MIRA INFORM REPORT

Report Date :

28.05.2014

IDENTIFICATION DETAILS

Name :	MANALI PETROCHEMICALS LIMITED
Registered Office :	SPIC House 88, Old No.97, Mount Road, Guindy, Chennai – 600032, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	11.06.1986
Com. Reg. No.:	18-013087
Capital Investment / Paid-up Capital :	Rs.860.347 Millions
CIN No.: [Company Identification No.]	L24294TN1986PLC013087
TAN No.: [Tax Deduction & Collection Account No.]	CHEM00306F
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Petrochemical Products like Propylene Oxide (PO), Propylene Glycol (PG) and Polyols (PY).
No. of Employees :	310 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 7700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established company having fine track record. There appears dip in profitability of the company during financial year 2013. However, the rating reflects company’s diversified product portfolio marked by strong financial risk profile and comfortable liquidity position. . 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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A- (Long Term Bank Facilities)
Rating Explanation	Adequate degree of safety and low credit risk.
Date	23.04.2014

Rating Agency Name	CARE
Rating	A1 (Short Term Bank Facilities)
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	23.04.2014

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 31-03-2012.

INFORMATION DECLINED

Management non co-operative (Contact No.: 91-44-25941025)

LOCATIONS

Registered Office :	SPIC House 88, Old No. 97, Mount Road, Guindy, Chennai - 600032, Tamilnadu, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-mail:	companysecretary@manalipetro.com cs@manalipetro.com
Website:	http://www.manalipetro.com
Principal Office and Plant I:	Ponneri High Road, Manali, Chennai – 600068, Tamilnadu, India
Tel. No.:	91-44-25941025/ 25941249/ 25941253/ 25941557/ 25943910/ 25941421
Fax No.:	91-44-25941199
E-Mail :	it@manalipetro.com mkt@manalipetro.com
Plant II:	Sathangadu Village, Manali, Chennai – 6000680, Tamilnadu, India
Tel. No.:	91-44-25941698/ 25941402
Secretarial Department:	Ponneri High Road, Manali, Chennai - 600068, Tamilnadu, India
Tel. No.:	91-44-25943895
E-Mail :	companysecretary@manalipetro.com
Website:	http://www.manalipetro.com
Branches	Located at: · Delhi · Mumbai · Kolkata

DIRECTORS

(AS ON 31.03.2013)

Name :	Mr. Ashwin C Muthiah
Designation :	Chairman
Name :	Mr. T K Arun
Designation :	Director (Nominee of TIDCO)
Name :	Mr. Brig (Retd.) Harish Chandra Chawla
Designation :	Director
Name :	Mr. Kulbir Singh
Designation :	Director
Name :	Mr. Sanjiv Ralph Noronha
Designation :	Director
Name :	Mr. Muthukrishnan Ravi
Designation :	Managing Director

KEY EXECUTIVES

Name :	Mr. S Vasudevan
Designation :	Chief Financial Officer and Company Secretary
Audit Committee :	· Mr. Brig (Retd.) Harish Chandra Chawla · Mr. T K Arun · Mr. Kulbir Singh · Mr. Sanjiv Ralph Noronha

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.12.2013)

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
Bodies Corporate	65856053	38.29
Financial Institutions / Banks	11212500	6.52
Any Others (Specify)	12250	0.01
Directors/Promoters & their Relatives & Friends	12250	0.01
Sub Total	77080803	44.81
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	77080803	44.81
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	185100	0.11
Financial Institutions / Banks	26325	0.02
Foreign Institutional Investors	2260000	1.31
Sub Total	2471425	1.44
(2) Non-Institutions
Bodies Corporate	10069352	5.85
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	59172138	34.40
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	16658728	9.69
Any Others (Specify)	6546783	3.81
Clearing Members	263994	0.15
Hindu Undivided Families	3014430	1.75
Non Resident Indians	3180659	1.85
Overseas Corporate Bodies	85050	0.05
Trusts	2650	0.00
Sub Total	92447001	53.75
Total Public shareholding (B)	94918426	55.19
Total (A)+(B)	171999229	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	171999229	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Petrochemical Products like Propylene Oxide (PO), Propylene Glycol (PG) and Polyols.

