MIRA INFORM REPORT

Report No. :	314372
Report Date :	25.03.2015

IDENTIFICATION DETAILS

Name :	SUPREME PETROCHEM LIMITED
Registered Office :	Solitaire Corporation Park, Building No.11, 5^th Floor, 167, Guru Hargovinji Marg, Chakala, Andheri (East), Mumbai – 400093, Maharashtra
Country :	India
Financials (as on) :	30.06.2014
Date of Incorporation :	14.12.1989
Com. Reg. No.:	11-054633
Capital Investment / Paid-up Capital :	Rs. 965.020 Millions
CIN No.: [Company Identification No.]	L23200MH1989PLC054633
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Polystyrene (PS), Expendable Polystyrene (EPS), Specialty Polymers and Compounds and Extruded Polystyrene (XPS).
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Profit of the company has declined during financial year 2014. However, the rating takes into consideration company’s sound financial risk profile and decent liquidity position of the company. Trade relations are fair. Business is active. Payment terns are reported to be usually correct. The company can be considered for business dealing at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

NOT AVAILABLE

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

LOCATIONS

Registered / Corporate Office :	Solitaire Corporation Park, Building No.11, 5^th Floor, 167, Guru Hargovinji Marg, Chakala, Andheri (East), Mumbai – 400093, Maharashtra, India
Tel. No.:	91-22-67091900
Fax No.:	91-22-40055681
E-Mail :	ravi_kuddyady@spl.co.in sl_mondkar@spl.co.in marketing@spl.co.in r_rangarajan@spl.co.in sara_dsouza@spl.co.in
Website :	http://www.supremepetrochem.com
Factory 1 :	Amdoshi, Wakan Roha Road, Post: Patansai, Taluka Roha, District Raigad – 402106, Maharashtra, India
Tel. No.:	91-2194-222540-2548
Fax No.:	91-2194-222337/ 2537/ 2617
E-Mail :	splw@bom7.vsnl.net.in
Factory 2 :	Ammulavoyil Village, Andarkuppam Post, Manali New Town, Chennai – 600103, Tamilnadu, India
Marketing Offices :	Located at: · Mumbai · Delhi · Chennai

DIRECTORS

AS ON 30.06.2014

Name :	Mr. M. P. Taparia
Designation :	Chairman
Date of Birth/Age :	76 Years
Qualification :	B. A.
Experience :	He is the Managing Director of The Supreme Industries Limited. Expertise and wide experience in business management, marketing, operations and actively involved in various industry forums.
Date of Appointment :	14.12.1989
Other Directorship :	· The Supreme Industries Limited · Supreme Capital Management Limited · Kabra Extrusion Technik Limited · The West Coast Paper Mills Limited
Name :	Mr. Rajan B. Raheja
Designation :	Director
Date of Birth/Age :	17.06.1954
Date of Appointment :	14.12.1989
DIN No.:	00037480
Name :	Mr. B. L. Taparia
Designation :	Director
Name :	Mr. Satish Raheja
Designation :	Director (Upto May 27, 2014)
Name :	Mr. S. J. Taparia
Designation :	Director
Date of Birth/Age :	68 Years
Qualification :	B. E. (Mechanical)
Experience :	Expertise and rich experience in technical, operational and marketing aspects of industrial products. Actively involved in industry forum.
Date of Appointment :	22.11.1993
DIN No.:	00112513
Other Directorship :	· The Supreme Industries Limited · Supreme Capital Management Limited · Bharat Business Channel Limited · Oricon Enterprises Limited
Name :	Mr. Hasmukh Shah
Designation :	Director
Date of Birth/Age :	79 Years
Qualification :	B. A.
Experience :	Long experience in industry and is the Ex-Chairman of IPCL besides being the Member of the Board of Directors of reputed Companies.
Date of Appointment :	17.10.1994
DIN No.:	00152195
Other Directorship :	· Micro Inks Limited · Sun Pharmaceuticals Industries Limited · Atul Limited
Name :	Mr. M. S. Ramachandran
Designation :	Director
Address :	Q8, First Floor, Hauz Khas Enclave, New Delhi – 110016, India
Date of Birth/Age :	26.02.1945
Qualification :	B E (Mechanical)
Experience :	Former Chairman of IOC. Attended advanced Management Programme from Ashridge Management College in England and IIM in Ahmedabad. Also served as the Executive Director of Oil Co-ordination Committee. One of the foremost authorities on the Oil, Gas and Petrochemical Sector and is associated with many national and international companies. Inducted into the Hall of Fame at Chemtech Pharma Bio Award Function in April 2005.
Date of Appointment :	04.10.2007
DIN No.:	00943629
Other Directorship :	· ICICI Bank Limited · Gulf Oil Corporation Limited · Gulf Oil Lubricants India Limited · Ester Industries Limited · International Paper APPM Limited
Name :	Mr. R. Kannan
Designation :	Director
Date of Birth/Age :	23.09.1947
Qualification :	M. Tech. Chemical Engineering and Chartered Financial Analyst.
Experience :	He was formerly General Manager of ICICI Limited, in charge of the Oil & Gas division and thereafter Director of The Institute of Financial Management and Research, Chennai. He is currently a faculty Member of the Institute and is considered an expert in the Oil, Gas and Petrochemical Industry.
Date of Appointment :	06.10.2009
DIN No.:	00380328
Other Directorship :	· The Jeypore Sugars Co. Limited · ITCOT Consultancy and Services Limited · V. Ramakrishna Sugars Limited
Name :	Mr. Nihalchand Chauhan
Designation :	Director
Date of Birth/Age :	20.11.1935
Qualification :	B. Com. (Hons.) L.L.B., CAIIB
Experience :	He is respected and well known personality in Banking and Financial circles, has over 55 years’ experience in domestic and International Banking. His rich and varied experience includes long stints with State Bank of India and Arab Monetary Fund, Abudhabi.
Date of Appointment :	27.04.2006
DIN No.:	00021782
Other Directorship :	Kabra Extrusion Technik Limited
Name :	Ms. Ameeta Parpia
Designation :	Director
Date of Birth/Age :	49 Years
Qualification :	B.A., LLB.
Experience :	Senior Solicitor and Advocate with long experience in legal field.
Date of Appointment :	24.04.2013
Other Directorship :	· Prism Cement Limited · Raheja QBE General Insurance Company Limited

