MIRA INFORM REPORT

Report Date :

28.05.2011

IDENTIFICATION DETAILS

Name :	SPRINGS GLOBAL US, INC.
Registered Office :	2711 Centerville Road Suite 400, Wilmington, Delaware, 19808
Country :	United States
Financials (as on) :	31.12.2010
Date of Incorporation :	28.10.2005
Com. Reg. No.:	4052784
Legal Form :	Corporation for Profit
Line of Business :	Textile Home Furnishings Supplier

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :
Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear

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^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
United States	a1	a1

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

Bottom of Form

GEOPOLITICS - UNITED STATES

POLITICAL DATA	ECONOMIC DATA
Form of Government: Federal Economic Risk: Nil	Currency: USD Branch Situation: Competitive

IDENTIFICATION

Ordered as:	Spring Global Usa Inc
Address in the order:	205, North White Street Fort Mill SC 29715 803 396 1293
Comments on data supplied:	The correct name is SPRINGS GLOBAL US, INC.
Legal Name:	SPRINGS GLOBAL US, INC.
Legal Address	2711 CENTERVILLE ROAD SUITE 400, WILMINGTON, DELAWARE, 19808, USA
Operative Address	205 N White Street, Fort Mill, South Carolina 29715
Telephone:	+1 803-547-1500	Registration Number :	4052784
Fax:	+ 1803-547-1636	Legal Form:	Corporation for Profit
Email:	info@springs.com/	Registered in:	Delaware
Website:	http://springs.com/	Date Created:	2005
Manager:	Josué Christiano Gomes da Silva	Date Incorporated:	October 28, 2005
Staff:	6000	Stock:	NA
		Value:	NA
Activity:	Textile home furnishings supplier

BANKS

Name of the Bank

WACHOVIA BANK

BUSINESS

HISTORY
	The company was born of the merger of the textile home furnishings businesses of Springs Industries of the United States and Coteminas of Brazil in January 2006.
PRINCIPAL ACTIVITY
	The company is a vertically integrated textile home furnishings supplier.
Products/Services description:
	The company offers bedding and bath products: Towels Dishcloths Sheets Blankets Decorative pillows Bed Skirts among others.
Sales are:
	Wholesale, Retail
Brands:
	•Wamsutta •Springmaid •Pure Brazil Cotton •Court of Versailles •Artex •Santista •Fantasia •Arco Iris
Clients:
	Final consumers. Its home furnishings are sold through catalogs, department stores, and mass merchandisers (such as Wal-Mart and Target).
Operations area:
	National, International
The company imports from Asia (HONG KONG, India)
The company export to Canada, and Mexico.
Trade References:
	The person contacted refused to provide the names of their suppliers for us to check the trade references.
Competitors:
	Polymer Group, Inc American Woolen Company, Inc True Textiles, Inc
The subject employs 6000 employee(s)
PAYMENTS
	made on a 45 days basis - monitored over the last 12 months
LOCATION
Headquarters
	The company is headquartered at the above operative address. The legal address is the one registered at the Secretary of State of Delaware and is that of the registered agent.
Comments on location:
	The company is incorporated in Delaware for taxes purposes. However it is headquartered in South Carolina.
Branches:
	The company has branches in different states in US.

Shareholders - Manager - Related Companies

Listed at the stock exchange:
	NO
Shareholders Parent Company(ies):
	This is a private company and it is a subsidiary of Springs Global Participações S.A, this company operates in the Sao Paulo Stock Exchange under the symbol of SGPS3. Av Magalhaes Pinto, n. 4000 - parte, Planalto Montes Claros, 39404-166 Brazil P: +55 38 40 09 50 00 F: +55 38 40 09 51 10
Management:
	Josué Christiano Gomes da Silva, Chairman and CEO Tom O'Connor, President Edward Cardimona, Chief Global Creative Officer Torrence Shealy, Vice President Leslie Gillock, Vice President of Brand Management

Financials - COMMERCIAL TRENDS AND FORECAST

As a private company, the subject does not publish any financial statements.

The parent company is a public company traded at the stock exchange. Please find enclosed the financial statements.

We have contacted Janice who refused to provide us any financial data without knowing the name of the inquiring party.

Legal Fillings

There are several UCCs files listed with the Secretary of State of South Carolina.