Products :

Products Description	Item Code No.
Polyol	39072010
Propylene Glycol	29053200
Isocyanates	29291010

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Propylene Oxide	MT	36000	32149
Propylene Glycol	MT	20000	19224
Polyols # # #	MT	# # # 50000	21461
PGMME	MT	2700	939
DCP and DCIPE	MT	7200	6339
Di – Propylene Glycol	MT	2320	1711
Tri – Propylene Glycol	MT	288	164
DPGMME	MT	460	217

NOTE:

· # From March 2010

· ## From February 2011

· ### Grade Dependent

· Including Captive Consumption.

· As certified by management and relied on by the auditors, this being a technical matter.

GENERAL INFORMATION

No. of Employees :

310 (Approximately)

Bankers :

· State Bank of India

· State Bank of Hyderabad

· State Bank of Patiala

· Indian Bank

· Canara Bank

· Punjab National Bank

· Corporation Bank

· State Bank of Bikaner and Jaipur

· State Bank of Mauritius

Facilities :

Secured Loans	31.03.2013	31.03.2012
	(Rs. In Millions)
Cash Credit from Banks	20.290	11.872
Total	20.290	11.872
NOTE: Cash Credit from banks, which is repayable on demand, is secured by hypothecation of inventories, book debts and other receivables, both present and future, and by way of a second charge on the Company’s immovable properties.

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells, Chennai Chartered Accountants
Address :	ASV N Ramana Tower, 52, Venkatnarayana Road, T. Nagar, Chennai- 600017, Tamilnadu, India
Cost Auditor :
Name :	S Gopalan and Associates
Address :	F-1, Nethrambigai Apartments 15, Vembuli Amman Koil Street, K K Nagar West, Chennai – 600078, Tamilnadu, India
Associates :	· SIDD Life Sciences Private Limited

CAPITAL STRUCTURE

(AS ON 31.03.2013)

Authorised Capital:

No. of Shares	Type	Value	Amount
240000000	Equity Shares	Rs.5/- each	Rs.1200.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
171999229	Equity Shares	Rs.5/- each	Rs.859.996 Millions
	Add: Shares Forfeited		Rs.0.351 Million
	Total		Rs.860.347 Millions

NOTE:

1. There has been no movement in the Share Capital during the year. The Company has only one class of equity shares having a par value of Rs.5 per share. Each holder of the equity shares is entitled to one vote per share. In the event of repayment of Share Capital, the same will be in proportion to the number of equity shares held.

2. For the year ended March 31, 2013, the amount of dividend recognized as distributions to equity shareholders is Rs.0.50 per shares (Previous year: Re.0.60). The Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Details of shares held by shareholders holding more than 5% shares in the Company:

Particulars	31.03.2013
Name of shareholders	No. of Shares	% Holding
SIDD Life Sciences Private Limited	65846053	38.28
Tamilnadu Industrial Development Corporation Limited	11212500	6.52

FINANCIAL DATA

[All figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	860.347
(b) Reserves & Surplus	1064.316
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1)+(2)	1924.663
(3) Non-Current Liabilities
(a) long-term borrowings	0.000
(b) Deferred tax liabilities (Net)	150.247
(c) Other long term liabilities	19.167
(d) long-term provisions	9.487
Total Non-current Liabilities (3)	178.901
(4) Current Liabilities
(a) Short term borrowings	20.290
(b) Trade payables	444.174
(c) Other current liabilities	55.308
(d) Short-term provisions	167.213
Total Current Liabilities (4)	686.985
TOTAL	2790.549
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1025.483
(ii) Intangible Assets	0.000
(iii) Capital work-in-progress	37.440
(iv) Intangible assets under development	0.000
(b) Non-current Investments	41.245
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	153.781
(e) Other Non-current assets	0.000
Total Non-Current Assets	1257.949
(2) Current assets
(a) Current investments	22.406
(b) Inventories	598.389
(c) Trade receivables	391.981
(d) Cash and cash equivalents	64.587
(e) Short-term loans and advances	455.000
(f) Other current assets	0.237
Total Current Assets	1532.600
TOTAL	2790.549