KEY EXECUTIVES

Name :	Mr. Gupta
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2014

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	58712000	60.84
Sub Total	58712000	60.84
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	58712000	60.84
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	55636	0.06
Financial Institutions / Banks	31587	0.03
Foreign Institutional Investors	120917	0.13
Sub Total	208140	0.22
(2) Non-Institutions
Bodies Corporate	4135464	4.29
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	13859312	14.36
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	18170456	18.83
Any Others (Specify)	1416586	1.47
Trusts	123489	0.13
Non Resident Indians	1225417	1.27
Clearing Members	50813	0.05
Foreign Corporate Bodies	16867	0.02
Sub Total	37581818	38.94
Total Public shareholding (B)	37789958	39.16
Total (A)+(B)	96501958	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1)	0	0.00
(2)	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	96501958	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Polystyrene (PS), Expendable Polystyrene (EPS), Specialty Polymers and Compounds and Extruded Polystyrene (XPS).

Products :

ITC Code No.	Product Descriptions
39031909	Polystyrene
39031100	Expendable Polystyrene

Brand Names :

--

Agencies Held :

--

Exports :

Products :

--

Countries :

--

Imports :

Products :

--

Countries :

--

Terms :

Selling :

--

Purchasing :

--

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	--
Name of the Person (Designation):	--
Contact Number:	--
Since how long known:	--
Maximum limit dealt:	--
Experience:	--
Remark	--

Customers :

Reference:	--
Name of the Person (Designation):	--
Contact Number:	--
Since how long known:	--
Maximum limit dealt:	--
Experience:	--
Remark	--

No. of Employees :

Not Available

Bankers :

Bank Name:	--
Branch:	--
Person Name (with Designation):	--
Contact Number:	--
Name of Account Holder:	--
Account Number:	--
Account Since (Date/ Year of A/c Opening):	--
Average Balance Maintained (Optional):	--
Credit Facilities Enjoyed (CC/OD/Term Loan):	--
Account Operation:	--
Remarks:	--

v State Bank of India

v Axis Bank Limited

v Central Bank of India

v ICICI Bank Limited

v IDBI Bank Limited

v ING Vysya Bank Limited

v The Karur Vysya Bank Limited

v The Hong Kong and Shanghai Banking Corporation Limited

Facilities :

SECURED LOANS	30.06.2014 (Rs. In Million)	30.06.2013 (Rs. In Million)
LONG TERM BORROWINGS
Rupee term loans	93.000	279.000
Total	93.000	279.000
LONG TERM BORROWINGS Rupee Term Loans amounting to Rs.279.000 Millions (Previous Year Rs.648.767 Millions) from Banks are secured by a first charge by way of mortgage of the Company’s immovable properties including Plant and Machinery and by hypothecation of movable assets (except trade receivables) subject to prior charge in favour of Company’s Bankers for working capital facilities. Working capital facilities (including letters of credit) from banks are secured by hypothecation of Company’s stocks and trade receivables and by second charge by way of mortgage of the Company’s Immovable properties including plant and machinery.

Auditors :
Name :	G. M. Kapadia and Company Chartered Accountants
Promoters :	v The Supreme Industries Limited v R. Raheja Investments Private Limited

CAPITAL STRUCTURE

AS ON 30.06.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
125000000	Equity Shares	Rs.10/- each	Rs. 1250.000 Millions
25000000	Redeemable Cumulative Preference Shares	Rs.10/- each	Rs. 250.000 Millions
	Total		Rs. 1500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
96501958	Equity Shares	Rs.10/- each	Rs. 965.020 Millions

In the financial year 2008-2009, the company bought back and extinguished 1537907 equity shares which has reduced the paid-up share capital of the company from Rs.983.765 Millions to Rs.968.386 Millions.

