MIRA INFORM REPORT

Report Date :

03.04.2012

IDENTIFICATION DETAILS

Name :	THE LAKSHMI MILLS COMPANY LIMITED
Registered Office :	Old No. 1100, New No. 686, Avanashi Road, Papanickenpalayam, Coimbatore-641037, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.04.1910
Com. Reg. No.:	18-000093
Capital Investment / Paid-up Capital :	Rs. 69.555 Millions
CIN No.: [Company Identification No.]	L17111TZ1910PLC000093
TAN No.: [Tax Deduction & Collection Account No.]	CMBT03088B/CMBT03037G
Legal Form :	It is a public limited liability company. The company’s shares are listed on Stock Exchanges
Line of Business :	Manufacturers of Cotton Yarn, Cotton Fabrics, Staple Fibre Yarn and Cloth
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 5000000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an old, a well established and reputed company having satisfactory track. General financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	Old No. 1100, New No. 686, Avanashi Road, Papanickenpalayam, Coimbatore-641037, Tamilnadu, India
Tel. No.:	91-422-2215461 to 2215465 / 4333700
Fax No.:	91-422-2216508
E-Mail :	contact@lakshmimills.com
Website :	http://www.lakshmimills.com

DIRECTORS

AS ON 31.03.2011

Name :	Mr. R. Santharam
Designation :	Vice Chairman
Name :	Mr. Sanjay Jayavarthanavelu
Designation :	Director
Name :	Mr. V.Jagannathan
Designation :	Director
Name :	Mr. D. Rajendran
Designation :	Director
Name :	Mr. Satish Ajmera
Designation :	Director
Name :	Mr. Aditya Krishna Pathy
Designation :	Whole Time Director
Name :	Mr. S. Pathy
Designation :	Managing Director

KEY EXECUTIVES

Name :	Mr. S. Balamurugasundaram
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2011

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	237,243	34.11
Bodies Corporate	140,169	20.15
Sub Total	377,412	54.26
(2) Foreign
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	40	0.01
Financial Institutions / Banks	505	0.07
Central Government / State Government(s)	5,107	0.73
Insurance Companies	38,208	5.49
Any Others (Specify)	20	-
Foreign Financial Institutions / Banks	20	-
Sub Total	43,880	6.31
(2) Non-Institutions
Bodies Corporate	69,206	9.95
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	165,050	23.73
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	29,231	4.2
Any Others (Specify)	10,771	1.55
Trusts	388	0.06
Directors & their Relatives & Friends	570	0.08
Non Resident Indians	2,665	0.38
Clearing Members	705	0.1
Hindu Undivided Families	6,443	0.93
Sub Total	274,258	39.43
Total Public shareholding (B)	318,138	45.74
Total (A)+(B)	695,550	100
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	695,550	-

BUSINESS DETAILS

Line of Business :

Manufacturers of Cotton Yarn, Cotton Fabrics, Staple Fibre Yarn and Cloth

Products :

ITC CODE	PRODUCTS
52.05	Cotton Yarn
55.09	Staple Fibre Yarn
52.08	Cotton Fabrics

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Capacity	Actual Production
Ring Spindles	Nos. In Lakhs	130656	--
Cotton and Synthetic Yarn	Kgs.	--	62.77

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v Central Bank of India

v Canara Bank

v State Bank of India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
i) Long Term Loans
a) Term Loan under TUF Scheme
Central Bank of India	168.164	167.905
Canara Bank	235.000	235.077
b) Canara Bank VRS Loan	35.367	42.851
c) Central Bank of India VRS Loan	0.000	0.796
d) Central Bank of India Working Capital Term Loan	40.484	40.484
e) Canara Bank - Term Loan – II (Term Loans repayable within one year Rs. 206.600 Millions; Previous year Rs. 8.800 Millions)	120.000	183.835
ii) Loans from Banks :
Cash Credit	262.324	233.922
Packing Credit	14.000	12.471
Demand Loan (Against Deposit of Rs.12.031 Millions; Previous year Rs.11.200 Millions)	11.280	10.936
Total	886.619	928.277
Notes: 1) Working Capital Limits from Banks are secured by Charge on book debts and hypothecation of Inventories and paripasu second charge on the fixed assets of Coimbatore, Kovilpatti and Palladam units. 2) Term loans from banks are secured by first charge on fixed assets of Kovilpatti and Palladam Units. 3) Demand loan from banks are secured by fixed deposits with bank. 4) Canara Bank Term Loan-II is secured by first charge on fixed assets of Coimbatore unit.
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
i) Fixed Deposit from :
Directors	0.300	0.300
Others	16.897	15.990
[includes repayable within one year Rs.13.788 Millions (Previous year Rs.12.463 Millions)]
ii) Trade Deposits from Customers	5.301	6.268
iii) Interest accrued and due	0.351	0.295
Total	22.849	22.853

