MIRA INFORM REPORT

Report No. :	345200
Report Date :	16.10.2015

IDENTIFICATION DETAILS

Name :	SIGNET INDUSTRIES LIMITED
Registered Office :	308, Acme Plaza, Opposite Sangam Cinema, Andheri Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra
Tel. No.:	91-22-32448061-64 / 30888064
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	29.01.1985
Com. Reg. No.:	11-035202
Capital Investment / Paid-up Capital :	Rs.395.870 Million
CIN No.: [Company Identification No.]	L51900MH1985PLC035202
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCS3489F
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in Merchant Trading of all Kind of Polymers and Other Products and Manufacturing of Micro Irrigation System (DRIP), Sprinkler Pipe / PVC Pipe and Agro fittings and its Allied Products, all type of House Hold and Plastic Moulded Furniture.
No. of Employees :	419 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 2791000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject was incorporated in the year 1985 as a distributor of polypropylene. Subsequently the company also started with the distributorship as well as the merchant trading of different polymers, chemicals and other petrochemical products. During 2011, the company entered into the manufacturing activity and manufactures plastic-moulded products for the Micro Irrigation Segment (MIS) and household use. For the financial year ended 2015, company has reported satisfactory operational performance and it has maintained above average profitability margins at 1.78%. Rating draw strength from the long-standing experience of the promoters in polymer and plastic and plastic industry backed by healthy operations of manufacturing division along with geographically diversified customer base of its Micro Irrigation Systems business and continuous financial support received from the promoters. Rating strength partially offset by vulnerability of the company’s profitability to volatility in polymer prices and moderate liquidity position on account of highly working capital intensive nature of operations. Trade relations are reported as fair. Payment terms are reported to be usually correct. In view of aforesaid, the company can be considered for business dealings at usual trade terms and condition.

NOTES :

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

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	26.02.2015

Rating Agency Name	CARE
Rating	Short-Term Bank Facilities = A3
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	26.02.2015

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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Amit Agarwal
Designation :	Assistant Manager in Finance
Contact No.:	91-731-4217800

LOCATIONS

Registered Office :	308, Acme Plaza, Opposite Sangam Cinema, Andheri-Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra, India
Tel. No.:	91-22-32448061-64 / 30888064
Fax No.:	91-22-56941567
E-Mail :	somani.tarun@gmail.com info@groupsignet.com
Website :	http://www.groupsignet.com
Administrative / Corporate Office :	314/3, SDA Compound, Lasudia Mori, Dewas Naka, Indore – 452001, Madhya Pradesh, India
Tel. No.:	91-731-4217800
Fax No.:	91-731-4217867
E-Mail :	Info@groupsignet.com
Factory:	Plot No: 462-465, Sector-3, Industrial Area, Pithampur, District Dhar, Madhya Pradesh, India

DIRECTORS

As on 31.03.2015

Name :	Mr. Mukesh Sangla
Designation :	Managing Director
Address:	1-B, Gulmohar Ext., Indore - 452001, Madhya Pradesh, India
Date of Appointment :	10.04.1991
DIN No.:	00189676
Name :	Mr. Saurabh Sangla
Designation :	Director
Address:	1-B, Gulmohar Ext., Indore - 452001, Madhya Pradesh, India
Date of Appointment :	07.07.2003
DIN No.:	00206069
Name :	Mrs. Nishtha Neema
Designation :	Director
Address:	26, Saraswati Nagar,, Annapurna Road, Indore - 452009, Madhya Pradesh, India
Date of Birth/ Age:	01.12.1980
Date of Appointment :	13.08.2014
Expertise in Specific Functional Area :	Audit, Finance and Taxation
DIN No.:	01743710
Name :	Mr. Murli Dhar Vashist
Designation :	Director
Address:	62/11, Rajasthan Housing Board, Pratap Nagar , Sanganer, Jaipur - 302033, Rajasthan, India
Date of Birth/ Age:	10.06.1974
Date of Appointment :	22.10.2009
Expertise in Specific Functional Area :	Audit, Finance and Taxation
DIN No.:	02824595
Name :	Mr. Akhilesh Gupta
Designation :	Additional Director
Address:	Bihari Ji Ka Mandir, Biaora - 465674, Madhya Pradesh, India
Date of Appointment :	01.03.2015
DIN No.:	07106214