In the financial year 2013-2014, the company bought back and extinguished 336655 equity shares which has reduced the paid-up share capital of the company from Rs.968.386 Millions to Rs.965.020 Millions.

The details of Shareholders holding more then 5% Shares:

Name of the Shareholders	30.06.2014
	No. of Shares	%held
The Supreme Industries Limited	28936400	29.99
R. Raheja Investments Private Limited	28936400	29.99

The reconciliation of the number of shares outstanding is set out below:

Particulars	30.06.2014
Equity Shares at the beginning of the year	96838613
Add :	--
Less : Shares cancelled on buy back of Equity Shares	336655
Equity Shares at the end of the year	96501958

The Company has only one class of shares referred to as equity shares having a par value Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. The holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in the event of liquidation of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	30.06.2014	30.06.2013	30.06.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	965.020	968.386	968.386
(b) Reserves & Surplus	2677.704	2559.630	2114.638
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	3642.724	3528.016	3083.024
(3) Non-Current Liabilities
(a) long-term borrowings	93.000	320.945	940.857
(b) Deferred tax liabilities (Net)	492.415	487.204	438.559
(c) Other long term liabilities	12.037	12.256	9.887
(d) long-term provisions	13.599	14.922	16.351
Total Non-current Liabilities (3)	611.051	835.327	1405.654
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	4907.273	4908.524	5039.559
(c) Other current liabilities	435.357	609.046	659.785
(d) Short-term provisions	239.343	403.274	258.502
Total Current Liabilities (4)	5581.973	5920.844	5957.846
TOTAL	9835.748	10284.187	10446.524
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3690.594	3636.123	3424.894
(ii) Intangible Assets	22.279	21.785	23.671
(iii) Capital work-in-progress	39.874	314.319	555.251
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	81.713	82.169	115.166
(e) Other Non-current assets	110.481	50.328	61.071
Total Non-Current Assets	3944.941	4104.724	4180.053
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1792.597	2195.330	2634.592
(c) Trade receivables	3372.041	3265.956	2432.892
(d) Cash and cash equivalents	231.728	277.393	365.136
(e) Short-term loans and advances	457.212	383.096	794.857
(f) Other current assets	37.229	57.688	38.994
Total Current Assets	5890.807	6179.463	6266.471
TOTAL	9835.748	10284.187	10446.524

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.06.2014	30.06.2013	30.06.2012
	SALES
		Revenue from operations	32352.379	29396.020	22492.526
		Other Operating Revenues	290.599	275.570	234.196
		Other Income	58.555	53.852	64.876
		TOTAL	32701.533	29725.442	22791.598
Less	EXPENSES
		Cost of Materials Consumed	20926.832	17959.723	13982.635
		Purchases of Stock-in-Trade	8588.918	8298.978	6023.927
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	282.606	(59.727)	207.524
		Employees benefits expense	282.705	239.984	218.010
		Other expenses	1664.758	1670.712	1332.569
		TOTAL	31745.819	28109.670	21764.665
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		955.714	1615.772	1026.933
Less	FINANCIAL EXPENSES		228.439	238.815	319.928
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		727.275	1376.957	707.005
Less/ Add	DEPRECIATION/ AMORTISATION		287.374	277.061	229.234
	PROFIT/ (LOSS) BEFORE TAX		439.901	1099.896	477.771
Less	TAX		134.002	371.663	164.024
	PROFIT/ (LOSS) AFTER TAX		305.899	728.233	313.747
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	7631.774	5398.835	4353.319
	IMPORTS
		Raw Materials and Traded goods	27518.837	23919.526	18398.960
		Stores & Spares	40.771	30.166	19.621
		Capital Goods	5.016	87.125	126.962
	TOTAL IMPORTS		27564.624	24036.817	18545.543
	Earnings / (Loss) Per Share (Rs.)		3.16	7.52	3.24

QUARTERLY RESULTS

PARTICULARS	30.09.2014	31.12.2014
Type	1^st Quarter	2^nd Quarter
Net Sales	6985.000	6138.900
Total Expenditure	6718.200	6674.500
PBIDT (Excl OI)	266.800	(535.500)
Other Income	5.000	7.800
Operating Profit	271.800	(527.800)
Interest	59.000	54.600
Exceptional Items	0.000	0.000
PBDT	212.800	(582.300)
Depreciation	53.400	58.300
Profit Before Tax	159.500	(640.600)
Tax	52.000	(51.200)
Provisions and contingencies	0.000	0.000
Profit After Tax	107.400	(589.400)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	107.400	(589.400)

