MIRA INFORM REPORT

Report No. :	328864
Report Date :	23.06.2015

IDENTIFICATION DETAILS

Name :	SINTEX INDUSTRIES LIMITED (w.e.f.1995)
Formerly Known As :	THE BHARAT VIJAY MILLS LIMITED
Registered Office :	Kalol - 382721, Gujarat
Tel No. :	91-2764-223731
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	01.06.1931
Com. Reg. No.:	04-000454
Capital Investment / Paid-up Capital :	Rs. 424.438 Million
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 :

Aa (74)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established company having fine track record. Rating takes into consideration company’s leadership position in prefabricated structures (prefabs) and water tank business in the domestic market, well-established distribution network with strong brand name and established relationship with its diversified clientele. Rating also takes into consideration company’s strong business risk profile backed by healthy financial base and adequate profitability margins of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. In view of strong business backed by healthy financial base, 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = AA+
Rating Explanation	High degree of safety and very low credit risk.
Date	05.06.2015

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	05.06.2015

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 31-03-2013.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No. 91-2764-253000)

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 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 31.03.2015

Category of Shareholders	No. of Shares	% of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2869830	0.67
Bodies Corporate	141965933	33.30
Sub Total	144835763	33.97
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	144835763	33.97
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	7283514	1.71
Financial Institutions / Banks	1992214	0.47
Insurance Companies	50000	0.01
Foreign Institutional Investors	100981422	28.21
Sub Total	110307150	30.40
(2) Non-Institutions
Bodies Corporate	19758634	4.65
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	66297669	16.28
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	10217545	2.40
Any Others (Specify)	50522749	12.30
Non Resident Indians	4205944	0.99
Trusts	39070	0.46
Clearing Members	2474030	0.58
Foreign Corporate Bodies	43803705	10.27
Sub Total	146796597	35.63
Total Public shareholding (B)	257103747	66.03
Total (A)+(B)	401939510	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)	401939510	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”

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

3703 (Approximately)

Bankers :

· State Bank of India

· Bank of Baroda

· IDBI Bank Limited

Facilities :

SECURED LOANS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
LONG-TERM BORROWINGS
Debentures		6000.000
Term loans
From banks		12703.600
From Financial Institutions		1443.000
SHORT TERM BORROWINGS
Loans repayable on demand From banks		3591.800
Total	NA	23738.400

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Ahmedabad, Gujarat, India
Associate (As on 31.03.2014) :	Zillion Infra Projects Private Limited
Subsidiaries (As on 31.03.2014) :	· 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 (As on 31.03.2014) :	· Som Shiva (Impex) Limited · Atik Land Developers Private Limited · Sintex International Limited · Prominent Plastic Limited · BVM Finance Private Limited

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs. 424.438 Million

As on 31.03.2014

Authorised Capital :

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

Issued Capital :

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

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
313109980	Equity Shares	Re. 1/- each	Rs.313.100 Million
	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 Million
	Total		Rs. 311.200 Million

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 Million	313.100	--	--	313.100
Year ended 31st March 2013
- Number of shares	272990866	26519114	13600000	313109980
- Amount in Million	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 Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	424.438	311.200	311.200
(b) Reserves & Surplus	41908.040	29827.000	27399.100
(c) Money received against share warrants	0.000	283.100	283.100
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	42332.478	30421.300	27993.400
(3) Non-Current Liabilities
(a) long-term borrowings	26834.104	28560.600	20789.400
(b) Deferred tax liabilities (Net)	4473.413	3114.300	2710.300
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	164.909	140.900	134.900
Total Non-current Liabilities (3)	31472.426	31815.800	23634.600
(4) Current Liabilities
(a) Short term borrowings	7310.609	5499.500	9320.600
(b) Trade payables	3771.514	3758.000	2611.900
(c) Other current liabilities	6789.428	2029.500	2002.200
(d) Short-term provisions	418.473	291.700	285.500
Total Current Liabilities (4)	18290.024	11578.700	14220.200
TOTAL	92094.928	73815.800	65848.200
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	42589.520	26642.300	21067.600
(ii) Intangible Assets	0.000	12.600	2.800
(iii) Capital work-in-progress	0.000	845.000	1247.400
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	10117.725	10136.600	9417.100
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	17254.382	18000.300	8776.100
(e) Other Non-current assets	442.617	466.600	234.400
Total Non-Current Assets	70404.244	56103.400	40745.400
(2) Current assets
(a) Current investments	118.326	155.800	248.400
(b) Inventories	1625.210	1682.800	2009.700
(c) Trade receivables	14466.307	12996.400	12366.300
(d) Cash and cash equivalents	3365.091	1027.000	7812.900
(e) Short-term loans and advances	1004.563	871.800	2319.700
(f) Other current assets	1111.187	978.600	345.800
Total Current Assets	21690.684	17712.400	25102.800
TOTAL	92094.928	73815.800	65848.200