There are no legal filings listed with the District Court.

For information:

The Uniform Commercial Code (UCC) is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states within the United States of America.

The UCC deals primarily with transactions involving personal property (movable property), not real property (immovable property).

It allows a creditor to notify other creditors about a debtor’s assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office.

The Uniform Commercial Code Bureau files and maintains on financial obligations (including IRS liens) incurred by individuals (in business as a sole proprietor), business entities and corporations.

Rating

Local credit bureau gave a correct credit rate. The company is in Good Standing. This means that all local and federal taxes were paid on due date.
Final Opinion
	The company has 6 years in the business. It is a large sized American company, evolving in a competitive sector. We did not find a specific adverse record against the subject. Profitability is negative, indebtedness is medium, cash is good and payments are regular. We suggest working with guarantees while monitoring the evolution of the company.

SUMMARY

FINANCIAL SUMMARY		DEBT COLLECTIONS AND PAYMENTS
Profitability	NEGATIVE	Public Records	NO
Indebtedness	MEDIUM	Payments	REGULAR
Cash	GOOD

APPENDIX

Person Interviewed
	Janice
Position
	Finance Department
Comments
	She refused to provide and verify information without knowing the name of the inquiring company.

company Financial data

Income Statement Annual Data

Currency in Millions of Brazilian Reals	As of:	Dec 31 2007 Restated BRL	Dec 31 2008 Reclassified BRL	Dec 31 2009 Restated BRL	Dec 31 2010 BRL
Revenues		3,552.2	2,882.5	2,396.2	2,315.1
TOTAL REVENUES		3,552.2	2,882.5	2,396.2	2,315.1
Cost of Goods Sold		3,273.0	2,529.5	2,058.5	1,929.4
GROSS PROFIT		279.2	353.0	337.7	385.7
Selling General & Admin Expenses, Total		409.3	332.8	346.9	359.5
Other Operating Expenses		137.9	29.3	38.5	-3.4
OTHER OPERATING EXPENSES, TOTAL		547.2	362.1	385.4	356.1
OPERATING INCOME		-268.0	-9.1	-47.7	29.6
Interest Expense		-93.0	-65.4	-46.5	-53.0
Interest and Investment Income		19.1	24.4	20.7	18.3
NET INTEREST EXPENSE		-73.9	-41.0	-25.8	-34.7
Currency Exchange Gains (Loss)		48.8	-168.2	157.4	37.1
Other Non-Operating Income (Expenses)		-41.0	-38.6	-38.1	-45.8
EBT, EXCLUDING UNUSUAL ITEMS		-334.2	-257.0	45.9	-13.9
Merger & Restructuring Charges		--	-24.4	-0.3	-1.3
Gain (Loss) on Sale of Assets		--	-16.6	-8.6	-3.4
Other Unusual Items, Total		--	-64.0	-7.4	1.7
EBT, INCLUDING UNUSUAL ITEMS		-334.2	-362.0	29.5	-16.9
Income Tax Expense		-33.3	-19.6	-11.1	1.5
Minority Interest in Earnings		--	--	-1.6	-3.6
Earnings from Continuing Operations		-300.9	-342.4	40.6	-18.4
NET INCOME		-300.9	-342.4	39.0	-22.0
NET INCOME TO COMMON INCLUDING EXTRA ITEMS		-300.9	-342.4	39.0	-22.0
NET INCOME TO COMMON EXCLUDING EXTRA ITEMS		-300.9	-342.4	39.0	-22.0