KEY RATIOS

PARTICULARS		30.06.2014	30.06.2013	30.06.2012
Net Profit Margin (PAT/Sales)	(%)	0.95	2.48	1.39
Operating Profit Margin (PBDIT/ Sales)	(%)	2.95	5.50	4.57
Return on Total Assets (PBT/Total Assets}	(%)	4.49	11.03	4.83
Return on Investment (ROI) (PBT/Networth)		0.12	0.31	0.15
Debt Equity Ratio (Total Debt/Networth)		0.03	0.09	0.31
Current Ratio (Current Asset/Current Liability)		1.06	1.04	1.05

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particulars	30.06.2012	30.06.2013	30.06.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	968.386	968.386	965.020
Reserves & Surplus	2114.638	2559.630	2677.704
Net worth	3083.024	3528.016	3642.724
Long-term borrowings	940.857	320.945	93.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	940.857	320.945	93.000
Debt/Equity ratio	0.305	0.091	0.026

YEAR-ON-YEAR GROWTH

Year on Year Growth	30.06.2012	30.06.2013	30.06.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	22492.526	29396.020	32352.379
		30.692	10.057

NET PROFIT MARGIN

Net Profit Margin	30.06.2012	30.06.2013	30.06.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	22492.526	29396.020	32352.379
Profit	313.747	728.233	305.899
	1.39%	2.48%	0.95%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	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	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10463830	19/05/2014 *	400,000,000.00	ING VYSYA BANK LIMITED	185, ANNASALAI, CHENNAI, TAMIL NADU - 600006, INDIA	C04789335
2	10353936	30/10/2012 *	338,700,000.00	THE KARUR VYSYA BANK LIMITED	KAMANWALA CHAMBERS, SIR P.M. ROAD, FORT, MUMBAI,  MAHARASHTRA - 400001, INDIA	B62284401
3	10330666	29/03/2012 *	600,000,000.00	STATE BANK OF INDIA	CAG BRANCH, VOLTAS HOUSE, 23, J N HEREDIA MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA	B39674890
4	10133430	03/11/2008	200,000,000.00	ING VYSYA BANK LIMITED	PATEL CHAMBERS GROUND FLOOR, SANDHURST BRIDGE OPERA HOUSE, MUMBAI, MAHARASHTRA - 400007, INDIA	A52331469
5	10096096	27/10/2008 *	200,000,000.00	THE KARUR VYSYA BANK LIMITED	POST BOX NO.21,, ERODE ROAD, KARUR, TAMILNADU -  639002, INDIA	A50150077
6	80022213	23/02/2006	200,000,000.00	UTI BANK LIMITED	FORT, P M ROAD, MUMBAI, MAHARASHTRA - 400001, INDIA	-
7	80006091	28/11/2005	320,000,000.00	STATE BANK OF INDIA	NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	-
8	90230060	09/06/2006 *	493,080,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	-
9	90230011	04/10/2004	120,000,000.00	UTI BANK LIMITED	131; MAKER TOWER; F; 13 TH FLOOR, CUFFE PARADE; COLOBA, MUMBAI, MAHARASHTRA - 400005, INDIA	-
10	90283294	06/09/2005 *	65,000,000.00	ANDHRA BANK	MOUNT ROAD, 95; ANNA SALAI, CHENNAI, TAMILNADU -  600002, INDIA	-
11	90229949	06/04/2004 *	200,000,000.00	THE KARUR VYSYA BANK LIMITED	KAMANWALA CHAMBERS, SIR P.M. ROAD, MUMBAI, MAHARASHTRA - 400001, INDIA	-
12	90229944	10/03/2004	200,000,000.00	ING VYSYA BANK LIMITED	OPERA HOUSE, MUMBAI, MAHARASHTRA, INDIA	-
13	90229925	29/12/2003	300,000,000.00	ING VYSYA BANK LIMITED	PATEL CHEMBAER; GROUND FLOOR, OPERA HOUSE, MUMBAI, MAHARASHTRA - 400007, INDIA	-
14	90281583	27/08/2003	50,250,000.00	BANK OF INDIA	CHENNAI CORPORATE BANKING BRANCH, TARAPORE TOWERS; ANNA SALAI, CALCUTTA, WEST BENGAL - 600002, INDIA	-
15	90229891	21/11/2003 *	200,000,000.00	THE KARUR VYSYA BANK LIMITED	KAMANWALA CHAMBERS, FORT BRANCH, MUMBAI, MAHARASHTRA - 400001, INDIA	-
16	90229855	21/03/2003	150,000,000.00	ICICI LIMITED	FREE PRESS HOUSE, 215 NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	-
17	90229798	04/09/2002	100,000,000.00	INDUSIND BANK LIMITED	HOECHST HOUSE; 3RD FLOOR, NARIMAN POINT, MUMBAI,  MAHARASHTRA - 400021, INDIA	-
18	90229673	17/04/2001	276,500,000.00	VYSYA BANK LIMITED	OPERA HOUSE BRNACH, OPERA HOUSE, MUMBAI, MAHARASHTRA - 400007, INDIA	-
19	90229630	16/12/2000	368,700,000.00	BANK OF INDIA	244-A; MITTAL COURT, A; WING ; NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	-
20	90229616	20/10/2000	540,000,000.00	STATE BANK OF INDIA	COMMERCIZL BRANCH, JUSTICE G.N. VAIDYA MARG, MUMBAI, MAHARASHTRA - 400023, INDIA	-
21	90229608	18/12/2000 *	367,500,000.00	CENTRAL BANK OF INDIA	CORPORATE FINANCE BRNACH, M.G. ROAD; FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	-
22	90229606	22/09/2000	472,000,000.00	CORPORATION BANK	INDUSTRIAL FINANCE BRANCH; BHARAT HOUSE', GROUND  FLOOR; B.S. MARG, MUMBAI, MAHARASHTRA - 400001, INDIA	-
23	90229599	20/06/2001 *	200,000,000.00	IDBI BANK LIMITED	224; A- MITTAL COURT, A; WING; NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	-
24	90229597	03/01/2001 *	75,000,000.00	SICOM LIMITED	NIRMAL 1ST FLOOR, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	-
25	90229567	11/04/2000	100,000,000.00	UCO BANK	BALDOTA BHAVAN; QUEEN'S ROAD BRNACH, MAHARASHI KARVE ROAD, MUMBAI, MAHARASHTRA - 400020, INDIA	-
26	90229535	01/03/2001 *	126,750,000.00	STATE BANK OF INDORE	NANABHAI LANE, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	-
27	90229530	07/04/2000 *	390,000,000.00	ICICI LIMITED	FREE PRESS HOUSE, 215; NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	-
28	90232526	25/11/1999	1,486,500,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, JUSTICE G.N. VAIDYA MARG, MUMBAI, MAHARASHTRA - 400023, INDIA	-
29	90229517	01/03/2001 *	110,000,000.00	BOMBAY MERCANTILE CO-OP; BANK LIMITED	CORPORATE FINANCE OFFICE, P.D. MELLO ROAD, MUMBAI, MAHARASHTRA - 400009, INDIA	-
30	90229508	03/01/2001 *	150,000,000.00	IDBI BANK LIMITED	IDBI TOWER, COLOBA, MUMBAI, MAHARASHTRA - 400005, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULARS	30.06.2014 (Rs. In Millions)	30.06.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Fixed Deposits	0.000	41.945
Total	0.000	41.945