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Income	40178.200	32331.200	29692.600
		Other Income	1004.280	1138.700	822.100
		TOTAL (A)	41182.480	33469.900	30514.700
Less	EXPENSES
		Cost of Materials Consumed	26188.440	20565.200	19611.900
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	36.379	233.700	(288.500)
		Employees benefits expense	1276.803	1129.900	1064.000
		Other expenses	3561.802	3243.400	3422.600
		TOTAL (B)	31063.424	25172.200	23810.000
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		10119.056	8297.700	6704.700
Less	FINANCIAL EXPENSES (D)		2285.329	2373.800	1444.900
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7833.727	5923.900	5259.800
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1448.362	1383.300	1231.800
	EXCEPTIONAL ITEMS		(217.891)	(160.600)	(903.500)
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		6167.474	4380.000	3124.500
Less	TAX (H)		1592.233	1029.400	432.600
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		4575.241	3350.600	2691.900
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		17319.000	14907.500	13078.100
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	350.000	275.000
		Debenture redemption reserve	NA	332.700	332.700
		Proposed dividend on equity shares	NA	219.200	219.200
		Tax on dividend	NA	37.200	35.600
	BALANCE CARRIED TO THE B/S		21894.241	17319.000	14907.500
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Direct Export	NA	385.000	365.500
	TOTAL EARNINGS		NA	385.000	365.500
	IMPORTS
		Raw Materials	NA	134.900	30.500
		Components and Spare Parts (Repairs)	NA	26.500	64.500
		Capital Goods	NA	134.900	42.000
	TOTAL IMPORTS		NA	296.300	137.000
	Earnings / (Loss) Per Share (Rs.)
	Basic		12.48	10.77	9.46
	Diluted		11.64	10.77	9.44

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	1079.100	853.800
Cash generated from operations	NA	8498.300	4703.800

QUARTLY RESULTS

Particulars (Rs. In Million)	Jun 2014 1^ST Quarter	Sep 2014 2^nd Quarter	Dec 2014 3^rd Quarter
Audited / Unaudited	unaudited	unaudited	unaudited
Net Sales	7624.500	9981.400	9997.700
Total Expenditure	6097.900	7800.600	7671.500
PBIDT (Excl OI)	1526.600	2180.900	2326.100
Other Income	114.700	156.300	202.300
Operating Profit	1641.300	2337.200	2528.400
Interest	584.200	558.800	529.300
Exceptional Items	(40.000)	(52.400)	(64.200)
PBDT	1017.100	1726.000	1935.000
Depreciation	303.700	345.500	391.800
Profit Before Tax	713.400	1380.500	1543.200
Tax	204.300	471.200	107.200
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	509.100	909.300	1436.000
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustment	0.000	0.000	0.000
Net Profit	509.100	909.300	1436.000

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	11.39	10.36	9.07
Operating Profit Margin (PBIDT/Sales)	(%)	25.19	25.66	22.58
Return on Total Assets (PBT/Total Assets}	(%)	7.52	7.23	7.30
Return on Investment (ROI) (PBT/Networth)		0.15	0.15	0.14
Debt Equity Ratio (Total Debt/Networth)		0.81	1.16	1.11
Current Ratio (Current Asset/Current Liability)		1.19	1.53	1.77

