MIRA INFORM REPORT

Report Date :

24.06.2008

IDENTIFICATION DETAILS

Name :	SUPREME INDUSTRIES LIMITED

Registered Office :	612, Raheja Chambers Nariman point, Mumbai - 400021, Maharashtra

Country :	India

Financials (as on) :	30.06.2007

Date of Incorporation :	17.02.1942

Com. Reg. No.:	11-003554

CIN No.: [Company Identification No.]	L35920MH1942PLC003554

TAN No.: [Tax Deduction & Collection Account No.]	MUMT01228D

Legal Form :	Public Limited Liability Company. The shares of the company are listed on the Stock Exchanges.

Line of Business :	Manufacturers of PVC Pipes & Fittings, Material Handling Crates and Plastic Moulded Chairs.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 11320370

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well-established and reputed company of Supreme Group, controlled and managed by Taparia’s. The company’s shares are listed on the Stock Exchanges. Available information indicates high financial responsibility of the company. Financial position of the company is good. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	612, Raheja Chambers, Nariman Point, Mumbai - 400 021, Maharashtra, India
Tel. No.:	91-22-2285 1656
Fax No.:	91-22-2285 1657
E-Mail :	supremenpt@supreme.co.in investor@supreme.co.in
Website :	http://www.supreme.co.in

Corporate Office :	1101, 1106, Solitaire Corporate Park, 167, Guru Hargovindji Marg, Andheri Ghatkopar Link Road, Andheri (E), Mumbai - 400 093, Maharashtra, India
Tel. No.:	91-22-4043 0000
Fax No.:	91-22-4043 0099

Factory :	v Daman ( Union Territory ) v Derabassi ( Punjab ) v Durgapur ( West Bengal ) v Guwahati ( Assam ) v Halol ( Gujarat) v Hosur ( Tamil Nadu ) v Jalgaon ( Maharashtra ) v Kanhe ( Maharashtra ) v Kanpur ( Uttar Pradesh ) v Khopoli ( Maharashtra ) v Khushkheda ( Rajasthan ) v Malanpur 1 ( Madhya Pradesh ) v Malanpur 2 ( Madhya Pradesh ) v Nandesari ( Gujarat) v Noida ( Uttar Pradesh ) v Pondicherry ( Union Territory ) v Silvassa ( Union Territory )

Branch Office:	Located at: v Ahmedabad v Bangalore v Chennai v Cochin v Hyderabad v Indore v Kolkata v Mumbai v New Delhi

DIRECTORS

Name :	Mr. B L Taparia
Designation :	Chairman

Name :	Mr. M P Taparia
Designation :	Managing Director

Name :	Mr. S. Taparia,
Designation :	Executive Director

Name :	Mr. V K Taparia,
Designation :	Executive Director

Name :	Mr. B V Bhargava
Designation :	Director
Date of Birth/Age :	16.04.1936
Qualification :	M. Com., L.L.B
Date of Appointment :	25.09.1996

Name :	Mr. E B Desai
Designation :	Director
Date of Birth/Age :	01-04-1931
Qualification :	B A., L.L B. (Hons)
Date of Appointment :	30.08.2003

Name :	Mr. H S Parikh
Designation :	Director

Name :	Mr. N N Khandwala
Designation :	Director

Name :	Mr. S R Taparia
Designation :	Director

Name :	Mr. Y P Trivedi
Designation :	Director
Date of Birth/Age :	06.01.1929
Qualification :	B Com L. L. B.
Date of Appointment :	30.08.2003

KEY EXECUTIVES

Name :	Mr. O P Roongta
Designation :	Senior Vice - President (Finance) and Secretary

Name :	Mr. J M Totla
Designation :	Senior Vice - President (Operations)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2007

Names of Shareholders	No. of Shares	Percentage
Promoters	12424878	44.98
Non Residents Individuals / OCB	1019025	3.69
Companies	3248497	11.76
Fll's / Fl's / Mutual Fund / Bank	41775	0.15
Individuals	10887499	39.42
Total	27621674	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of PVC Pipes & Fittings, Material Handling Crates and Plastic Moulded Chairs.

Products :

Product Description	Item code No:
PVC Pipes and Fittings	39172309 39174000
Material Handling Creates	39239000
Plastic Moulded Chairs	94018000

v Moulded Furniture

v Moulds

v Storage and Material Handling Crates

v Petrochemicals

v Cross Laminated Films and Products

v Food Service ware

v Packaging Films

v Industrial and engineering Moulded Products

v Calendered Rigid PVC Films

v Protective Packaging Products

v Plastics Piping Systems

Exports :

Countries :

v Middle East

v Sri Lanka

v UK

v Australia

v USA

v Singapore.

Imports :

Countries :

v Singapore

v Kuwait

Terms :

Selling :

Advance Payment or Credit (60 days)

Purchasing :

Credit (30/60 days) or Cash

PRODUCTION STATUS

As on 30.06.2007

Particulars	Unit	Installed Capacity	Actual Production
Injection Moulded Products	MT	61500	37847.584
Extruded Products	MT	119842	87558.447
Machinery & Moulds	Nos	NA	860

GENERAL INFORMATION

No. of Employees :

2500

Bankers :

v Central Bank of India, Fort, Mumbai 400 023, Maharashtra, India

v State Bank of India

v Bank of India

v ING Vysya Bank

v BNP Paribas

v ICICI Bank Limited

v Bank of Baroda

v IDBI Bank Limited

v Axis Bank Limited

v Vijaya Bank

Facilities :