CHANGE OF ADDRESS

The Registered Office of the company has been shifted from 612, Raheja Chambers, Nariman Point, Mumbai – 400021, Maharashtra, India to the present address w.e.f.30.09.2014.

CORPORATE INFORMATION

Supreme Petrochem Limited (SPL) is engaged in the manufacture of Polystyrene (PS), Expendable Polystyrene (EPS), Specialty Polymers and Compounds and Extruded Polystyrene (XPS) with manufacturing facilities at Nagothane District Raigad, Maharashtra and Ammulavoyil Village, Manali New Township, Chennai, Tamilnadu. SPL also has a captive gas power plant at Nagothane.

REVIEW OF OPERATIONS

The markets for the Company`s products continued to be weak in the year due to high inflation, wild fluctuations in rupee value, lower growth in industrial production, low consumer confidence and poor offtake of consumer durables. The domestic Polystyrene (PS) and Expandable Polystyrene (EPS) markets declined by 9.5% and 5.2% respectively during the year.

The traditional export markets continued to be affected due to uncertain economic and political situation in these markets. The Company could increase its exports of PS and EPS by changing the focus to other markets/ customers.

The Speciality Polymers and Compounds (SPC) business recorded a marginal increase of 4.6% in volume whereas the Extruded Polystyrene Insulation Board (XPS) business has shown healthy growth over the previous year.

Despite the weak economic conditions in both domestic and international markets the Company could maintain its volumes with a marginal decline of 0.8% during the year. With the installation of stable Government at centre, continued excise duty relief to the consumer durables market, increased disposable income in the hands of consumers and improvement in consumer confidence it is expected that the sales volume of the Company`s products will be better in 2014-15 as compared to the year.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMY OVERVIEW

The growth of the Indian economy was impacted during the year 2013-14 due to policy paralysis, lack of governance and government spending coupled with high inflation, volatility in the value of the rupee, rising cost of industrial inputs and economic uncertainties. All this led to a new low in consumer confidence and weak demand for consumer products. Indian economy recorded its second successive year of sub 5% GDP growth at 4.7%.

The global economy is witnessing a gradual recovery. Global GDP recorded a 2.9% growth in 2013. With continued strengthening of some of the major economies in the western world it is expected that the global economy will record a better GDP growth of around 3.4% in 2014. This will help the developing economies like India in the form of increased export opportunities.