Income Statement Quarterly Data

Currency in Millions of Brazilian Reals	As of:	Dec 31 2009 Restated BRL	Jun 30 2010 BRL	Sep 30 2010 BRL	Dec 31 2010 BRL
Revenues		531.4	607.8	580.1	529.4
TOTAL REVENUES		531.4	607.8	580.1	529.4
Cost of Goods Sold		446.6	512.2	479.6	442.3
GROSS PROFIT		84.9	95.7	100.5	87.1
Selling General & Admin Expenses, Total		88.5	92.5	90.8	87.9
Other Operating Expenses		15.5	2.8	-0.8	-5.6
OTHER OPERATING EXPENSES, TOTAL		104.0	95.2	90.0	82.3
OPERATING INCOME		-19.1	0.4	10.5	4.7
Interest Expense		-11.7	-10.4	-14.7	-16.5
Interest and Investment Income		2.8	3.7	1.7	6.6
NET INTEREST EXPENSE		-8.9	-6.7	-13.0	-9.9
Currency Exchange Gains (Loss)		45.3	13.6	15.5	-2.2
Other Non-Operating Income (Expenses)		-3.2	-13.6	-12.8	-5.3
EBT, EXCLUDING UNUSUAL ITEMS		14.0	-6.3	0.2	-12.7
Merger & Restructuring Charges		-0.3	--	--	-1.3
Gain (Loss) on Sale of Assets		-8.6	--	--	-3.4
Other Unusual Items, Total		-7.4	--	--	1.7
EBT, INCLUDING UNUSUAL ITEMS		-2.3	-6.3	0.2	-15.8
Income Tax Expense		-3.8	-11.5	26.8	-16.7
Minority Interest in Earnings		-0.4	-1.1	-1.1	-0.3
Earnings from Continuing Operations		1.5	5.2	-26.6	0.9
NET INCOME		1.0	4.1	-27.7	0.6
NET INCOME TO COMMON INCLUDING EXTRA ITEMS		1.0	4.1	-27.7	0.6
NET INCOME TO COMMON EXCLUDING EXTRA ITEMS		1.0	4.1	-27.7	0.6

Balance Sheet Annual Data

Currency in Millions of Brazilian Reals	As of:	Dec 31 2009 Restated BRL	Jun 30 2010 BRL	Sep 30 2010 BRL	Dec 31 2010 BRL
Assets
Cash and Equivalents		58.7	65.1	31.2	141.3
TOTAL CASH AND SHORT TERM INVESTMENTS		58.7	65.1	31.2	141.3
Accounts Receivable		476.7	395.9	423.5	501.2
Other Receivables		68.1	48.2	46.2	42.5
TOTAL RECEIVABLES		544.8	444.1	469.7	543.7
Inventory		537.1	589.1	600.9	544.0
Other Current Assets		18.3	55.0	28.6	64.7
TOTAL CURRENT ASSETS		1,158.9	1,153.2	1,130.3	1,293.8
Gross Property Plant and Equipment		2,386.5	2,413.5	2,391.5	2,393.6
Accumulated Depreciation		-1,241.6	-1,305.5	-1,300.8	-1,317.1
NET PROPERTY PLANT AND EQUIPMENT		1,144.9	1,108.0	1,090.6	1,076.5
Goodwill		51.4	52.2	50.8	50.6
Accounts Receivable, Long Term		8.0	6.8	5.6	4.9
Deferred Tax Assets, Long Term		105.2	121.5	109.1	126.2
Other Intangibles		26.1	26.5	26.2	26.2
Other Long-Term Assets		214.1	184.7	92.4	105.8
TOTAL ASSETS		2,708.7	2,652.8	2,505.0	2,684.0
LIABILITIES & EQUITY
Accounts Payable		308.1	332.9	286.8	236.2
Accrued Expenses		51.8	66.0	86.5	50.6
Short-Term Borrowings		29.2	33.2	8.2	275.6
Current Portion of Long-Term Debt/Capital Lease		227.4	103.0	85.2	65.3
Current Income Taxes Payable		16.7	16.1	2.3	13.6
Other Current Liabilities, Total		16.3	10.7	23.2	17.7
TOTAL CURRENT LIABILITIES		649.4	561.7	492.2	659.0
Long-Term Debt		140.8	213.7	197.5	186.8
Minority Interest		16.3	17.7	18.8	18.3
Unearned Revenue, Non-Current		50.5	57.1	58.8	64.0
Pension & Other Post-Retirement Benefits		76.2	76.7	70.5	69.3
Deferred Tax Liability Non-Current		9.7	2.1	--	--
Other Non-Current Liabilities		72.1	44.6	39.0	57.3
TOTAL LIABILITIES		998.8	956.0	858.0	1,036.4
Common Stock		1,691.2	1,691.2	1,691.2	1,691.2
Retained Earnings		38.4	31.8	4.1	4.7
Comprehensive Income and Other		-36.1	-44.0	-67.2	-66.6
TOTAL COMMON EQUITY		1,693.5	1,679.1	1,628.2	1,629.3
TOTAL EQUITY		1,709.8	1,696.8	1,647.0	1,647.6
TOTAL LIABILITIES AND EQUITY		2,708.7	2,652.8	2,505.0	2,684.0