SECURED LOANS	30.06.2007 (Rs. in millions)	30.06.2006 (Rs. in Millions)
A. WORKING CAPITAL LOANS From Banks - Rupee Loans	15.320	397.020
B. TERM LOANS
(a) IDBI Limited - Foreign Currency Loan - Rupee Loan	6.790	38.358
(b) ICICI Bank Limited - Foreign Currency Loan	95.060	156.791
(c) Bank of India - Foreign Currency Loan	0.000	0.000
(d) ABN Amro Bank - Foreign Currency Loan	0.000	166.813
(e) State Bank of Hyderabad - Rupee Loan	63.772	233.153
(f) State Bank of India - Rupee Loan	140.000	200.000
(g) Cooperatieve Centrale Raiffeisen Boerenieenbank B.A. (Rabobank) - Foreign Currency Loan	0.000	61.373
Vijaya Bank – Rupee Loan	450.000	0.000
(h) Vijaya Bank - Foreign Currency Loan	0.000	74.877
(i) United Bank of India - Rupee Loan	41.668	124.980
(j) State Bank of Patiala - Rupee Loan	0.000	99.867
(k) Federal Bank Limited	61.904	134.694
(I) HDFC Bank – Foreign Currency Loan	407.400	0.000
(m) GE Capital Services of India – Rupee Loan	450.000	0.000
(n) State Bank Of Hyderabad – Rupee Loan	174.056	0.000
(o) State Bank of Mysore – Rupee Loan	106.887	0.000
Total	2012.857	1687.926

Notes:

1. Working Capital Loans from Banks (A) are secured against hypothecation and/or pledge of stocks and Book Debts, second / subservient charge on all movable plant and machinery and moulds (except plant, Machinery and moulds (except plant, machinery and moulds at PVC Film, Malanpur Unit) and certain immovable fixed assets of the company.

2. Term Loans from financial institutions and banks are secured to be secured on first pari passu charge basis on:

(a) Immovable properties of the company, situated at various locations, both present & future, subject to the exclsuion of properties at Andheri, Jalgaon, Malanpur and Kolkata:

(b) movable properties such as plant, machineries and moulds of the Company, both present and future, (excluding current assets charged to bankers for working capital) and second / subservient charge on current assets of the Company.

3. These loans are personally guaranteed by three directors which is counter guaranteed by the company.

Unsecured Loan	30.06.2007 (Rs. in millions)	30.06.2006 (Rs. in Millions)
Fixed Deposits	270.326	186.942
Commercial Paper (maximum amount during the Rs. 850.000 millions) Previous year Rs. 700.000 millions)	0.000	500.000
Total	270.326	686.942


Banking Relations :	Good

Auditors :
Name :	Chhogmal and Company Chartered Accountants

Associates/Subsidiaries :	v Supreme Petrochem Limited v Supreme Capital Management Limited v Multiplayer Films Private Limited v Varali Investment and Trading Company Private Limited v Jagatguru Investment and Trading Company Private Limited v Balabheem Investment and Trading Company Private Limited v Platinum Granite Private Limited v Platinum Plastics & Industries Private Limited v Suraj Packaging Private Limited v Supreme Industries (Goa) Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
3,00,00,000	Equity Shares	Rs.10/- each	Rs. 300.000 Millions
1,12,00,000	Preference Shares	Rs.10/- each	Rs. 112.000 Millions
3,38,00,000	Unclassified Shares	Rs.10/- each	Rs. 338.000 Millions
	Total		Rs. 750.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,38,10,837	Equity Shares	Rs.10/- each	Rs. 138.108 millions
1,38,10,837	Equity Shares	Rs.10/- each	Rs. 138.108 Millions
	Total		Rs. 276.216 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.06.2007	30.06.2006	30.05.2005
SHAREHOLDERS FUNDS
1] Share Capital		276.217	138.108	133.908
2] Share Application Money		0.000	0.000	8.400
3] Reserves & Surplus		1987.857	1866.200	1977.222
4] Accumulated Losses		0.000	0.000	0.000
NETWORTH		2264.074	2004.308	2119.530
LOAN FUNDS
1] Secured Loans		2012.857	1687.926	2008.970
2] Unsecured Loans		270.326	686.942	456.384
TOTAL BORROWING		2283.183	2374.868	2465.354
DEFERRED TAX LIABILITIES		473.320	428.320	0.000

TOTAL		5020.577	4807.496	4584.884

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		3365.898	3267.677	3012.209
Capital work-in-progress		865.654	324.873	25.597
Assets held for disposal		308.667	NA	NA

INVESTMENT		341.786	339.723	347.834

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1102.221	982.692	746.235
	Sundry Debtors	1252.174	1118.291	899.605
	Cash & Bank Balances	142.265	77.079	75.162
	Loans & Advances	556.280	423.463	579.180
Total Current Assets		3052.940	2601.525	2300.182
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2733.778	1512.398	1075.363
	Provisions	180.590	213.904	25.575
Total Current Liabilities		2914.368	1726.302	1100.938
Net Current Assets		138.572	875.223	1199.244

MISCELLNEOUS EXPENDITURE		0.000	0.000	0.000

TOTAL		5020.577	4807.496	4584.884

PROFIT & LOSS ACCOUNT

PARTICULARS		30.06.2007	30.06.2006	30.06.2005
Sales Turnover		11616.606	9820.639	8241.301
Other Income		66.676	46.662	0.000
Total Income		11683.282	9867.301	8241.301

Profit/(Loss) Before Tax		630.450	336.311	257.034
Provision for Taxation		233.400	(103.700)	20.500
Profit/(Loss) After Tax		501.536	399.582	236.534

Earnings in Foreign Currency :
	Other Earnings	835.900	841.992	654.218
Total Earnings		835.900	841.992	654.218

Imports :
	Raw Material and Consumed	2900.589	1778.573	991.409
	Stores & Spares	3.947	2.714	10.813
	Capital Goods	295.116	190.925	107.663
Total Imports		3199.652	1972.212	1109.885

Expenditures :
	Cost of Materials	7795.648	6518.495	NA
	Manufacturing Expenses	2524.668	2329.481	NA
	Interest	330.057	269.604	NA
	Depreciation & Amortization	402.459	413.410	NA
	Other Expenditure	0.000	0.000	7984.267
Total Expenditure		11052.832	9530.990	7984.267