Banking Relations :	--
Auditors :
Name :	Subbachar and Srinivasan Chartered Accountant
Associates :	Lakshmi Card Clothing Manufacturing Company Private Limited Lakshmi Automatic Loom Works Limited Balakumar Shipping and Clearing Agency Private Limited Aloha Tours and Travels (India) Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.100/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
695550	Equity Shares	Rs.100/- each	Rs. 69.555 Millions

Notes:

Of the above:

1,55,059 Shares were allotted for cash consideration

5,13,491 Shares were allotted as Bonus Shares by Capitalisation of Reserves and Securities Premium

27,000 Shares were allotted on 1st April 1979 on Amalgamation of erstwhile The Coimbatore Cotton Mills Limited.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		69.555	69.555	69.555
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1201.071	1154.979	1147.896
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1270.626	1224.534	1217.451
LOAN FUNDS
1] Secured Loans		886.619	928.277	868.888
2] Unsecured Loans		22.849	22.853	22.578
TOTAL BORROWING		909.468	951.130	891.466
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2180.094	2175.664	2108.917
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		675.483	745.843	1693.670
Capital work-in-progress		0.000	0.360	1.670
INVESTMENT		17.755	17.755	17.755
DEFERREX TAX ASSETS		74.283	58.809	35.947
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1323.923	1239.739	167.283
	Sundry Debtors	138.707	105.699	121.727
	Cash & Bank Balances	79.623	89.385	68.498
	Other Current Assets	64.962	44.012	23.864
	Loans & Advances	58.989	66.806	83.702
Total Current Assets		1666.204	1545.641	465.074
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	151.937	95.678	74.433
	Other Current Liabilities	70.957	73.105	90.775
	Provisions	30.737	23.961	43.057
Total Current Liabilities		253.631	192.744	208.265
Net Current Assets		1412.573	1352.897	256.809
MISCELLANEOUS EXPENSES		0.000	0.000	103.066
TOTAL		2180.094	2175.664	2108.917

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1744.535	1337.707	1039.776
		Other Income	54.819	37.767	65.285
		TOTAL	1799.354	1375.474	1105.061
Less	EXPENSES
		Raw Material Consumed	1009.283	667.342	512.243
		Salaries and Wages	207.001	180.622	180.087
		Power and Fuel	280.292	223.475	151.900
		Store Consumed	33.236	39.160	25.584
		Repairs and Maintenance	32.623	31.230	26.404
		Other Manufacturing Expenses	4.339	9.299	3.947
		Administrative Expenses	104.156	79.947	74.314
		Other Expenditure	7.828	5.655	6.797
		Increase / Decrease in Stocks	(94.313)	(0.078)	35.096
		TOTAL	1584.445	1236.652	1016.372
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		214.909	138.822	88.689
Less	FINANCIAL EXPENSES		111.181	100.423	87.934
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		103.728	38.399	0.755
Less	DEPRECIATION/ AMORTISATION		65.311	64.899	62.699
Add/ Less	Exceptional Items		0.000	18.021	(12.072)
Less/ Add	Excess Depreciation of earlier years withdrawn		0.000	0.000	8.482
	PROFIT / (LOSS) BEFORE TAX		38.417	(8.479)	(65.534)
Less	TAX		(14.950)	(22.862)	(46.941)
	PROFIT / (LOSS) AFTER TAX		53.367	14.383	(18.593)
Add	Transfer from General Reserve		0.000	15.779	22.662
Less	APPROPRIATIONS
		Proposed Dividend	6.260	6.260	3.478
		Corporate Tax on Dividend	1.015	1.040	0.591
	BALANCE CARRIED TO THE B/S		46.092	22.862	--
	EARNINGS IN FOREIGN CURRENCY
		Cloth	156.391	63.397	47.822
		Yarn	40.867	31.290	16.603
	TOTAL EARNINGS		197.258	94.687	64.425
	IMPORTS
		Raw Materials	42.238	25.080	11.027
		Stores & Spares	0.543	0.278	0.000
	TOTAL IMPORTS		42.781	25.358	11.027
	Earnings / (Loss) Per Share (Rs.)		76.73	(5.23)	(9.38)