KEY EXECUTIVES

Name :	Mrs. Preeti Singh
Designation :	Company Secretary
Address:	Flat No. 301, Vasila Apartment,, Near Dhobi Ghat, New Palasia, Indore - 452001, Madhya Pradesh, India
Date of Appointment :	30.08.2012
PAN No.:	AMSPC0123A
Name :	Mr. Amit Agarwal
Designation :	Assistant Manager in Finance
Name :	Mr. Sumit Jamad
Designation :	Chief Financial Officer
Address:	Sidh Bhawan. Oswal Mohalla, Madanganj, Kishangarh, Ajmer - 305801, Rajasthan, India
Date of Appointment :	13.08.2014
PAN No.:	AFFPJ9845Q

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2015

Category of Shareholder	No. of Shares	% Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	7029954	24.09
Bodies Corporate	14381046	49.27
Sub Total	21411000	73.36
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	21411000	73.36
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	7315071	25.06
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	385799	1.32
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	71073	0.24
Any Others (Specify)	4057	0.01
Non Resident Indians	153	0.00
Clearing Members	3904	0.01
Sub Total	7776000	26.64
Total Public shareholding (B)	7776000	26.64
Total (A)+(B)	29187000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	29187000	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in Merchant Trading of all Kind of Polymers and Other Products and Manufacturing of Micro Irrigation System (DRIP), Sprinkler Pipe / PVC Pipe and Agro fittings and its Allied Products, all type of House Hold and Plastic Moulded Furniture.
Products :	Micro Irrigation System Sprinkler Pipe / PVC Pipe Agro Fittings Plastic Molded Furniture
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	Singapore
Imports :
Products :	Raw Material
Countries :	Korea Taiwan Kuwait United Arab Emirates United States of America
Terms :
Selling :	Depend
Purchasing :	Depend

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
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

End Users and OEM’s

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

No. of Employees :

419 (Approximately)

Bankers :

Banker Name	UCO Bank
Branch Address	2/5, 3/5, Girnar Tower, New Palasia Branch, Indore-452003, Madhya Pradesh, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged
Punjab National Bank, Sitlamata Bazar Main Road, Cloth Market, Sitlamata, Maharaja Tukoji Rao Holker Cloth Market, Indore-452002, Madhya Pradesh, India

Facilities :

Secured Loan	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Term Loans
From Banks	639.810	701.425
Less : Current Maturity of long term debts	(269.721)	(189.808)
From Financial Institution	26.000	0.000
Less : Current Maturity of long term debts	(6.194)	0.000
Other Loan	2.664	5.223
Less : Current Maturity of long term debts	(1.864)	(2.566)
Short-term borrowings
Loans Repayable on demand
Working capital Loan From Banks	728.417	903.141
Buyers Credit	5.467	0.000
Total	1124.579	1417.415

Note : Short Term Borrowing:

Working Capital Loans from Banks amounting to Rs.728.417 Million (Pre. Year Rs.802.818 Million) are secured by hypothecation of stock of raw materials, work in process, finished goods, other current assets and charge on book debts, second pari passu charge on the Fixed Assets (both present and future) of the company, extension of equitable mortgage of the immovable properties situated at Industrial Area Pithampur and Kelodhala, Dewas Naka, Indore and personal guarantee of Mr. Mukesh Sangla and Mr. Saurabh Sangla, Directors of the company and Mrs. Monika Sangla and Corporate Guarantee of Kamdeep Marketing Private Limited.

Working Capital Loan includes Demand Loans availed during the year, the said loans outstanding as at 31st March 2015, was Rs. NIL (Previous. Year Rs.100.323 Million), is secured by lien on Fixed Deposits (included under banks balances with banks in deposit accounts in note 16) for Rs. NIL (Previous Year Rs.111.500 Million).