QUARTERLY RESULTS

PARTICULARS	30.09.2007	31.12.2007	31.03.2008
Type	1st Quarter	2nd Quarter	3rd Quarter
Sales Turnover	2540.300	2880.800	3262.000
Other Income	13.300	62.400	13.200
Total Income	2553.600	2943.200	3275.200
Total Expenditure	2241.600	2577.500	2946.600
Operating Profit	312.000	365.700	328.600
Interest	82.800	85.900	110.800
Gross Profit	229.200	279.800	217.800
Depreciation	90.800	91.100	101.700
Tax	45.500	58.000	30.000
Reported PAT	92.900	130.700	82.600

KEY RATIOS

PARTICULARS	30.06.2007	30.06.2006	30.06.2005
Debt-Equity Ratio	1.11	1.19	1.11
Long Term Debt-Equity Ratio	0.89	0.90	1.02
Current Ratio	0.88	1.11	1.61
TURNOVER RATIOS
Fixed Assets	1.71	1.53	1.58
Inventory	11.14	11.36	14.25
Debtors	9.80	9.73	10.95
Interest Cover Ratio	2.86	2.19	1.98
Operating Profit Margin(%)	11.78	10.42	9.79
Profit Before Interest And Tax Margin(%)	8.32	6.19	5.57
Cash Profit Margin(%)	7.14	6.88	6.76
Adjusted Net Profit Margin(%)	3.68	2.65	2.54
Return On Capital Employed(%)	21.80	13.66	12.06
Return On Net Worth(%)	20.32	12.85	11.67

LOCAL AGENCY FURTHER INFORMATION

Director’s Report

PROPERTY DEVELOPMENT:

The Company has commenced construction of a Commercial Complex at its Site at Veera Desai Road, Andheri (West), Mumbai since December 2006 and the construction activity is in full swing. The construction work of 1st level basement is completed and the work of 2nd level basement is nearing completion. The total area being constructed would be around 2,10,000 square feet, apart from 350 cars parking space at basement level. The entire complex consisting of 10 floors is likely to be ready for occupation during the last quarter of 2008. Capital Expenditure incurred on the project till 30.06.2007 is Rs. 322.400 millions

MANAGEMENT DISCUSSION AND ANALYSIS:

SUPREME PETROCHEM LIMITED (SPL):

Supreme Petrochem Limited (SPL), a company jointly promoted by the company and R Raheja Group, is progressing well on their plan to set up a large EPS manufacturing plant at Amdoshi and to put up a minor port at Dherand. That company is also putting up a SEZ, specifically to promote export of plastics goods. The work on the SEZ is moving smoothly. That company is expanding it's capacity to make compounds mostly for automotive requirement. SPL's subsidiary unit at Chennai - SPL Polymers Limited - had a major fire. The plant had to stop production. They are now rebuilding the same on a bigger scale at the same site.

SUBSIDIARY COMPANY:

With a view to expand its business in gulf countries, the Company has promoted The Supreme Industries Overseas (FZE)., a wholly owned subsidiary of the Company, incorporated in SAIF Free Zone, UAE by investing a sum of AED 150,000 (equivalent to Rs 1.888 millions).

OVERVIEW:

The Indian economy is on a robust growth path. During the last three years the GDP have grown on an average exceeding 8.6%. In the year under review, the GDP has crossed 9.43% for the first time in the history of the Indian economy.

Indian Economy is one of the fastest growing in the world today. It has tremendous potential which is attracting global investors to invest in several segments of the economy.

Encouraged by the overall economic growth, the Company has made an investment plan of Rs. 2400.000 millions for the year 06-07 and 07-08. A sum of Rs. 1320.000 millions have already been spent during the year 06-07. Major Capital Expenditure was incurred for the following;

1. Establishing a mega plastics product complex at Gadegaon near Jalgaon which will manufacture varieties of plastics pipe products, Pallets, Crates, Furniture and Fabricated products from Cross laminated film.

2. Setting up a new facility at Urse- near Pune - to produce high technical protective packaging products.

3. To enhance the Injection Moulding capacity at plants in Durgapur, Lalru, Talegaon, Pondicherry, Noida and Khushkheda.

4. Acquiring moulds for new products in Furniture and Crates.

5. To boost the capacity of Cross laminated films and products at Halol and Silvassa.

The Company is building up an ultra modern commercial complex at Veera Desai Road, Andheri West. Two level basement areas are nearing completion. This shall be ten storey commercial complex with an office space of around 2,10,000 sq. ft. with a two level of basements for 350 car parking. The Company has incurred a capital expenditure of Rs 322.400 millions up to 30.6.07. The whole complex should be ready for occupation in the last quarter of 2008.

The Company sold the development rights of Salt Lake area. The proceeds of Rs 120.300 millions received have been accounted as extra ordinary income net of cost and expenses in the year under review.

The company has also decided to quit from those segments where their product range is not differentiated, viz. Rigid PVC film at Malanpur and FSW division at Daman. Turnover of both the Divisions aggregated to Rs. 805.300 millions in the year under review. The Company has entered into an arrangement for proposed sale of plant and machinery of RIGID PVC film and also started manufacturing of PVC film under toll manufacturing arrangements for the buyer with effect from 1.5.07. Operations at FSW Division at Daman have been discontinued and most of the assets have since been disposed off. This restructuring should improve the working in the year 07-08.

The Company also intends to sell it's Pondy Unit I building which is presently rented out. The Company expects this to materialise during current year 07-08. The Company is also exploring the possibility of disposing off some other unit which is not giving adequate return. If the Company decides to divest those assets, the Company may realize around Rs. 900.000 millions for assets already sold in 06-07 and are going to be divested in the year 07-08. These divestments will also release working capital blocked in these product segments. The company expects to accelerate its presence in the segments where Supreme Brand commands high respect.