It is hoped that with the installation of a stable Government with clear majority post general elections the governance framework will get strengthened and the speed of reforms will gather momentum resulting in revival of economy. The worst appears to be behind us and going forward the economy is likely to pick up pace. In the Finance Bill, 2014 the Government has provided a thrust to infrastructural growth, manufacturing housing and rural area development which will create enough employment opportunities thus boosting demand for consumer products.

INDUSTRY OVERVIEW

The Domestic Polystyrene (PS) industry witnessed two different patterns in first half and second half of the year . The domestic PS industry faced a difficult business environment during the first half of the year, which saw shrinking of domestic market by almost 16% in view of high Styrene Monomer (raw material) prices, depreciation of rupee and lower import duty on Polystyrene from Singapore (1.15%). High prices of PS led to use of alternate materials like ABS and Polypropylene and increased consumption of reprocessed PS in certain consumer applications by some processors thereby affecting sale of PS. Sluggish demand in segments like Refrigerator, Water purifier, Washing Machine and Coolers also contributed to the fall in demand.

The stable Rupee, reduction in Styrene Monomer prices, extended summer, demand increase in Refrigerators and other appliances, Rigid Transparent Sheets, Food Service Wares, Pen and Stationery in the second half of the year resulted in restricting the degrowth for the entire year to 9.5%.

The Expandable Polystyrene (EPS) domestic market saw a degrowth of 5.2%. However, the Company was able to grow its share by 7.2% due to consolidation of capacities in the domestic sector. In last one year the Company noticed that EPS processors see value in building manufacturing capacity for 3D wall panel systems. Six plants have already come on stream in India with installed capacity of 500 MT per month and are currently operating at 15% efficiency. The Company is focusing on promotion of use of these systems as partition walls in township projects and in high rise buildings where movement of bricks is difficult. This market is growing gradually on a sustainable basis. Promotion of small beads in non food applications is undertaken in various applications including thin walled rigid boxes for packaging and lost foam technology to make complicated casted components.

The Company’s Speciality Polymers and Compounds Business (SPC) recorded a marginal increase in volume despite political and economic uncertainties in international markets. With the Company’s renewed focus on Masterbatch and PP Compounds businesses, these product groups registered a robust growth in volume over last financial year. New customers have been acquired for White and UV Masterbatches in the domestic as well as international markets. Prospects for growth in these areas are encouraging.

The process of establishing a large retail distribution network for developing the market for Extruded Polystyrene Insulation Board (XPS) is progressing satisfactorily resulting in robust volume growth of 20% over last year. The revamping of the production line to further improve quality including reduction in density of the XPS Board has given a boost to the sales effort. Products for new applications as per market demand have been introduced. The Company’s manufacturing process is based on best environmental practices. The Company grades are CFC (Chloro Fluoro Carbon) and HCFC (Hydro Chloro Fluoro Carbon) free. HFC’s (Hydro Fluoro Carbon) which are permitted in rest of the world are used as blowing agents. In tune with latest advances in Europe, the Company has also introduced CO2 based grades to significantly reduce green gas emissions. Product is recognised and accepted for roof insulation along with water proofing systems in various segments like commercial buildings, hotels, hospitals, institutions and SEZ buildings. The growth in construction sector, cold chains and storages has fuelled demand.

Export market continued to be difficult since PS producers in Middle East, Egypt, Singapore and Taiwan have no sizeable domestic market and hence resort to exporting even with very low margin in order to utilize their capacity at reasonable levels. The Company not only could retain its presence but was successful in developing new customers and markets while retaining its margin in this difficult environment due to superior quality and culture to provide amazing services to its customers.

The company continues its policy of pursuing small and medium sized customers, to protect margins in such competitive environment. Due to rationalisation of PS capacity in Europe, the company is able to participate in European countries with reasonably good margins. This trend is expected to continue in the coming financial year also. Similar restructuring has taken place in USA, which is expected to allow the company to increase volumes in North America.

The company has been able to establish a decent customer base for EPS Food grade in all territories allowed by the Technology provider. Off-take agreement with the Technology provider for South East Asia market is also established smoothly. Standard and fire resistant grade export of EPS to several countries has also been established. One of the main challenges for EPS export is the new tougher international regulation about shipment of Hazardous Cargoes. The company is working closely with several shiipping companies to overcome this hurdle.

FINANCE

The Company’s total debt stands reduced to Rs.320.300 Millions as on June 30, 2014. Total borrowings have been brought down by about Rs. 426.500 Millions during the year. As on June 30, 2014 the Company has a very healthy debt to equity ratio of 0.09 and total outside liability to networth ratio of 1.60. The Company expects to be debt free on net basis by June 30, 2015.

OUTLOOK

Polystyrene: The Company expects the favourable factors seen in the second half of the year viz. the demand increase in refrigerator and other appliances, rigid transparent sheet, food serviceware, stationery etc. to continue. The Company therefore expects the domestic PS market to grow by 5% during the year 2014-15. The Company is hopeful of maintaining its export market share.