Short Term Borrowings aggregating to Rs.728.417 Million (Previous Year Rs.802818) are secured by Personal Guarantee of Directors Mr. Mukesh Sangla and Mr. Saurabh Sangla and Mrs. Monika Sangla and corporate guarantee of Kamdeep Marketing Private Limited. During the year Company has availed buyer’s credit as at 31st March 2015 Rs.5466.625 Million (Previous Year Nil) is secured by hypothecation of stocks and book debts and by earmarking the letter of credit facilities sanctioned by the banks, personal guarantee of Mr. Mukesh Sangla and Mr. Saurabh Sangla, Directors of the company and Mrs. Monika Sangla and Corporate Guarantee of M/s Kamdeep Marketing Private Limited.

Financial Institutions:	Siemens Financial Services Private Limited, 130, Pandurang Budhkar Marg, Worli, Mumbai-400018, Maharashtra, India
Auditors :
Name :	Ashok Khasgiwala and Company Chartered Accountants
Address :	317, Centre Area, RNT Marg, Indore – 452001, Madhya Pradesh, India
Tel. No.:	91-731-2517341 / 4069301
Memberships :	--
Collaborators :	--
Other parties / Companies where key managerial persons or their relatives have significant influence:	Androit Industries (India) Limited

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs.300.000 Million
5000000	5% Non-Cumulative Redeemable Preferences Shares	Rs.10/- each	Rs.50.000 Million
15000000	2% Non-Cumulative Redeemable Preference	Rs.10/- each	Rs.150.000 Million
	Total		Rs.500.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29187000	Equity Shares	Rs.10/- each	Rs.291.870 Million
5000000	5% Non-Cumulative Redeemable Preferences Shares	Rs.10/- each	Rs.50.000 Million
5400000	2% Non-Cumulative Redeemable Preference	Rs.10/- each	Rs.54.000 Million
	Total		Rs.395.870.000 Million

Reconciliation of number of Equity Shares and amount outstanding :

Particulars	As at 31st March 15
	No. of Shares	Amount
Equity Shares at the beginning of the year	29187000	291.870
Add : Issued during the year	--	--
Equity Shares at the end of the year	29187000	291.870

Reconciliation of number of Preference Shares and amount outstanding :

Particulars	As at 31st March 15
	No. of Shares	Amount
A. 5% Non-Convertible, Non-Cumulative Redeemable Preference Shares
At the beginning of the year	5000000	50.000
Add : Issued during the year	--	--
At the end of the year	5000000	50.000
2% Non-Convertible, Non-Cumulative Redeemable Preference Shares
At the beginning of the year	--	--
Add : Issued during the year	5400000	5.400
At the end of the year	5400000	5.400

Terms / Rights attached to Equity Shares :

The company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding.

Terms / Rights attached to Preference Shares :

5% Non-Convertible, Non-Cumulative Redeemable Preference Shares Preference Shares are Non-Convertible, Non-Cumulative, Redeemable and have a par value of Rs.10/- per share. Each Preference Shareholder is eligible for one vote per share only on resolution affecting their rights and interest. Shareholders are entitled to dividend at the rate of 5% p.a. which is non-cumulative. In the event of liquidation of the Company before redemption the holders of preference shares will have priority over equity shares in the

payment of dividend and repayment of capital.

The Company has allotted 50,00,000 ,5% Non-Convertible, Non-Cumulative, Redeemable Preference Shares of Rs.10/- each on 8th October 2012. The preference shares are redeemable at par, not being after 20 years from the date of allotment, to be decided by the board of directors.

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	395.870	341.870	341.870
(b) Reserves & Surplus	580.905	248.315	135.715
(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)	976.775	590.185	477.585
(3) Non-Current Liabilities
(a) long-term borrowings	595.075	986.438	919.099
(b) Deferred tax liabilities (Net)	124.592	115.706	104.519
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	4.660	2.438	1.840
Total Non-current Liabilities (3)	724.327	1104.582	1025.458
(4) Current Liabilities
(a) Short term borrowings	1035.375	1438.447	1622.241
(b) Trade payables	1822.967	1523.807	1172.621
(c) Other current liabilities	418.257	322.491	251.682
(d) Short-term provisions	20.889	83.524	19.443
Total Current Liabilities (4)	3297.488	3368.269	3065.987
TOTAL	4998.590	5063.036	4569.030
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	813.687	817.376	779.244
(ii) Intangible Assets	0.147	0.000	0.000
(iii) Capital work-in-progress	0.045	1.034	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.651	0.809	76.946
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	53.689	101.736	81.212
(e) Other Non-current assets	15.531	22.054	0.000
Total Non-Current Assets	883.750	943.009	937.402
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1168.529	876.728	729.142
(c) Trade receivables	2275.251	2412.264	2031.064
(d) Cash and cash equivalents	398.244	642.996	678.153
(e) Short-term loans and advances	244.900	161.500	172.336
(f) Other current assets	27.916	26.539	20.933
Total Current Assets	4114.840	4120.027	3631.628
TOTAL	4998.590	5063.036	4569.030