INDUSTRY STRUCTURE AND DEVELOPMENT:

Plastics permeate entire segment of Indian economy. The Company operates in most of the critical segments such as Agriculture, water supply, Housing, Protective Packaging, Consumer appliances, automotive parts and material handling system.

Though the Indian GDP growth in the previous three years was over 8.6%, the consumption of plastics has not grown more than 7.5%. This was principally due to high incidence of indirect taxes on Plastics products and reservation of several products in the Small scale sector.

In the previous year, the Government has moved in a positive manner to increase the consumption of plastics. Several Plastics products have been put in lower bracket of VAT rate of 4%. VAT was introduced in most parts of the country during the year. CST rate was reduced from 4% to 3% with the avowed declaration that this tax will be phased out over the period.

Majority of the plastic items have been dereserved. A National Policy on Petrochemicals was also adopted by the Cabinet with a firm commitment to take several initiatives to boost the consumption of Plastics in the coming years at a much faster rate.

These initiatives will go a long way to open several new opportunities for the Company in the existing segments where they are operating. The company is preparing itself to avail of the new opportunities which are opening up.

The net turnover of the company under review was Rs. 11683.300 millions (including Rs 720.600 millions by way of Polymer trading and other non Plastics products) as against Rs. 9867.300 millions (including Rs. 632.200 millions by way of Polymer trading and other non-plastics products) of the previous year.

The Company has processed 130,547 tons of Polymers as against 118,115 tons of Polymers in the previous year. This reflects a growth of 10.53% in Polymer consumption.

The Company exported goods worth US $ 19.16 million as against US $16.76 million in the previous year registering a growth of 14.32%.

Profit before depreciation and exceptional items and taxes during the year under review have gone up by 37.79% from Rs. 749.700 millions to Rs. 1032.900 millions during the year.

COMPANY'S STRENGTH AND GROWTH DRIVERS:

(a) Manufacturing sites:

The Company has 16 manufacturing sites located at various places widely spread in the country. Supplies will commence from Urse and Gadegaon by October 07. This should further strengthen the Company's ability to provide cost effective solutions for it's customers.

(b) Distribution Network:

The Company considers its distributors as its partners in progress and has built up excellent relationship with them. The Company is continuously adding to the list of distributors. The Company provides training to it's distributors and their team members to ensure proper service to the ultimate customers.

(c) Growth Drivers:

The Company is continuously innovating to increase share of specialty products in each products segment to meet demanding specifications from it's end users. The proportion of such business is growing in each product segment.

OPERATIONAL PERFORMANCE:

PLASTICS PIPING SYSTEMS:

In line with the application of piping products, the Company intends to categorize it's products into two broad main categories, namely;

a) Building and Installation: This will have products used above ground level. This will include SWR System, Aqua gold system, PPR system, ASTM Threaded Pipe, Plumbing Pipes used for hot and cold water connections. The Company has five systems in this category. The Company is adding two new systems in the current year. One for rainwater harvesting and one additional for Hot and Cold water plumbing.

b) Civil & Infrastructure: They comprise mainly products used below ground level. This will include pipes used for Drinking water supply, Irrigation, casing and submersible pipes, Underground Drainage. Storm water system and Sewage system. The Company's current product range is further classified in separate systems. The Company presently supplies four systems. They have proposal to add two new systems in this category in the current year, one for Gas distribution and the other for Industrial usage.

The company's range is unparalleled in it's scope and last year registered a growth of over 25%. The Company is 'Total Solution Provider' with it's rich experience supported by highly qualified technical team. The Company is able to meet exacting functional requirement for the user constituent.

Hot & Cold Water Application (PPRC):

In the Hot & Cold water plumbing segment, presently the Company has only products made from PPRC (Polypropylene Random copolymer) material.

The Company has registered a growth of 70% in the sale of PPRC products during the year 2006-07.

The Company's products are now certified by Water Regulation Advisory scheme (WRAS) of U.K. - an International body - to certify the pipes for its quality for use in drinking water and meet 100% hygiene requirement.

Industrial Segment:

The Company has launched complete range of 160 mm products. This will go a long way to benefit the user in Industrial sectors. They are the only company using Bodycoat certified material in the production of these products.

Aqua gold System:

These are UPVC products used for cold water plumbing application. Presently most of the consultants are also recommending these products for Roof water distribution and down take system used in multistoreyed apartments.

ASTM Threaded Pipes:

These pipes were initially introduced to replace GI pipes. They have superior properties and functional usage over GI pipes. Along with Aquagold system, they are growing in excess of 15% per annum.

Both ASTM threaded pipes and Aqua gold pipes are now introduced with lead and tin free stabilizers. This is in line with the objective to improve the potable water quality where the system finds extensive usage.

b) CIVIL AND INFRASTRUCTURE:

Irrigation:

With the increasing thrust of Government to bring more areas under irrigation UPVC pipes are making more and more inroads in the applications. The Company supplies entire system upto 450mm dia. Due to it's superior quality and durability the Company's products enjoy excellent loyalty from farmers for agricultural usage.

Drinking water supply schemes:

The usage of UPVC pipes in potable water supply schemes is increasing exponentially as encrustation which is a bane in GI pipes are very less in UPVC pipes. The Company is successfully participating in several Government and other agencies' supported projects for this application.

Casing and Submersible pipes:

The Company offers complete systems for underground water pumping requirements to meet requirements of this application.

Storm water and Drainage system:

The Company has wavihole pipes for the applications which give value for money to the users. The Company has also established foam core multilayer pipes for use on storm water and drainage application. The product was approved by a Certifying Agency from Australia. The products are regularly exported to Australia and New Zealand markets.

Sewerage Pipes:

The Company has introduced cost effective eco-drain pipe range from 1 1 Omm to 315mm for this application. The system is replacing currently used material i.e. stonware pipes-CI pipes with longer service life at an economical cost. At Gadegaon, the Company will launch PE pipe system also for the same application.