SOURCES OF FUNDS		31.03.2012	31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		860.347	860.347
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		883.373	566.518
4] (Accumulated Losses)		0.000	0.000
NETWORTH		1743.720	1426.865
LOAN FUNDS
1] Secured Loans		11.872	59.217
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		11.872	59.217
DEFERRED TAX LIABILITIES		134.420	131.358
TOTAL		1890.012	1617.440
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		989.897	915.330
Capital work-in-progress		47.155	101.054
INVESTMENT		180.390	339.429
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	654.381	431.299
	Sundry Debtors	383.541	286.893
	Cash & Bank Balances	63.178	46.014
	Other Current Assets	0.000	0.000
	Loans & Advances	386.562	125.506
Total Current Assets		1487.662	889.712
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	503.615
	Other Current Liabilities	88.657	526.742
	Provisions	222.820	101.343
Total Current Liabilities		815.092	628.085
Net Current Assets		672.570	261.627
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		1890.012	1617.440

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	5221.527	5739.630	4519.027
		Other Income	70.776	68.321	47.506
		TOTAL (A)	5292.303	5807.951	4566.533
Less	EXPENSES
		Raw Material and Packing Material Consumed	3597.543	3943.227	3116.184
		Purchase of Traded Goods	190.497	136.505	135.307
		Power and Fuel	0.000	0.000	401.842
		Employee Cost	188.742	248.374	148.128
		Other Expenses	927.698	951.034	385.366
		Increase/ Decrease in Stock	(50.554)	(138.146)	(27.895)
		TOTAL (B)	4853.926	5140.994	4158.932
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		438.377	666.957	407.601
Less	FINANCIAL EXPENSES (D)		21.448	19.229	15.401
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		416.929	647.728	392.200
Less/ Add	DEPRECIATION/ AMORTISATION (F)		63.579	58.840	49.075
	PROFIT BEFORE TAX (E-F) (G)		353.350	588.888	343.125
Less	TAX (H)		80.191	152.091	90.350
	PROFIT AFTER TAX (G-H) (I)		273.159	436.797	252.775
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	557.373	404.549
Less	APPROPRIATIONS
		Proposed Dividend Current Year	NA	NA	86.000
		Tax on Dividend	NA	NA	13.951
	BALANCE CARRIED TO THE B/S		NA	NA	557.373
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Exports	28.263	34.089	25.154
		Freight and Insurances	0.536	1.002	1.076
	TOTAL EARNINGS		28.799	35.091	26.230
	IMPORTS
		Raw Materials, Stores and Consumables	952.419	1184.559	865.797
		Traded Goods	160.705	102.961	103.135
	TOTAL IMPORTS		1113.124	1287.520	968.932
	Earnings Per Share (Rs.)		1.59	2.54	1.47

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	5.16	7.52	5.53
Net Profit Margin (PBT/Sales)	(%)	6.77	10.26	7.59
Return on Total Assets (PBT/Total Assets}	(%)	13.03	23.77	19.00
Return on Investment (ROI) (PBT/Networth)		0.18	0.34	0.24
Debt Equity Ratio (Total Debt/Networth)		0.01	0.01	0.04
Current Ratio (Current Asset/Current Liability)		2.23	1.83	1.42

FINANCIAL ANALYSIS

[All figures are in Rupees Millions]

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)
Sales	4519.027	5739.630	5221.527
		27.010	(9.027)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Sales	4519.027	5739.630	5221.527
Profit	252.775	436.797	273.159
	5.59%	7.61%	5.23%

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	No
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	No
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	No
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

CHENNAI COURT

CASE STATUS INFORMATION SYSTEMS

Case Status:	Pending
Status of:	Civil Misc. Appeal
Case No.:	3216
Year:	2006
Petitioner:	THE COMMR. OF CUSTOMS,
Respondent:	M/S MANALI PETROCHEMICALS
Pet’s Advocates:	M/S P. MAHAADEVAN
Res’s Advocate:	M/S. G. RM. PALANIAPPAN
Category:	NO CATEGORY MENTIONED
	Last Listed on: No Date Mentioned
Case Updated on:	August 5, 2013

------------------------------------------------------------------------------------------------------------------------------

OPERATIONAL HIGHLIGHTS

During the year the operations of the Company were affected due to general economic slow-down aggravated by cut-throat competition from overseas polyol suppliers. On account of these, there was some setback in the operations vis a vis the performance in the last couple of years, resulting in lower production, sales and profits. The net profit for the year was lower by about 37% at Rs.273.100 Millions against Rs.436.800 Millions in the previous year.