Additional information

SPRINGS GLOBAL PARTICIPAÇÕES S.A. (Parent Company)

The management of Springs Global Participações S.A. submits, for the consideration, its Management’s discussion and analysis of financial condition and results of operations and its Financial Statements for the years of 2010 and 2009. Such information, prepared in accordance with International Financial Reporting Standards (IFRS), as well as with Brazilian accounting practices and standards established by the Brazilian Securities Exchange Commission (“CVM”), is accompanied by its Independent Auditors’ report.

The year of 2010 was marked by an enormous liquidity injection in the world financial markets as a way of economic recovery from the financial crisis that took place at the end of 2008. The extremely low interest rates, which resulted from the liquidity surplus, and the fiscal expansion in the major economies were able to reverse the sharp GDP drop that was experienced worldwide in 2009.

Brazil has fared exceptionally well throughout the crisis. For the first time in decades, their government was able to adopt counter-cyclical fiscal and monetary policies and to launch programs to finance investments with interest rates and terms consistent with the productive activities. The reductions in indirect taxes, adopted as an incentive instrument to the purchase of certain durable goods, also generated a positive effect on consumption and the result was a significant recovery in economic growth.

Brazil's GDP, which had been stagnating in 2009, a celebrated result considering the enormous crisis experienced by all major economies in the world during that year, has continued with the strong recovery that started in the second half of 2009, and reached the historic mark of 7.5 % growth.

More important than the growth of the Brazilian gross domestic product was the quality of it: the expansion has been driven by the growth of private and public investment, which accounted for over 19% of GDP in 2010. The withdrawal of consumption and investment incentives began in an orderly and prudent way, in order to prevent the incipient recovery from losing strength, while avoiding aggregated demand surplus that could generate inflationary pressures.

However, the international liquidity surplus, with massive amount of dollars seeking easy return, has greatly increased the difficulty in managing the macroeconomic environment. The currency war: the policy adopted by China, of pegging its currency to the U.S. dollar, keeping it very undervalued, and the "quantitative easing" adopted by the United States, with the issuance of hundreds of billions of paper money, reduced, greatly, the degrees of freedom of their economic authorities. On the one hand, the flood of dollars into their economy has increased the harmful overvaluation of the Real. Billions of dollars have found safe haven in their economy by taking advantage of the still very high real interest rates prevailing in Brazil. The result was a further accelerated deterioration of their balance of trade. On the other hand, the depreciation of the dollar, the demand recovery in most developed economies and the strong increase of consumption in emerging countries have led to significant increases in mineral and agricultural commodities prices, resulting in inflationary pressures. If, in developed countries, due to high unemployment rates, the transmission mechanisms of inflation shows no risk at the moment, in developing countries, the over heated labor market may lead to high inflationary cycle.

The higher costs in less developed countries have already triggered serious political unrest as they are beginning to see in North Africa. Also in the political arena, Brazil is an example to the world. In 2010, they elected all their governors, their representatives in the Legislative Assemblies, all their Federal Representatives and two thirds of their Senators in a very beautiful democratic celebration. Additionally, in a legendary election, they chose the first woman elected President of their nation, Dilma Rousseff.

This was the macroeconomic and political environment in which Springs Global has operated throughout 2010. Despite the challenges caused by the increase in commodity prices, particularly in cotton prices, the improvement in the results of operations of the Company was substantial. Total sales reached R$ 2.8 billion, the same amount as last year. This performance was only possible thanks to the 29.2% sales growth in the Brazilian market, as overseas sales also struggled due to the 11.6% appreciation of the real against the dollar. Sales in Brazil accounted for 44.9% of consolidated net sales in 2010, an important improvement compared to 33.6% from the previous year. Gross profit progressed positively, even though they have been impacted by increased costs of our

products caused by the extraordinary increase cotton prices. Earnings before interest, taxes, depreciation and amortization improved 136%.