In this broad application, the Company will add Gas handling system and range of products required for handling industrial effluents.

The Company's focus is to provide superior cost effective solution in broad spectrum by replacing conventional Piping material with plastics pipe system. All the applications are functional and the Company has large range of speciality products in all these nine systems. In the year under report the Company had 12.7% turnover by value of such specialty products portfolio. The Company aims to increase it to about 18% in the next three years.

The Company has invested around Rs. 500.000 millions at Gadegaon. The project is being implemented over 131 acres of land. The first phase will be commissioned by October 07. The complete project should be operational by September 2009.

The Kanpur plant has acquired BIS certification license to mark both Agri Pipes and SWR pipes with IS] mark. The quality of pipes manufactured at Kanpur is well received in the market and the Company sold nearly 1900 MT of pipes in UP and surrounding areas during the year under review. The Company expects to utilize it's full capacity of 4000 tons during the year 2007-08.

The Company's exports during the year 2006-07 stand at 3345 MT compared to export of 3130 MT in 2005-06. The Company's wholly owned subsidiary at SAIF Zone in Sharjah has been able to establish its presence in UAE markets. The Company's products have been approved by major consultants and contracting firms. The Company could execute some prestigious projects to the full satisfaction of the customers. The Company hopes to improve business in projects in years to come in and around UAE.

In the year 07-08, the Company will also launch Rainwater harvesting profile with accessories to conserve rain water. The Company also intends to launch Gratings and Channel in profile to cater to the drainage and sewerage requirements in the coming year.

CONSUMER PRODUCTS:

FURNITURE:

Turnover of Furniture Business has gone up from Rs. 1330.000 millions to Rs. 1380.000 millions. The company continues to concentrate on its furniture manufacturing activity at 4 locations viz: Pondicherry (Union Territory), Durgapur (West Bengal), Lalru (Punjab) and Guwahati (Assam).

The Company is focusing to broaden the range of value added furniture products, which help to build the superior brand image of the Company's products for its durability and aesthetics. Such products command better price realization and are relatively less affected by raw material cost volatility. Company increased the Premium Item Range by launching new products during the year. Company is the only supplier of Painted Upholstered Plastics Chairs. There has been a growth of more than 45% on sale of premium products compared to last year. More over the share of such products sale had gone up to 19% in value during the year under review. The Company intends to increase its share of such products to 30% in the next two years.

The Company has set up few Exclusive Showrooms displaying entire range of Supreme Furniture in a pleasant ambience. The current number of eight exclusive show rooms will be increased to 22 by the end of next year.

The Company also started few Model Showrooms giving better display of Supreme Furniture range. The Company intends to increase such display in the coming years at more locations.

The Company's furniture products enjoys good acceptance in the market for its quality, design, colour and range. Supreme brand is perceived as a premium brand in the country.

MAT BUSINESS:

Sales were up by 7% over that of the last year. The division continues to focus on exports. The demand for exports is good. As a result, the Company has increased its production capacity by 15%. This is expected to be in full production by the end of Aug, 2008. They expect the Division to grow by 10% this year.

INDUSTRIAL PRODUCTS:

This was another year of better demand for Industrial products. Improved Business in Automotive, Household & Consumer Electronics has pushed up growth to more than 20% in sales revenue over that of the previous year. A major order of Electronic Voting Machine parts was executed in a record time. Company performed quite well in all its industrial products segments like Automotive, Consumer electronic, Household Appliances and EVM parts.

The Company expects further improvement in demand during the current year. The Company added to its list Mahindra & Mahindra as an OEM customer. This is expected to result in improved business in the current year.

The capacity expansion, which was carried out at Noida and Talegaon during the previous year has fully gone into production. Improved demand resulted in better capacity utilization at all the plants.

Khushkera factory at Rajasthan was relaid, modified and modernized to manufacture only auto components. The supplies of these products has commenced from Nov'06. The facility at Pondicherry factory has also been relaid, so that industrial products can be separated from other product divisions. This has resulted into better administration at factory level.

The expansion of Pondicherry unit was completed and has resulted in improved sales revenue. The Company has taken and is in the process of taking various actions to increase Value Added Business by improving in-house PU painting capabilities and doing sub-assembly for auto parts.

Supplies of industrial products from Durgapur unit have been fully streamlined. The Company may consider expansion at Durgapur in view of expected increase in demand of Auto Parts.

The Company is focusing in implementation of QMS and EMS at all locations in the Industrial Products Division. During the year, Noida and Talegaon plant were Certified for TS 16949 and Khushkera plant was certified for IS0:14001. During the current year, as per the Company plans, all five locations of this division will be certified for QMS and EMS.

The Company is embarking on various Re-engineering measures in Industrial Products Division to achieve the Divisional Mission of becoming world class Injection Moulded Components and Assembly System Supplier. Towards achieving the goal, some of the actions on anvil are:

a) Capacity and Capability enhancement through adding bigger capacity machines to facilitate moulding of large parts,

b) Augumention and expansion of paint shops at all locations,

c) Improving Capability in PU painting,

d) Replacement of old and inefficient machines by modern and efficient machines,

e) Putting up Centralized Design and Technical Centre to cater to the needs of OEMs to offer Total Plastic Parts Solutions,

f) Establishing modern Quality Control Labs,

g) Installation of improved material handling and storage systems to facilitate effective Inventory Management

h) Training and development of Human Resources.

MATERIAL HANDLING DIVISION:

The Company achieved a growth of about 48% in volume terms and approx. 43% in value terms over that of the last year for material Handling business. The Company broadened the range of Material Handling division by incorporating Pallets and Mobile Dustbins.