With the removal of anomaly in the customs notification for application of concessional rate of duty on imports of PS from Singapore under Comprehensive Economic Cooperation Agreement (CECA) in the budget the duty application stands restored to 7.5% from 1.15%. The Company hopes that with this correction in import duty ratio, imports from Singapore would reduce substantially thus increasing the market available to domestic players. The domestic prices of PS which till now were not remunerative due to imports from Singapore under CECA would be able to provide a fair return on investments made.

Expandable Polystyrene: The domestic EPS market is expected to grow by about 10% in 2014-15. Though packaging continues to be the main application for EPS and forms a major part of domestic demand, growth is expected to be more from block applications in cold storages and construction industry. Use of light weight concrete has caught attention of Ready Mix Concrete companies wherein coated EPS beads are mixed with cement and water in a specified proportion. Scarcity of sand is likely to drive this application in time to come. Small size beads in this application can be used for making light weight insulating bricks and blocks. With the country’s focus on infrastructure development, use of EPS blocks as Geofoam material in construction of roads and bridges looks promising.

Speciality Polymers and Compounds: Business outlook for the coming year is positive considering the growth expected in the domestic appliances sector and the improving business environment in the international market. This should enhance the market for Speciality Polymers and Compounds.

Extruded Polystyrene Insulation Board (XPS): Efforts are being taken to promote insulation at national level as the most energy efficient and cost effective way of achieving energy savings objectives, and XPS is an important contributor. The Company has joined hands with other insulation material manufacturers to form an association called India Insulation Forum which is working very closely with Bureau of Energy Efficiency to specify insulation guidelines to construction industry. Efforts are being taken to get BIS specification. Notification of ‘Energy Conservation Building Code’ (ECBC) by State Governments is expected to generate more demand for product in time to come.

AWARDS AND RECOGNITION

The Company has achieved the following recognitions and awards during the period:

· Certificate of Appreciation’ (For year 2013) from National Safety Council of India for demonstrating good safety performance.

· Certificate of Merit’ (For year 2013) From National Safety Council – Maharashtra Chapter for continuous longest accident free period.

· Greentech Safety Gold Award (For year 2013) from Greentech Foundation, New Delhi for outstanding achievement in Safety Management.

· Greentech Environment Silver Award (For year 2013) from Greentech Foundation, New Delhi for outstanding achievement in Environment Management

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED ON 31.12.2014

(RS. IN MILLIONS)

		Particulars	2^ND Quarter Ended	1^st Quarter Ended	Year to date figure of the half year ended
			31.12.2014 Unaudited	30.09.2014 Unaudited	31.12.2014 Unaudited
1	Income from Operations
	a) Net Sales/Income from Operations (net of excise duty)		6112.016	6942.344	13054.360
	b) Other Operating Income		26.913	42.679	66.963
	Total Income from Operations (Net)		6138.929	6985.023	13121.323
2	Expenses
	a)	Cost of Materials consumed	4988.460	4281.687	9270.147
	b)	Purchase of stock in-trade	1555.356	2155.769	3711.125
	c)	Changes in inventories of finished goods, work-in-progress and stock-in-trade	(484.791)	(216.256)	(701.047)
	d)	Employee benefit expenses	91.345	63.168	154.513
	e)	Depreciation and amortization expense	58.284	53.364	111.648
	f)	Other expenses	524.084	433.812	957.896
	Total Expenses		6732.738	5771.544	13504.282
3		Profit /(Loss) from operations before other income, finance costs and exceptional items (1-2)	(593.809)	210.850	(382.959)
4	Other Income		7.756	7.632	15.388
5		Profit /(Loss) from ordinary activities before finance costs and exceptional items (3+4)	(585.053)	218.482	(367.571)
6	Finance Costs		54.557	59.013	113.570
7		Profit /(Loss) from ordinary activities after finance costs but before exceptional items (5-6)	(640.610)	159.469	(481.141)
8	Exceptional Items		--	--	--
9	Profit /(Loss) from ordinary activities before tax		(640.610)	159.469	(481.141)
10	Tax Expense		(51.196)	52.039	0.843
11	Net Profit /(Loss) from ordinary activities after tax (9-10)		(589.414)	107.430	(481.984)
12	Extraordinary items (net of tax expense)		--	--	--
13	Net Profit /(Loss) for the period (11-12)		(589.414)	107.430	(481.984)
14	Paid up equity share capital (Eq. shares of Rs.10/- each)		965.020	965.020	965.020
15	Reserve excluding revaluation reserves			--
16		Earnings per share (before/after extraordinary items) of Rs.10/- each
		Basic	(6.11)	1.11	(4.99)
		Diluted	(6.11)	1.11	(4.99)
		Cash EPS before Extraordinary Items	(5.50)	1.67	(3.84)
A		PARTICULARS OF SHAREHOLDING
1		Public Shareholding
		- No. of Shares	37789958	37789958	37789958
		- Percentage of Shareholding	39.16%	39.16%	39.16%
2		Promoters and promoter group shareholding
		a) Pledged/Encumbered
		- Number of shares	--	--	--
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	--	--	--
		- Percentage of shares (as a % of the total share capital of the Company)	--	--	--
		b) Non- encumbered
		- Number of shares	58712000	58712000	58712000
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	100.00	100.00	100.00
		- Percentage of shares (as a % of the total share capital of the Company)	60.84%	60.84%	60.84%