Availability of bio mass fuel for the Captive Power Plant (CPP) has become dearer due to spurt in demand for casuarina wood from paper mills and also similar power plants. Even at increased costs supplies are not forthcoming, forcing the Company to operate the CPP at lower loads. The Company is developing alternate fuels for the CPP to ensure operations at optimum load. Also, plans are afoot to purchase power through energy exchanges to meet the short-fall.

Creation of bulk storage facility for Propylene Oxide at Ennore Port is in progress and is expected to be operational during the 2nd quarter of FY 2013-14.

FINANCIAL REVIEW

The year 2012-13 witnessed moderate changes in interest rates. The repo rate increases during the year 2011-12 resulted in steep increase in lending rates of banks and other operators. However, during the year, these were retained at the previous year’s level in the first half and slightly brought down during the second half, to induce economic growth. On the forex front, there was a sharp decline in rupee value by about 6.7%. These resulted in marginal increase in the cost of funds. Also the investible surplus was significantly lower due to decline in operations witnessed during the year and higher capital spending for creation of storage facilities.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company operates in the Polyurethanes (PUs) Market, comprising two sectors: Methylene diisocyanate (MDI) and Toluene Diisocyanate (TDI). The PUs market in India has displayed a robust growth rate over the past 5 years and is highly potential. MDI-based PUs are growing at a faster rate, as these are easier to handle and have a wider application base compared to TDI- based PUs.

Indian Polyurethane industry’s performance during 2007-2012 had been impressive with double-digit growth, but the market has become stagnant in 2013 due to various factors like overall economic slow-down, impact of global economic crisis on Indian manufacturers, inflationary pressures, monsoon failure, etc.

The company also manufactures Propylene Glycol (PG) for pharma, fragrance and industrial applications and continues to perform well in the Pharma and fragrance sectors. The off-take of PG for industrial applications is lower due to availability of alternate cheaper materials.

MARKET SCENARIO

During the year, the Company achieved a turnover of Rs. 5798.700 Millions against Rs.6295.200 Millions in FY 2011-12, lower by about 8% on account of the reasons stated above. It may be recalled that during the previous year (FY 2011-12), the company achieved all time high sales and profits, notwithstanding the overall economic growth being lower as the Indian Polyurethane market performed better. The growth in automotive and appliances segments during the last few years intensified demand for PUs in India. However, during the year, the slow-down stretched to all the segments and hence the Company too suffered on account of sluggish market coupled with dumping of overseas materials by MNCs enjoying zero duty on polyols imported into India. With the global economy witnessing further deterioration, the situation worsened in the 2nd half of the year and in order to retain its market share, the Company had to sell products at very low prices, eroding the margins substantially.

OUTLOOK

The World Trade Organization has scaled down the global trade growth forecast for the year 2013 at 3.30% from the earlier 4.5%; it may be pertinent to note that the global trade growth had fallen to 2% in 2012 from 5.11% in 2011. This trend is expected to persist in the short-term and revival could happen in the medium term.

In order to overcome the setback, the company has taken steps to develop new applications for its products in brake fluid, drilling applications, water proofing, etc., while also taking care of its commitment to environment. The Company is also exploring the possibilities to develop product applications in medical devices.

The Company has also created additional storage facilities for the finished goods at its plants, in addition to the arrangements for bulk storage facilities for imported raw materials in Ennore Port which are expected to provide flexibility in plant operations depending on market conditions.

The company is confident of overcoming the difficulties through modified product mix and foraying into newer markets.