The Company launched many newer models of Trade Crates for varying applications during the year from different manufacturing locations. The is the only Company giving Trade Crates from six owned manufacturing sites spread across the country to cater to All India market and none of the competitors has so many of their own production facilities. This helps the Company in servicing the clients in least lead time at very economical cost with full assurance of quality.

The Company has set up fabrication facility (post moulding activities to add values) to cater to tailor made needs of the customers not only in the manufacturing locations but also at one other centre which will be increased to four in the current year. These are value added products for the customers. Such products constitute 13% of the Company's Turnover by value. Considering increasing specific requirements coming from customers, it is expected that the same may become 25% of the Company's turnover within this year.

The Company also started supplies of Collapsible Crates and Pallets to a major brand of fruits and vegetable retail Showroom sector which is growing in a big way all over India. The Company is planning to launch many new models in Trade Crates to cater to the functional requirements of broad spectrum of users in the current year.

The Company is starting a new production facility in the upcoming complex at Gadegaon near Jalgaon. This facility should be fully operational by beginning of 2008. This will help the Division to meet Western Zone customer's demand in a cost efficient manner.

The Company imported different models to cater to various applications with the objective of test marketing Pallets in India. The Company is also the first Company to launch Injection Moulded Pallet in India by installing its biggest capacity Injection Moulding Machine with the capacity of 2800 Tons to the full satisfaction of it's customers. The Company has also decided to broaden the range by introducing newer models to cater to specific needs including Roto Moulded Pallets and crates in the coming year.

PACKAGING PRODUCTS:

PACKAGING FILMS:

The Company is working to be a differentiator in this product segment as it is a small player in overall market size of this product in the country's economy.

The Company's technical and marketing team are working on newer applications to make breakthrough with the objective of being a niche supplier.

At a smaller volume, the Company desires to be a supplier of only higher value added products, to utilize it's installed capacities to justify the investment made in this business.

PROTECTIVE PACKAGING PRODUCTS:

Continuous efforts have been made during the year to stabilise the vision 'of being a cost effective solutions provider in the areas of packaging and cushioning, civil and insulation'. Business focus of the Division has now shifted equally to civil & insulation. The business model adopted is to develop/market a large variety of foam products and other composite materials, which suits the above applications. The present level of business in civil & insulation is 10% & they expect to take this to around 30% over the next few years. The plant to manufacture two stage cross-linked foam was established in October, 2006 with the technical collaboration of Sanwa Kako of Japan. Work is on to develop several new applications. The Company hopes to utilise full capacity before Dec 2008. The Division also finalised a tie up with Sapac of Belgium, a Company manufacturing specialised equipments and instant packaging material made from liquid Polyurethane. This has been introduced in the Indian market. The Company expects to be selling a large number of these systems, this year.

Extruded chemically cross linked foam (XLC) has been well established for the civil & insulation markets. The Division has imported large volumes of materials to establish the market and it will start manufacturing this at its new facility at (Urse) near Pune by October. This shall add substantially to the overall growth of the Division. Conversion & Fabrication are the essence of the business. The Company aims to plan to introduce this product in several new packaging & automotive applications.

The Company expects this capacity to be sold out soon. Besides, these products are extensively exported to Europe from Taiwan & Korea. The Company will be logistically better off in servicing these market. Initial studies have revealed a good potential.

Two stage xlpe (Litecell) is slowly finding acceptance in several new applications. The Company's experience of manufacturing XLPE for several years has enabled it to make tailor made products for several applications. The Company expects the present capacity to be fully utilised by Dec 2008

New fabrication facilities will be fully established in several towns, to cater to the packaging needs of customers in those areas. Being a freight intensive product & the need of just in time by customers requires the Company to be closer to the customers.

Business Development:

Headed by a senior technical person, the Company now has several engineers working for the above new products and the other value added products, which are developed from the manufacturing unit. The total team is now focused for packaging, Gasket and other automobile applications to take forward the packaging business to a higher level.

The Division is constantly working to upgrade its technology base.

Technology - New Products and applications:

A qualified polymer technologist is now providing necessary support to Protective Packaging Division's team. During the year the in house R and D developed the following products.

* VCI Foam and film

* EPDM foam

* Foam from natural rubber mixed with polymers for a special automotive application

* A specialty bubble film laminate for under deck insulation conductive & antistatic bubble composites

* Orthopedic grade capcell

This team is continuously working on several new products & expects to establish several value added products

in this year.

These efforts are expected to take the turnover of Specialty products and solutions from 25% of this Division's turnover to 40% in the next three years.

Technology - Cost effective Solutions:

Foam Density: The density of the EPE foam was reduced from 23 kgm cum to 18 kg per cum without impacting major properties, thereby increasing the value addition & also offering a reduced price to the customers. While processing, in terms of tonnage, dropped quite a bit, the overall sales grew and is expected to grow further this year. The target for this year is to further increase the usage of its own recycling of XLPE scrap from 30% of scrap generated to over 50% this year. This would be a significant achievement considering that this is a thermoset material.

The Engineering Division of the Protective Packaging Division's team continues to add value by upgrading existing equipments & also build new equipments improving upon existing available technology.

The projects initiated and expected to complete before the end of this financial year is as follows:

Urse: The new project at Urse was taken up in the year under review. Project start up was delayed on account of purchase of land. Work is on in full swing. The plant is expected to start by October 2007.

Malanpur: Two stage capcell plant was started with technology support from Sanwa Kako of Japan

Hosur: Debottlenecking of all plants at Hosur required more space at Hosur to be able to utilize the capacities.

A proper R&D lab will be established this year at Urse. This will create many new opportunities for the Division.

Many new fabricating equipments have been added & will be further added in the current year to enhance product offerings to the valued customers.

They believe that the Division should achieve a topline growth of nearly 25 % & the bottom-line is expected to grow correspondingly.

CROSS LAMINATED FILM:

The Company uses cross laminated film for making Tarpaulins, bags, rainwater harvesting systems and fumigation covers.