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	6562.664	6124.664	5649.745
	Other Income	69.273	84.088	24.508
	TOTAL (A)	6631.937	6208.752	5674.253
Less	EXPENSES
	Cost of Materials Consumed	1853.905	1574.471	1520.558
	Purchases of Stock-in-Trade	3826.071	3456.528	3234.383
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(247.508)	16.724	22.196
	Employees benefits expense	123.015	96.608	76.489
	Other expenses	438.004	341.397	274.366
	Exceptional Items	(9.243)	0.000	0.000
	TOTAL (B)	5984.244	5485.728	5127.992
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	647.693	723.024	546.261
Less	FINANCIAL EXPENSES (D)	425.873	446.466	309.945
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	221.820	276.558	236.316
Less/ Add	DEPRECIATION/ AMORTISATION (F)	64.506	64.370	60.593
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	157.314	212.188	175.723
Less	TAX (H)	40.279	55.687	56.374
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	117.035	156.501	119.349
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (K)	227.793	119.106	44.849
Less	APPROPRIATIONS
	Transfer to General Reserve	0.000	3.913	2.984
	Proposed Dividend Preferences Shares	0.000	2.500	1.199
	Proposed Dividend Equity Shares	0.000	35.024	0.000
	Interim Dividend Equity Shares	0.000	0.000	35.024
	Tax on Dividend	0.000	6.377	5.885
	Total (M)	0.000	47.814	45.092
	Balance Carried to the B/S (J+K+L-M)	344.828	227.793	119.106
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	0.000	4.301	2.323
	TOTAL EARNINGS	0.000	4.301	2.323
	IMPORTS
	Raw Materials	967.388	953.701	1329.186
	Components and Stores parts	0.158	0.431	1.277
	Capital Goods	4.540	24.963	12.603
	TOTAL IMPORTS	972.086	979.095	1343.066
	Earnings / (Loss) Per Share (Rs.)	4.01	5.26	4.04

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	277.780	192.374	121.150
Cash generated from operations	NA	NA	NA
Net cash flow from operating activity	646.134	428.695	320.772

QUARTERLY RESULTS

Particulars	30.06.2015
UnAudited	1^st Quarter
Net Sales	2017.850
Total Expenditure	1835.740
PBIDT (Excl OI)	182.110
Other Income	6.790
Operating Profit	188.900
Interest	96.550
Exceptional Items	NA
PBDT	92.350
Depreciation	16.550
Profit Before Tax	75.800
Tax	17.510
Provisions and contingencies	NA
Profit After Tax	58.290
Extraordinary Items	NA
Prior Period Expenses	NA
Other Adjustments	NA
Net Profit	58.290

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	1.78	2.56	2.11
Operating Profit Margin (PBIDT/Sales)	(%)	9.87	11.81	9.67
Return on Total Assets (PBT/Total Assets}	(%)	3.15	4.19	3.91
Return on Investment (ROI) (PBT/Networth)		0.16	0.36	0.37
Debt Equity Ratio (Total Debt /Networth)		1.95	4.43	5.57
Current Ratio (Current Asset/Current Liability)		1.25	1.22	1.18

STOCK PRICES

Face Value	Rs.1.00
Market Value	Rs.42.30

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	341.870	341.870	395.870
Reserves & Surplus	135.715	248.315	580.905
Net worth	477.585	590.185	976.775
long-term borrowings	919.099	986.438	595.075
Short term borrowings	1622.241	1438.447	1035.375
Current Maturities of Long-Term Debts	121.150	192.374	277.780
Total borrowings	2662.490	2617.259	1908.230
Debt/Equity ratio	5.575	4.435	1.954

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	5649.745	6124.664	6562.664
		8.406	7.151