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	311.200	311.200	424.438
Reserves & Surplus	27399.100	29827.000	41908.040
Money received against share warrants	283.100	283.100	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	27993.400	30421.300	42332.478
long-term borrowings	20789.400	28560.600	26834.104
Short term borrowings	9320.600	5499.500	7310.609
Total borrowings	30110.000	34060.100	34144.713
Debt/Equity ratio	1.076	1.120	0.807

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	29692.600	32331.200	40178.200
		8.886	24.271

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	29692.600	32331.200	40178.200
Profit	2691.900	3350.600	4575.241
	9.07%	10.36%	11.39%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	Yes
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

LITIGATION DETAILS

HIGH COURT OF GUJARAT TAX APPEAL No. 1495 of 2011
Status: PENDING (Converted from : : ST/3252/2011) CCIN No 001092201101495 Last Listing Date: 01/10/2012 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		: 14/11/2011			Registered On			: 14/11/2011
Bench Category		: DIVISION BENCH			District			: AHMEDABAD
Case Originated From		: THROUGH ADVOCATE			Listed			: 184 times
Classification		DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA
Act		· INCOME-TAX ACT, 1961
Office Details
S.No.	Lower Court Case Detail		Lower Court Name			Judge Name			Judgment date
c	INCOME TAX APPELLATE TRIBUNAL/691/2007		INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD			-			30/06/2011
Court Proceedings
S. No.	Filing Date	Document Name		Advocate Name			Court Fee on Document			Document Details
1	15/08/2011	VAKALATNAMA		MR MANISH J SHAH ADVOCATE for RESPONDENT(s)  1			-			MR MANISH J SHAH:1
2	15/08/2011	VAKALATNAMA		MS PAURAMIB SHETH ADVOCATE for PETITIONER(s)  1			-			MS PAURAMI B SHETH:1
3	30/11/2011	VAKALATNAMA		MR MANISH J SHAH ADVOCATE for RESPONDENT(s)  1			5			MR MANISH J SHAH:1
4	24/03/2014	APPEARANCE NOTE		MR NITIN K MEHTA ADVOCATE for PETITIONER(s)  1			0			MR NITIN K MEHTA(3286) for P:1

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	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
LONG-TERM BORROWINGS
Foreign Currency Convertible Bonds	NA	8414.000
SHORT TERM BORROWINGS
Loans repayable on demand From banks	NA	1907.700
Total	NA	10321.700

CORPORATE INFORMATION (As on 31.03.2014)

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: (As on 31.03.2014)

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 Million in 2013-14 – a growth of 8.14% over Rs.30648.500 Million 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 Million against Rs. 6704.700 Million in the previous year, while Net Profit climbed to Rs.3350.600 Million against Rs. 2691.900 Million 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.5923.900 Million in 2013- 14 as against Rs.5259.800 Million in 2012-13 – providing an adequate cushion for funding growth initiatives.

BUSINESS REVIEW AND DIVISIONAL PERFORMANCE: (As on 31.03.2014)

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 Million in 2012- 13 to Rs.27686.100 Million 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 Million 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 (As on 31.03.2014)

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 (As on 31.03.2014)

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 Million in 2012-13 to Rs.54331.900 Million 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 Million in 2013-14 against Rs.6659.500 Million 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 and 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.4717.100 Million in 2012-13 to Rs.5458.600 Million 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.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
a) Amount of claims of certain retrenched employees for re-instatement with back wages		0.000
b) Corporate guarantees given to Banks/ Institutions		50.000
c) Disputed demand not acknowledged as debt against which the Company has preferred appeal
- Income tax*		59.400
- Sales Tax/VAT		27.200
- Service Tax*	NA	40.400
Amount deposited with the Authority for the above Service Tax Demand Rs. 40.400 Million (Previous Year – Rs. 22.800 Million)
* The amount deposited with the authority in respect of above income tax and service tax demands are Rs. 59.400 Million (previous year Rs. 136.400 Million) and Rs. 40.400 Million (previous year Rs. 22.800 Million), 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.63.51
UK Pound	1	Rs.100.94
Euro	1	Rs.72.32

INFORMATION DETAILS

Information Gathered by :	PRP
Analysis Done by :	KAR
Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILITY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--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		74

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.