The Company sold 6639 tons of products against 5659 tons of XF products during the previous year. The increased supply of products was delayed due to teething troubles in the equipments which were overcome by May 07. Thus the Company had a marginal growth in business. The Company could not meet the requirements of the customers due to paucity of supply. Exports increased to 1072 tons as against 1036 tons of the previous year. The export demand has started coming from several developed markets. The volume in export also was restricted due to non-availability of the product.

The capacity is now fully operational. The Company expects to sell around 9000 tons in the current year from the capacity which has gone into production. Volume varies based on thickness and sizes. Considering business pattern, around 9000 tons production will be achieved from the current installed capacity of 10,500 tons.

The Company intends to install additional balancing equipments with an outlay of Rs. 150.000 millions in this year. It will enable the Company to produce around 11500 tons of products during the next year.

The Company's collaborator is in the process of inventing next generation XL film with further superior properties. The Company has entered into an agreement with a collaborator for exclusive right to produce the same in India and surrounding countries.

The Company has already paid USD 120,000 to avail of this right. Further payments will be made to enjoy this right for designated markets with additional down payments and running royalty. The Company expects to launch the product of newer technology in the year 2008-09.

6. PLASTICS RAW MATERIAL:

All the ten economic blocks of the world are simultaneously growing well and thus assisting each other to continue on higher growth path. The world economy grew by 5.3% in 2006 and expects to grow by 4.9% in 2007. In most of the commodities, demand is outstripping supply. This has led to high price of crude which has resulted in higher international prices of Polymers. The appreciation of Indian Re Vs. $ has moderated the impact of high international Polymer prices. It enabled the Company to procure it's raw material at affordable price through out the year.

7. FINANCE:

The Debt Equity Ratio of the Company has improved significantly at the end of the year as compared to that of the previous year. Interest bearing liabilities have decreased from Rs. 2374.800 millions in 2005-06 to Rs. 2283.200 millions in 200607 representing reduction in Debt level by Rs. 91.600 millions.

On likely receipt of about Rs. 900.000 millions, in all, through divestments the Company's cash flow position shall strengthen considerably.

The Company's investment plan in various projects during the current year will be met by internal accruals, divestments and borrowings.

The Company meets a major part of its Working Capital requirements through placement of Commercial Papers (CPs) at considerably lower cost. However, the interest rates continued to harden during the year. Consequently, the average interest rate of the outstanding interest bearing liabilities as on 30.06.2007, increased to 9.12% p.a. vis-a-vis 7.81% p.a. at the end of the previous year. This has resulted in higher interest and financial charges during the year as compared to that of the previous year. Recently, there are indications that the interest rates have peaked and may stabilize or even soften in due course.

Contingent Liabilities

Rs. in millions

	30.06.2007	30.06.2006
Bills / Cheques discounted	121.407	84.086
Guarantees given by Banks	29.494	53.744
Disputed demand of lease rent differential not acknowledged as debt	21.311	21.311
Claims against the company including show cause cum demand notices from Central Excise Department not acknowledged as debts	76.539	57.563
Disputed sales Tax / Entry Tax Demands	77.900	41.485
Disputed Sales Tax /Entry Tax Demands	112.015	27.431
Other Claims against the company not acknowledged as debts	5.994	5.675
Total	474.920	321.555

The company has imported capital goods under the Export Promotion Capital Goods Scheme of the Government of India, at concessional rate of duty on an understanding to fulfill qualified exports of which remaining future obligation aggregates to Rs. 1172.425 millions (Previous Year Rs. 605.555 millions). Non fulfillment of such future obligation, if any options /right to the government to confiscate capital goods imported under the said license and other penalties under the above referred scheme.

Fixed assets:

v Freehold Land

v Leasehold Land

v Buildings

v Plant, Machinery and Electrical Installations

v Moulds and Dies

v Furniture, Fixture and Office Equipments

v Vehicles

v Sundry Equipments

As per Website:

Milestones :

Founded in 1942, Supreme is an acknowledged leader of India's plastics industry.

Handling volumes of over 100,000 tonnes of polymers annually, effectively makes them the country's largest plastics processors.

Not surprisingly, they also offer the widest and most comprehensive range of plastic products in India.

Their 20 advanced plants are powered by technology from world leaders, and complement their extensive facilities for R & D and new product development.

In fact, Supreme is credited with pioneering several products in India. These include Cross- Laminated Films, HMHD Films, Multilayer Films, SWR Piping Systems, PP Mats and more.

They are seeking to perform strongly internationally as well. Exports remain a focal area of their operations, even as they add newer markets to their list worldwide.

2005 will see The Supreme Group turnover touch a projected Rs. 23,000 million (USD 500 million).

From Strength to Strength

From modest beginnings, as a small single product company in the 1950s, to a Rs. 2,0000.000 Millions multi-unit conglomerate with India's largest plastic products portfolio today, the Supreme Group has certainly come a long way.

This unrelenting growth has come through diverse efforts: consolidation and expansion, enhancement of capacities, addition of fresh products and variants, establishment of newer plants, and occasionally, even acquisition of under-performing but high potential units and brands.

Understandably, the integration route has been successfully explored by the Group.

For instance, in a major backward integration move, Supreme Petrochem Ltd.-- and with it, one of India's largest world class styrenics complexes-- came into being.

Similarly, diversification and horizontal integration have been fuelled by strategic collaborations with technology leaders. Two prime examples of this are introduction of multi-layer films and calendered film products in the country .

The Group has made substantial complementary investments in R & D. This has not only helped in a thorough and superior assimilation of cutting edge technologies, but also contributed to a collateral development of newer and improved products on a continuing basis.

So, while Supreme SWR systems were India's first viable alternative to conventional GI pipes and fittings, the unflagging creation of newer fittings keeps an unmatched range growing ever further .