Their results were not better due to the strong impact of the cotton price increase in their costs. Their suppliers started to adjust their prices almost daily and at the same intensity with which the prices of this noble textile fiber hit record highs. Nobody could have expected such exaggerated highs that, at times, seemed to be more a reflection of panic. Cotton increased by approximately 200% and the contracts that they held with their Asian suppliers were not fulfilled by them. In addition to the adjustments in prices requested by their suppliers, there were also reductions in payment terms, bringing a strong need for additional working capital. Naturally, the price adjustment for their retail customers did not occur at the same speed, which strongly impacted their margins and caused a decrease in sales volume in the United States.

The domestic textile industry is likely to benefit, whenever the cotton market stabilizes. Brazil is a net cotton exporter and the Brazilian textile industry can buy cotton at export prices, having a discount over the price in the New York International Cotton Exchange (ICE). Even though China is the world's largest producer of cotton, it is also the world's largest importer and pays premium prices for it, in comparison to ICE prices. This premium has increased with the new price levels of cotton. This important differential in the price of raw materials helps to minimize, in some cases eliminating, the competitive advantage in the conversion costs that Asian producers have in relation to the domestic industry.

These costs (conversion) become less significant in the total costs of goods sold as a result of the increase in raw materials. The price of cotton should remain high during 2011, even though there is a projected increase of approximately 25% of the planted area in Brazil. The Company managed to ensure supply for the year 2011 at reasonable prices, even though above 2010 average prices.

2010 was a positive year for their retail sales. mmartan® continues with its expansion program of its store network and, throughout 2011, plans to open another 40 new stores that will be added to the existing 137 at the end of this year. They will launch a new flag in 2011: Casa Moysés. Focused on consumers with higher purchasing power, the new network should reach, in the coming years, more than 40 stores. It will offer, exclusively, in addition to the prestigious brand Casa Moysés, very traditional brands that are sold in the U.S.: Court of Versailles and Wamsutta, taking advantage of the large scale of their North American operations. In the United States, their efforts in product development, innovation and the launching of new brands are being recognized. The DVF Home line is having tremendous success and they are confident that the Nate Berkus line, as well as Espacio’s joint-venture with the brilliant architect Sami Hayek, will be as well received as the DVF Home line.

They are confident that the persistent work and the planned investments will provide their shareholders good rates of return. After all, the company has significant operating leverage. They can grow in the Brazilian market, having a greater share of installed production capacity. In the United States, the current team and infrastructure will support the sales growth of their trademarks products, diluting fixed costs and resulting in improved profitability of the operations.

The economy’s outlook is favorable and, in Brazil, the company will grow at above-market rates, allowing domestic sales to account for an increasing percentage share of Springs Global’s total sales. Springs Global will be prepared to face adversities and to take advantage of opportunities that arise. Adherence to the Market Arbitration Panel.

The Company, its shareholders, administrators and members of the Fiscal Council, undertake to resolve through arbitration all and any disputes among them related to or arising from, especially, the application, validity, effectiveness, interpretation, violation and related effects of the Company’s Bylaws, Law 6,404/76, the norms of the National Monetary Council (CMN), the Central Bank of Brazil and the Securities and Exchange Commission of Brazil (CVM), any other laws or regulations applicable to the general functioning of the capital markets, as well as the Novo Mercado Regulations and the Regulations of the Market Arbitration Panel.

Relationship with Independent Auditors

In 2010, the Company did not engage its independent auditors for services other than those related to the year-end audit. Acknowledgements They would like to express their appreciation to SUDENE, BNDES, BDMG, BNB, Banco do Brasil, their commercial banking group, the press, their customers and suppliers, their shareholders, government officials, trade and social organizations, their associates and everyone that has contributed directly or indirectly to the achievement of the Company’s social goals.

Management’s Discussion and Analysis

Montes Claros, March 30, 2011 – Springs Global Participações S.A. (BOVESPA: SGPS3, Bloomberg: SGPS3:BZ), the world leader in the bed, table and bath home furnishings industry, submits, for the consideration, its Management’s discussion and analysis of financial condition and results of operations and its Annual Financial Statements for the year ended December 31, 2010 and 2009. Such information, prepared in conformity with the International Financial Reporting Standards (“IFRS”) as well as standards established by the Brazilian Securities Exchange Commission (“CVM”), is accompanied by its Independent Accountants’ report. The following financial and operational information for Springs Global Participações S.A. (“Springs Global” or “Company”) is presented, unless otherwise indicated, on a consolidated basis, in Brazilian Reais (R$), and the comparisons, except when stated otherwise, are with the year of 2009.