CONTINGENT LIABILITIES

Particular	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
a) Bills discounted	14.496	41.344	30.839
b) Letters of Credit / Guarantees	267.311	307.575	201.629
c) Disputed Excise and Customs demands	6.807	6.807	7.405
d) Disputed Sales Tax demands	5.771	5.771	5.771
e) Disputed Income Tax demands	11.867	11.867	48.802

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31/12/2013

(Rs. In Millions)

Sr. No.	Particular	Quarter Ended		Nine months Ended
		31.12.2013 (Unaudited)	30.09.2013 (Unaudited)	31.12.2013 (Unaudited)
	Net Sales/Income from Operations	1575.651	1416.411	4168.271
	Other operating income	1.439	1.398	4.065
	Total Income	1577.090	1417.809	4172.336
	Expenditure
	Cost of materials consumed	1041.668	894.700	2676.382
	Purchase of stock in trade	56.810	58.242	161.999
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(64.487)	2.385	(64.656)
	Employee benefits expenses	46.128	46.945	138.251
	Power and Fuel	201.969	183.511	554.981
	Depreciation and amortization expenses	16.750	16.080	48.816
	Other expenses	168.215	119.986	401.337
	Total Expenses	1467.053	1321.849	3917.110
	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	110.037	95.960	255.226
	Other Income	17.533	17.303	49.825
	Profit from Ordinary Activities before Finance Cost and Exceptional Items (3+4)	127.570	113.263	305.051
	Finance Cost	4.442	5.425	15.873
	Net Profit / (loss) from ordinary activities before tax (5-6)	123.128	107.838	289.178
	Tax Expense	27.947	24.471	65.628
	Tax Expense - Prior Year	2.907	--	2.907
	Net Profit after taxes (7 - 8)	92.274	83.367	220.643
	Paid-up equity share capital (Face value of Rs.5/- each)	860.347	860.347	860.347
	Reserves Excluding Revaluation Reserve as per Balance Sheet of previous accounting Year
	Earning Per Share before extraordinary items
	(a) Basic and (b) Diluted (not annualised)	0.54	0.48	1.28
	Public Shareholding
	-Number of Shares	94918426	94918426	94918426
	- Percentage of Shareholding	55.16%	55.16%	55.16%
	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	--	--	--
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	--	--	--
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	--	--	--
	b) Non Encumbered
	- Number of Shares	77080803	77080803	77080803
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100.00%	100.00%	100.00%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	44.81%	44.81%	44.81%

INVESTOR COMPLAINTS FOR THE 3 MONTHS ENDED 31/12/2013

Pending at the beginning of the quarter - 4; Received during the quarter - 16; Disposed off during the quarter - 20; Remaining unresolved at the end of the quarter - Nil

Note:

The above results were reviewed by the Audit Committee and approved at the Meeting of the Board of Directors held on February 12, 2014 and have been subjected to limited review by the Statutory Auditors of the Company.

Rates and Taxes, under other expenses, include an estimated liability of Rs.3.400 millions towards demands for service tax relating to prior years.

Income tax of Rs.2.900 millions relating to the year ended 31st March 2010 has been provided for during the quarter, interest on which amounting to Rs.2.350 millions was provided for in the quarter ended 30th September 2013.

The Company has received a demand for Rs 167.700 millions towards lease rentals for factory land relating to prior years which the company proposes to contest.

The Company operates only in one business segment, viz., Petrochemicals.

Previous period figures have been regrouped / reclassified, wherever necessary to correspond with current period figures

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80047338	30/12/1996	663,868,000.00	DEPARTMENT OF COMMERCIAL TAXES	GOVT. OF TAMILNADU, CHENNAI, TAMILNADU - 600006, INDIA	-
2	90297555	15/11/2006 *	225,600,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, NO.86 RAJAJI SALAI, CHENNAI, TAMILNADU - 600001, INDIA	-
3	80053563	07/04/1995 *	88,300,000.00	CANARA BANK	TEYNAMPET BRANCH, TEYNAMPET, CHENNAI, TAMILNADU - 600018, INDIA	-

* Date of charge modification

FIXED ASSETS:

Tangible Assets

· Land

• Development on lease-hold land
• Plant and Machinery
• Building
• Furniture and Fixture
• Office Equipments
• Computers
• Vehicles

Intangible Assets

· 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.59.06
UK Pound	1	Rs. 99.61
Euro	1	Rs. 80.61

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		52

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.