A client-friendly approach, a readiness to customize and an eagerness to provide all technical support have played no mean role in propelling Supreme to leadership.

An open mind and receptivity to new ideas and needs remain hallmarks of the Group's interface with all customers-- in India and across the globe .

The Company processed 59,526 MT of polymers during the first nine months of the current year as compared to 52,511 MT in the corrosponding period of the previous year recording a growth of 13.36%

Pursuant to the approval by share holders of the Company at the annual general meeting held on 5^th October, 2006 the Bonous shares Allotment Commitments of the Direcctors of the Company has allotted 1,38,10,837 equity shares of Rs. 10/- each as bonous shares in the ratio of 1 (one) equity Shares for Every 1(One) existing shares of rs. 10 each held by the shareholders on the Dare viz. 14.11.2006.

Board of Director has considered the payment of interim dividend for the financial year 2006-07 @25% i.e. Rs.2.50 per shares of Rs.10/- each and will be paid to the shareholders on the records date i.e. 29^th January 2007

The Company is engaged mainly in processing of plastic polymers and as such is the only reportable segment as per Accounting Standard on Segment Reporting (AS-17) issued by ICAI.The geographical segmentation is not relevant as export turnover is not significant in respect to total turnover.

Provision for Dffered Tax will be ascertained and accounted for at all the end of the year.

Investor complaints during the quarter; Opening balance: NIL, Received during the quarter : 15, Pending as on 31st March 2006: NIL.

The figures for the previous quarter/year have been regrouped/rearranged wherever necessary.

Press Releases

The Supreme Industries Limited has reported gross turnover and other income of Rs. 4071.300 Millions including Rs. 167.100 Millions of polymer trading) in the first 6 months ended 31 st December 2004 of the current year as against Rs. 4297.300 Millions (including Rs. 352.900 Millions of polymer trading) during the corresponding period of last year.

Operating profit for the first half of current year is lower at Rs. 256.300 Millions as against Rs. 325.200 Millions in last year and the Net Profit is Rs. 51.200 Millions as against Rs. 113.600 Millions in the corresponding period of previous year .

The first half of the current year has witnessed steep volatility in polymer prices. The whole of the plastic processing industry has passed through a bad phase due to such volatility, which has led to degrowth in consumption of plastics in the Indian economy inspite of GDP growth in excess of 7%. The overall consumption of majority of commodity plastics in the last 9 months (April 2004 to December 2004) was either negative or flat. The prices have since then stabilized and outlook remains positive for the first half of the calendar year .

Supreme is increasing its capacities in more value added products and to increase its export capabilities which would minimize the effects of such volatility in polymer prices. The Company has planned capex of Rs. 650.000 Millions during the current year, Major capex has been committed for such value added products and to augment the capacity for export markets .

The second half of the current year looks promising and the Company expects to achieve it's financials in line with the previous year.

Supreme Industries Limited Q2 Net Sales at Rs. 2880.000 millions

Net Profit for the quarter at Rs. 130.000 millions.

Mumbai, January 9, 2008: Supreme Industries Ltd, India’s leading processors of plastic, has reported a Net profit of Rs.130.000 millions for the quarter ended December 31, 2007, as compared to Rs. 95.700 millions for the corresponding quarter ended December 31, 2006.

Net Sales for the quarter ended December 31, 2007 stood at Rs. 2880.000 millions, as compared to Rs. 2670.000 millions for the corresponding quarter ended December 31, 2006.

Earning per share (diluted) for the quarter stood at Rs 4.73 when compared to Rs 3.47 of the previous quarter.

The Board of Directors of the Company in its meeting held on 8th January, 2008 has declared Interim Dividend of Rs. 3.50 per Equity Share as compared to Rs. 2.50 per Equity Share in previous year. Total Dividend payout including Corporate Dividend Tax would be Rs. 113.100 millions.

For the half-year ended December 31, 2007, (Financial year ending being June 30, 2008) the company posted a net profit of Rs 223.500 millions as against Rs. 194.000 millions of the corresponding half year ended December 31, 2006.

Net Sales for the half-year ended December 31, 2007, (Financial year ending being June 30, 2008) stood at Rs. 5420.000 millions, when compared to Rs. 4950.000 millions of the corresponding half year ended December 31, 2006.

Commenting on the results Mr. M P Taparia, Managing Director, Supreme Industries Limited, said, “This quarter has been satisfactory for us. We are expanding our product portfolio to cater to diverse applications of the industry. With better productivity and increased capacities now available, we are hopeful of achieving planned growth in production for the year.”

Supreme Industries has made an investment plan of Rs. 2700.000 millions for the year 06-07 and 07-08. The Company’s expansion plan including Mega Project at Gadegaon is progressing well. Production has been stabilized during January 2008 at Gadegaon. At Gadegaon the products manufactured / to be manufactured will be pipes, pallets, crates, furniture and fabricated products from cross-laminated film.

About Supreme Industries Limited

Supreme Industries Limited is India’s leading processors of plastics, offering the widest and the most comprehensive range of plastic products in India. The company operates in various segments viz. Plastics Piping System, Packaging Products, Industrial Products, Material handling system, Tarpaulins and Consumer Products.

Supreme Industries has 17 technologically advanced manufacturing plants located at various places spread across the country. The company has built up excellent relationships with its distributors, providing training to them, in order to ensure proper service to ultimate customers.

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

The 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.

The 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. 42.97
UK Pound	1	Rs. 84.72
Euro	1	Rs. 66.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	8
--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
TOTAL		69

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, they have no basis upon which to recommend credit dealings	No Rating

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

MIRA INFORM REPORT

RATING

1102.221

982.692

746.235

1252.174

1118.291

899.605

142.265

77.079

75.162

556.280

423.463

579.180

3052.940

2601.525

2733.778

1512.398

1075.363

180.590

213.904

25.575

2914.368

1726.302

1100.938

138.572

875.223

1199.244

Unit