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	5649.745	6124.664	6562.664
Profit	119.349	156.501	117.035
	2.11%	2.56%	1.78%

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	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	No
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)	Yes
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	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

The Management Discussion and Analysis forms an integral part of this Report and gives detail of the overall industry structure, developments, performance and state of affairs of the Company’s various businesses viz., the decorative business international operations, industrial and home improvement business, internal controls and their adequacy, risk management systems and other material developments during the financial year

OVERVIEW:

As the third largest consumer of polymers, India ranks only after China and USA. Evaluation of the polymer industry trends reveals strong growth prospects citing the increased usage of plastics across sectors. The sector is projected to grow at the rate of 5.4% in 2014 and 6.5% in 2015 citing the growing demand from various industries. Furthermore, with the key market players integrating more back-end exploration and refining businesses, alongside streamlining their sourcing operations, opportunities are expected to increase in the coming years.

With this change of guard in government, industry will also revive which will also consume lots of pipes in coming

years which is mainly because of demand in agriculture pipes, plumbing pipes and industrial pipes.

Four major factors are contributing to the favorable outlook: shale oil and gas developments, regional market expansion, innovation and increased awareness. PVC pipe demand is projected to accelerate through 2019, reaching 30.3 million metric tons. Through to 2019, HDPE demand is projected to rise 7.2% a year to 17.5 million metric tons.

The Indian Pipe Industry has experienced rapid growth in the last several years. The major reasons for the growth

of this industry is increasing demand for pipes in the irrigation sector, oil and gas sector and also the real estate

industry. The demand for plastic pipes such as PVC and CPVC is also increasing as these pipes are better in quality and durability. Infrastructure development, urbanization and the subsequent development of residential and industrial construction are facilitating the growth of the pipe industry in India.

COMPANY INFORMATION

Subject was incorporated on January 29, 1985 under the Companies Act 1956, having its registered Office in Mumbai. Company is engaged in Merchant Trading of All Kind of Polymers and Other Products and Manufacturing of Micro Irrigation System (DRIP), Sprinkler Pipe / PVC Pipe and Agro fittings and its Allied Products, all type of House Hold and Plastic Moulded Furniture. The Company’s shares are already listed on Bombay Stock Exchange (BSE), Mumbai and also got listed on National Stock Exchange vide letter NSE/ LIST/17898 dated March 11, 2015 issued by National Stock Exchange of India Limited. The Company’s shares are traded on both Bombay Stock Exchange and National Stock Exchange.

UNSECURED LOAN

PARTICULARS	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Intercorporate Deposits	204.380	472.164
Short-term borrowings
Buyers Credit	296.425	530.306
Intercorporate Deposits	5.066	5.000
Total	505.871	1007.470

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10587730	25/07/2015	200,000,000.00	Punjab National Bank	Sitlamata Bazar Main Rd, Cloth Market, Sitlamata, Maharaja Tukoji Rao Holker Cloth Market, Indore, Madhya Pradesh - 452002, INDIA	C62459151
2	10561010	13/03/2015	26,000,000.00	SIEMENS FINANCIAL SERVICES PRIVATE LIMITED	130, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, Maharashtra - 400018, INDIA	C49910466
3	10494215	12/09/2013	4,100,000.00	INDIAN OVERSEAS BANK	MID CORPORATE BRANCH, Scheme 54 Shri Satya Sai Vidhya Vihar Compound, INDORE, Madhya Pradesh - 452010, INDIA	C04150967
4	10429090	06/02/2014 *	110,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21,, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	B96031596
5	10249654	23/09/2010	650,000,000.00	UCO Bank	2/5, 3/5, Girnar Tower, New Palasia Branch, Indore, Madhya Pradesh - 452003, INDIA	A97942387
6	10249650	28/08/2015 *	2,950,000,000.00	UCO Bank	2/5, 3/5, Girnar Tower, New Palasia Branch, INDORE, Madhya Pradesh - 452001, INDIA	C62968409
7	10225832	03/06/2010	1,155,000,000.00	UCO BANK	NEW PALASIA, 2/5, 3/5, GIRNAR TOWER, INDORE, Madhya Pradesh - 452001, INDIA	A88279336
8	10225833	03/06/2010	400,000,000.00	UCO BANK	NEW PALASIA, 2/5, 3/5, GIRNAR TOWER, INDORE, Madhya Pradesh - 452001, INDIA	A88279708
9	10194509	26/12/2009	100,000,000.00	UCO BANK	NEW PALASIA BRANCH, 2/5, 3/5, GIRNAR TOWER, INDORE, Madhya Pradesh - 452001, INDIA	A76372499
10	10093164	31/12/2009 *	1,075,000,000.00	UCO BANK	NEW PALASIA, 3/5, GIRNAR TOWER, INDORE, Madhya Pradesh - 452001, INDIA	A76837244