	Particulars		2nd Quarter ended 31.12.2014
B		Investor Complaints [Nos.]
		Pending at the beginning of the quarter	Nil
		Received during the quarter	25
		Disposed during the quarter	25
		Remaining unresolved at the end of the quarter	Nil

STATEMENT OF ASSETS AND LIABILITIES

SOURCES OF FUNDS	As at current half year ended
	31.12.2014
	Unaudited
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	965.020
(b) Reserves & Surplus	2167.062
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	3132.082
(3) Non-Current Liabilities
(a) long-term borrowings	0.000
(b) Deferred tax liabilities (Net)	478.501
(c) Other long term liabilities	12.137
(d) long-term provisions	13.953
Total Non-current Liabilities (3)	504.591
(4) Current Liabilities
(a) Short term borrowings	393.502
(b) Trade payables	5764.295
(c) Other current liabilities	464.058
(d) Short-term provisions	137.749
Total Current Liabilities (4)	6759.604
TOTAL	10396.277
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets	3625.095
(b) Long-term Loan and Advances	75.939
(c) Other Non-current assets	188.613
Total Non-Current Assets	3889.647
(2) Current assets
(a) Current investments	0.000
(b) Inventories	3285.456
(c) Trade receivables	2187.429
(d) Cash and cash equivalents	199.823
(e) Short-term loans and advances	829.594
(f) Other current assets	4.328
Total Current Assets	6506.630
TOTAL	10396.277

NOTES:

· The continuous fall in the price of crude oil over the last quarter resulted in sharp correction in the price of Styrene Monomer (SM), the main raw material for the Company’s products. SM prices witnessed a fall of more than US$ 550 per MT over the last quarter. This in turn adversely affected selling prices of Company’s products and also resulted in inventory losses during the quarter.

· Styrenics is the primary business segment of the Company. The secondary segment (Geographical) is as under:

Particulars	2^nd Quarter ended on	1^st Quarter ended on	Year to date figures for the half year ended
	31.12.2014	30.09.2014	31.12.2014
	Unaudited	Unaudited	Unaudited
(a) Net Sales/Income from Operations:	4491.734	5784.218	10275.950
Within India	1647.195	1198.178	2845.373
Outside India	6138.929	6982.394	13121.323
(b) All the Assets of the Company are within India except these Debtors	247.357	351.115	247.357

· Effective from July 1, 2014 the Company has charged depreciation based on the revised useful life of the assets as per the requirements of Schedule II of the Companies Act, 2013. Consequently depreciation charge is lower by Rs. 5.330 Millions for the quarter ended December 31, 2014 and Rs. 25.137 Millions for the half year ended December 31, 2014. Further, carrying value of the assets whose useful life was already exhausted as on July 1, 2014, amounting to Rs. 43.416 Million and deferred tax credit of Rs. 14.757 Millions thereon has been recognised in the opening balance of retained earnings. 

· The Company bought back 336655 equity shares in the Buy Back Scheme which closed on October 31, 2014.

· Figures of the previous year/period/quarter are regrouped where necessary.

· The above results by the Audit Committee, approved by the Board of Directors in the meeting held on January 21, 2015 and subjected to a limited review by the statutory auditors.

CONTINGENT LIABILITIES:

Particulars	30.06.2014 (Rs. In Millions)	30.06.2013 (Rs. In Millions)
(a) Claims against the company not acknowledged as debt; (matters pending in court/ arbitration. No cash outflow is expected in future.)
Disputed Excise/ Service Tax demand	315.684	224.481
Disputed Sales Tax demand.	1.213	0.088
Disputed Income Tax liability (matters under appeal)	80.673	76.632
(b) Counter guarantees given to banks against guarantees issued by the Banks
Guarantee issued for buyback of shares	76.000	0.000
Other bank guarantees.	21.846	22.551
(c) Other money for which the Company is contingently liable
Letter of Credit opened by Bankers and outstanding at the year end.	1687.858	2105.514
Bills discounted but not matured	254.328	312.099

FIXED ASSETS

· Land (Freehold)

· Buildings

· Plant and Machinery

· Office Equipment’s

· Computers

· Air conditioners

· Vehicles

· Furniture and Fixtures

· 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. 62.20
UK Pound	1	Rs. 92.93
Euro	1	Rs. 68.03

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	BVA

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	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.