Net sales by segment

Sales in Brazil have continued to present strong growth. Consolidated net sales in the amount of R$2,315.1 million in 2010 were 3.4% lower than consolidated net sales in 2009, reflecting a 4,7% decrease in sales volume

in tons and a 1.3% increase in the average price.

Net sales in the Fashion bedding segment - The decrease of 8.6%, from R$956.9 million in 2009 to R$875.0 million in 2010, reflects a 10.6% decrease in sales volume in tons, partially offset by a 2.3% increase in the average price. Even though there was an increase in fashion bedding sales in Brazil, it was not enough to offset the reduction in sales in the North American market. The 2.3% increase in the average price in 2010 is primarily due to an improved mix of sales and the higher percentage of sales in Brazil in the total sales of the Company.

Cost of goods sold

Cost of goods sold decreased by by 6.3%, from R$2,058.5 million in 2009 to R$1,929.4 million in 2010.

Materials – Material costs decreased by 8.5%, from R$1,356.5 million in 2009 to R$1,240.7 million in 2010. As a percentage of net sales, material costs decreased from 56.6% in 2009 to 53.6% in 2010. The decreases in material costs and material cost as a percentage of net sales are mainly attributed to the higher percentage of products manufactured by their Brazilian subsidiary in the total of products sold. Conversion costs – Conversion costs increased by 1.5%, from R$535.4 million in 2009 to R$543.5 million in 2010. Conversion costs increased as

a percentage of net sales, from 22.3% in 2009 to 23.5% in 2010. This increase is due to the higher percentage of products manufactured by their Brazilian subsidiary in the total of products sold.

Warehousing and distribution costs

Warehousing and distribution costs decreased by 23.4%, from R$57.8 million in 2009 to R$44.3 million in 2010, reflecting lower sales volume in the North American market and the appreciation of the Brazilian Real on the translation of the costs of their U.S. subsidiary. As a percentage of net sales, warehousing and distribution

costs decreased from 2.4% in 2009 to 1.9% in 2010

Depreciation of production and distribution assets

Depreciation expenses of production and distribution assets were R$108.8 million in 2009 and R$100.9 million in 2010.

OPERATIONS

Springs Global Participações S.A. (the “Company”), domiciled in Montes Claros – MG, Brazil, was incorporated on November 24, 2005 and, on January 24, 2006 received as capital contribution 100% of the shares of Coteminas S.A. (“CSA”) and Springs Global US, Inc. (“SGUS”), privately-held companies headquartered in Brazil and in the United States, respectively, whose shareholders were Companhia de Tecidos Norte de Minas - Coteminas (“CTNM”) and the former shareholders of Springs Industries, Inc. (“SI”), respectively. On April 30, 2009, the Company acquired a controlling interest in Springs e Rossini Participações S.A. (“SRPSA”), the parent of MMartan Têxtil Ltda (“MMartan”).

On July 27, 2007, the Company’s stock began trading on the “Bolsa de Valores, Mercadorias e mFuturos” – BM&FBOVESPA S.A., in the “Novo Mercado” segment, under the code “SGPS3”. The Company functions as the holding company of CSA and SGUS, companies that focus their manufacturing and distribution operations on bed and bath linens, previously carried out by CTNM and SI. This joint venture created the world’s largest textile industrial complex of bed linens and bath products, with production units in Brazil, Argentina, the United States, and Mexico. The Company also manufactures products with strong brand names, such as Springmaid, Wamsutta, Regal, Artex, Santista, Paládio, Calfat, Garcia, Arco Íris, Magicolor, among others. The Company’s products have a privileged market standing on the shelves of the largest and most demanding retail channels of the world. The Company’s products are sold in the United States and Canada by SGUS through its vast distribution chain that is close to the largest retailers in those markets. In Brazil and Argentina, its products are sold by CSA and its subsidiary Coteminas Argentina S.A.

Beginning on April 30, 2009, the Company became the controlling shareholder of SRPSA with 64.7% equity interest. SRPSA functions as the holding company of MMartan, a company specialized in retailing bed, bath and table top linen products with high value-added.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.29
UK Pound	1	Rs.73.84
Euro	1	Rs.64.18

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	----

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%)

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.