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30^TH JUNE 2015

(Rs. In Million)

Particulars	Quarter Ended ( Unaudited)
	30.06.2015
1. Income from operations
a) Net sales/ Income from operation (net of excise duty)	2012.497
b) Other operating income	5.350
Total income from Operations(net)	2017.847
2.Expenses
a) Cost of material consumed	492.910
b) Purchases of stock in trade	1122.754
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	72.504
d) Employees benefit expenses	32.333
e) Depreciation and amortization expenses	16.551
f) Other expenses	115.238
Total expenses	1852.290
3. Profit from operations before other income, finance costs and Exceptional Items	165.557
4. Other income /(Loss)	6.785
5. Profit/(loss) from ordinary activities before finance costs and exceptional items	172.342
6. Finance costs	96.546
7. Profit/(loss) from ordinary activities after finance costs but before exceptional items	75.796
8. Exceptional item	--
9. Profit / (Loss) from ordinary activities before tax Expense:	75.796
10.Tax expenses	17.505
11. Excess/Short Provision for earlier years	--
12. Net Profit / (Loss) from ordinary activities after tax	58.291
13.Extraordinary Items (net of tax expense)	--
14.Net Profit / (Loss) for the period	58.291
15.Paid-up equity share capital (Face value Rs.10/- per share)	291.870
16. Reserve excluding Revaluation Reserves (As per balance sheet of previous accounting year)	--
17. Basic and Diluted EPS (Not annualized)	2.00

Particulars	Quarter Ended ( Unaudited)
	30.06.2015
A. Particulars of shareholding
1. Public Shareholding
- Number of shares	7776000
- Percentage of shareholding	26.64
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	--
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	--
Percentage of shares (as a % of total share capital of the company)	--
b) Non Encumbered
Number of shares	21411000
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00
Percentage of shares (as a % of total share capital of the company)	73.36
B. Investor Complaints
Pending at the beginning of the quarter	--
Receiving during the quarter	--
Disposed of during the quarter	--
Remaining unreserved at the end of the quarter	--

UNAUDITED SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Million)

Particulars	3 Months Ended ( Unaudited)
	30.06.2015
1. Segment Revenue
a. Manufacturing	864.561
b. Windmill	3.551
c. Trading	1149.738
d. Unallocable	6.782
Total	2024.632
2. Segment Result (Profit before Interest and Tax)
a. Manufacturing	149.897
b. Windmill	1.897
c. Trading	18.185
d. Unallocable	2.363
Total	172.342
Less : (i) Interest	96.546
(ii) un-allocable expenditure	--
Profit before Tax / Exceptional Items	75.796
Less: Exceptional Items	--
Total Profit Before Tax	75.796
3. Capital Employed (assets and liabilities)
a. Manufacturing	2175.948
b. Windmill	79.666
c. Trading	710.431
d. Unallocable	(1900.979)
Total	1065.066

CONTINGENT LIABILITIES:

(Rs. in million)

PARTICULARS	31.03.2015	31.03.2014
Income Tax/Sales tax/Excise Duty Demand Disputed in appeal (Amount deposited Rs.8.164 Million Previous year Rs.0.559)	120.599	331.856
Corporate Guarantee given on behalf of others	100.000	100.000

FIXED ASSETS

• Land - Free hold
• Land - Lease hold
• Building
• Plant and Machinery
• Windmill
• Furniture and Fixtures
• Office Equipments
• Vehicle
• 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.64.82
UK Pound	1	Rs.100.41
Euro	1	Rs.75.50

INFORMATION DETAILS

Information Gathered by :	SUP
Analysis Done by :	KAR
Report Prepared by :	SUD

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.