothing trade marginally declined from USD 706 Billion in 2011 to USD 700 Billion in 2012. China’s export in 2012 grew by 3% to an estimated USD 260 Billion and represented 37.7% of the global textile and clothing trade. India’s export is estimated to decline to USD 31 Billion in 2012.

The production volume in the world textile industry in 2012 rose by 1.9% to 88.5 Million tonnes. This includes increase in manmade fibre segments while natural fibres were down by 4.3% to 32.5 Million tonnes. Manmade fibres went up by 6.0% to 56.0 Million tonnes.*

*The Fiber year, 2013

OVERALL VIEW OF THE COMPANY

In the previous year, while analyzing and discussing the performance of the Company and the Industry in general, the Management anticipated certain threats and challenges like, over capacity in Polyester POY, imports of Polyester Yarn / Fabrics, increasing Fuel Oil and Natural Gas prices, depreciation of rupee against dollar etc. In the year under review, as expected, it happened and remained throughout the year and impacted the performance of the Company. Overall, the performance was satisfactory due to efficient use of raw materials, overhead cost cuttings, better management of working capital and energy conservation.

During the year the company has successfully commissioned Polyester Filament yarn (POY and FDY) a direct spinning unit through MEG and PTA, thereby total capacity of the spinning has been increased from 53000 TPA to 82800 TPA. The commercial production of the same has been commenced since month of May, 2012 A host of new products have been introduced through close co-operation between Quality Control (R & D), Production and Marketing departments.

In the current financial year, the company is sourcing power through open access purchase under open access regulation has helped to substantially reduce our power cost by restricting the use of expensive natural gas based gen-set power plants.

The company’s manufacturing units have a locational advantages being situated in the Surat area. Its location gives it proximity to both raw material suppliers as well as end users.

CONTINGENT LIABILITIES

A. Letter of Credit Outstating (92,19,840 yen and 12,300$ USD) as on 31.03.2013

B. Excise duty of Rs.0.352 Million was demanded by the department, which has been paid but for which appeal has been filed.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation /Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10454663	17/10/2013	610,000,000.00	BANK OF BARODA	UDHNA INDUSTRIAL ESTATE BRANCH,, UDHNA UDYOG NAGAR SAHAKARI SANGH, SURAT, GUJARAT - 394210, INDIA	B87387890
2	10453328	27/09/2013	305,300,000.00	STATE BANK OF INDIA	MID CORPORATE BRANCH, TRADE HOUSE,, RING ROAD, SURAT, GUJARAT - 395002, INDIA	B86775962
3	10445381	03/07/2013	30,000,000.00	UNION BANK OF INDIA	3/2239, PIPARDI SHERI, SALABATPURA MAIN ROAD, SURAT, GUJARAT - 395003, INDIA	B83201665
4	10435467	02/07/2013	40,000,000.00	BANK OF BARODA	UDHNA INDUSTRIAL ESTATE BRANCH, UDHNA UDYOG NAGAR SAHAKARI SANGH, UDHNA, SURAT, GUJARAT - 395410, INDIA	B79028726
5	10304812	17/08/2011	682,393,363.00	KBC BANK DEUTSCHLAND AG	WACHTSTRASSE 16, BREMEN, - 28195, GERMANY	B19872555
6	10151765	08/04/2009	3,340,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	A60385036
7	10150799	26/03/2009	5,728,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	A59828921
8	10140453	22/12/2008	1,632,000,000.00	BANK OF BARODA	UDHNA INDUSTRIAL ESTATE BRANCH, UDHNA UDHYOG NAGAR SAHKARI SANGH, UDHNA,, SURAT, GUJARAT - 394210, INDIA	A53520201
9	90102753	02/02/2013 *	4,866,300,000.00	BANK OF BARODA AND 3 OTHERS	UDHNA INDUSTRIAL ESTATE BRANCH, UDHNA UDYOG NAGAR SAHAKARI SANGH, SURAT, GUJARAT - 395410, INDIA	B67874222
10	90100088	08/08/2005	416,000,000.00	BANK OF BARODA	UDHAN BRANCH, SURAT, GUJARAT, INDIA	-
11	90096902	09/09/2005 *	555,100,000.00	BANK OF BARODA	UDIMA BRANCH, SURAT, GUJARAT, INDIA	-
12	90099827	02/02/2013 *	4,866,300,000.00	BANK OF BARODA AND 3 OTHERS	UDHNA INDUSTRIAL ESTATE BRANCH, UDHNA UDYOG NAGAR SAHAKARI SANGH, SURAT, GUJARAT - 395410, INDIA	B67874784
13	90099734	06/11/2003	35,000,000.00	BANK OF BARODA	UDIMA BRANCH, SURAT, GUJARAT, INDIA	-
14	90099492	21/03/2002	10,000,000.00	BANK OF BARODA	UDHAN IND. ESTATE BRANCH, SURAT, GUJARAT, INDIA	-
15	90096475	09/09/2005 *	309,037,000.00	BANK OF BARODA	UDIMA BRANCH, SURAT, GUJARAT, INDIA	-
16	90102630	30/07/1997	309,037,000.00	BANK OF BARODA	UDHAN BRANCH, SURAT, GUJARAT, INDIA	-
17	90098618	13/06/1997	97,500,000.00	BANK OF BARODA	CENTRAL RAOD NO. 10 UDHNA, UDHYOGNAGAR SAHKARI S ANGH, SURAT, GUJARAT, INDIA	-
18	90098533	26/12/1996	37,500,000.00	BANK OF BARODA	UDHAN IND. ESTATE BRANCH, SURAT, GUJARAT - 394210, INDIA	-
19	90098183	21/03/2002 *	47,500,000.00	BANK OF BARODA	UDHAN IND. ESTATE BRANCH, SURAT, GUJARAT, INDIA	-

* Date of charge modification

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture, Fixture and Equipments

· Vehicle

NEWS:

SUMEET INDUSTRIES: UPDATES ON REDUCTION OF CAPITAL

Sumeet Industries Limited has informed BSE that The Petition filed by the company U/s. 78, 100 and 101 of the Companies Act, 1956 before the Hon’ble High Court of Gujarat on dated January 25, 2008 for seeking reduction of capital by Rs.7.500 Millions (i.e. 25,00,000/- share capital and Rs.5.000 Millions share premium) allotted to M/s. Vishvas Infrastructure Limited has been confirmed by an order dated November 19, 2013 of the Hon’ble High Court of Gujarat, Ahmedabad passed in petition number 30 of 2008 and the said order has been registered with Registrar of Companies, Gujarat on dated January 09, 2014.Pursuant to the said High Court order, the existing issued, subscribed and paid up Equity Capital of the Company shall be reduced from Rs.582.897 Millions divided in to 5,82,89,738 Equity Shares of Rs.10/- (Rupees Ten only) each fully paid up to Rs.580.397 Millions divided in to 5,80,39,738 Equity Shares of Rs.10/- (Rupees Ten only) each fully paid up and that such reduction be effected by canceling 2,50,000 equity shares of Rs.10/- each amounting to Rs.2.500 Millions. Consequent to such reduction, the equity share capital of the Company will be Rs.580.397 Millions divided in to 5,80,39,738 Equity Shares of Rs.10/- (Rupees Ten only) each.

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.59.72
UK Pound	1	Rs.102.45
Euro	1	Rs.81.54

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUM
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.