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	487.270	332.370	398.430
Total Expenditure	492.270	337.460	425.680
PBIDT (Excl OI)	(5.000)	(5.090)	(27.250)
Other Income	2.360	25.000	42.660
Operating Profit	(2.640)	19.910	15.410
Interest	27.500	30.500	35.790
Exceptional Items	0.000	0.000	0.000
PBDT	(30.140)	(10.590)	(20.380)
Depreciation	16.130	16.130	16.130
Profit Before Tax	(46.270)	(26.720)	(36.510)
Tax	(1.500)	(2.500)	(33.300)
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	(44.770)	(24.220)	(3.210)
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	(44.770)	(24.220)	(3.210)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.97	1.05	(1.68)
Net Profit Margin (PBT/Sales)	(%)	2.20	(0.63)	(6.30)
Return on Total Assets (PBT/Total Assets}	(%)	1.59	(0.36)	(2.99)
Return on Investment (ROI) (PBT/Networth)		0.03	(0.01)	(0.05)
Debt Equity Ratio (Total Liability/Networth)		0.92	0.93	0.90
Current Ratio (Current Asset/Current Liability)		6.57	8.02	2.23

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

During the year, the Company operated 0.131 million spindles in Palladam and Kovilpatti units as follows:-

	Fig. in million
i) Palladam	0.068
ii) Kovilpatti	0.063
Total :	0.131

The Company was able to marginally increase its utilization levels in both the units in spite of encountering power cuts and power interruptions. Thanks to a phenomenal increase in yarn prices in the last quarter of the year, the Company could record a turnover of around Rs.1800.000 Millions – an increase of over 30% over the previous year.

The Company continued to outsource fabrics and export gainfully. During the year, fabric exports were to the order of Rs.150.000 Millions against Rs.65.000 Millions recorded during the preceding year. Overall the Company could export around Rs.210.000 Millions of yarn and fabrics during the year as against Rs.100.000 Millions done in 2009-10. The Company hopes to export around Rs.250.000 Millions in the current year.

OUTLOOK

Domestic market offers huge demand potential. Export markets are also promising.

The industry needs to be cost effective and cost efficient to take advantage of the huge potential available.

Unfortunately, policies pursued by Government in allowing export of cotton and banning of cotton yarn exports –

both at wrong times had spelt untold miseries to the industry. In their anxiety to protect one or the other segment in the industry, Government unwittingly had caused serious financial problems to the Textile industry as a whole. It will take considerable time to overcome the sufferings which the industry is facing.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Textile industry is a growing one. Spinning, Weaving, Processing and Readymade garment segments are all expanding their activities not only to cater to the ever expanding domestic market but also to meet the export demand. Thanks to the provision of funds under TUF large scale expansions had taken place.

Both Cotton and manmade fibres are available in plenty to cater not only to the needs of the domestic market but also to export to other countries in the world.

However Government policies and regulations have started hurting the industry. The whole value chain has been affected due to untimely policies adopted in allowing Raw cotton exports and banning cotton yarn exports. It will

take considerable time for the industry – especially spinning segment to come out of this turmoil.

However, in the long run, Indian Textile industry is poised to play a leading role in the textile trade in the second half of this decade.

OUTLOOK

The performance of the Company was satisfactory during the year due to improved utilization and better sales realization. The Company could achieve a turnover of around Rs.1800.000 Millions – a 20% increase over last year.

CONTINGENT LIABILITY (AS ON 31.03.2011)

a) Excise duty/Service tax on appeals Rs. 0.771 Million (Previous Year Rs.1.363 Millions)

b) Income tax disputed dues Rs. 7.001 Millions (Previous Year Rs.7.001 Millions)

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER / NINE MONTHS ENDED 31.12.2011

(Rs. In Millions)

No.		Quarter ended			Nine months ended
		31.12.2011	30.09.2011	30.09.2011	31.12.2011
	Particulars	(Unaudited)			(Unaudited)
1	a) Net Sales	392.729	324.572	421.140	1192.621
	b) Other Operating Income	5.705	7.793	4.739	25.449
	Total Income	398.434	332.365	425.879	1218.070
2	Expenditure
	a) (Increase)/Decrease in Stock in trade and work in progress	82.001	(20.280)	(36.568)	75.073
	b) Consumption of Raw materials	158.430	135.525	211.453	508.404
	c) Purchase of Traded Goods	48.473	94.932	38.834	267.129
	d) Employees Cost	45.959	41.962	53.214	133.209
	e) Power & Fuel	45.675	46.812	68.151	148.104
	f) Depreciation	16.129	16.131	16.124	48.389
	g) Other Expenditure	45.139	38.506	44.905	123.485
	h) Total	441.806	353.588	396.113	1303.793
3	Profit/(Loss) from Operations before Other Income, Interest & Exceptional Items(1-2)	(43.372)	(21.223)	29.766	(85.723)
4	Other Income	42.656	25.000	10.985	70.014
5	Profit/(Loss) before Interest and Exceptional Items (3+4)	(0.716)	3.777	40.751	(15.709)
6	Interest	35.790	30.500	26.160	93.794
7	Profit/(Loss) after Interest but before Exceptional Items (5-6)	(36.506)	(26.723)	14.591	(109.503)
8	Exceptional Items	-			-
9	Net Profit/(Loss) from Ordinary Activities before tax (7+8)	(36.506)	(26.723)	14.591	(109.503)
10	Tax expense (Net)	(33.300)	(2.500)	2.000	(37.300)
11	Net Profit/(Loss) from Ordinary Activities after tax (9-10)	(3.206)	(24.223)	12.591	(72.203)
12	Extraordinary Item (Net of tax expense)	-	-		-
13	Net Profit/(Loss) for the period (11-12)	(3.206)	(24.223)	12.591	(72.203)
14	Paid up Equity Share Capital (Face value Rs.100/-)	69.555	69.555	69.555	69.555
15	Reserve (Excluding Revaluation Reserves)	-	-		-
16	Earnings per Shares - Rs. Basic and Diluted Earnings per share
	- Before Extraordinary items	(4.61)	(34.83)	18.10	(103.81)
	- After Extraordinary items	(4.61)	(34.83)	18.10	(103.81)
17	- Number of Shares	318138	322528	327687	318138
18	Promoters and Promoter group shareholding
	a) Pledged / Encumbered
	- Percentage of Shares ( as a % of the total shareholding of promoter and promoter group)	-	-		-
	- Percentage of Shares ( as a % of the total share capital of the Company)	-	-		-
	b) Non-encumbered
	- Number of Shares	377412	373022	367863	377412
	- Percentage of Shares ( as a % of the total shareholding of promoter and promoter group)	100.00	100	100	100
	- Percentage of Shares ( as a % of the total share capital of the Company)	54.26	53.63	52.89	54.26

FIXED ASSETS

· Land

· Building

· Machinery

· Electric Machinery

· Office Equipments

· Vehicles

· Canteen Equipments

WEBSITE DETAILS

PROFILE

History

Subject was established in the year 1910 by the visionary and pioneer late G. Kuppuswamy Naidu.

The history of Subject is in many ways the history of the Textile Industry in Coimbatore. The Subject has contributed to the development of the industry in general in Tamil Nadu and in particular in Coimbatore District by promoting self reliance, research, import substitution, exports and technology. The Company has also demonstrated its staying power by ensuring quality and customer satisfaction as the prime objectives. In fact, as a pioneer, Subject today is looked upon with respect and reverence as a company that paved the way for the rest to follow.

The Company celebrated its Golden Jubilee, Diamond Jubilee and Platinum Jubilee and is now working through the centenary year.

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 :

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. 51.15
UK Pound	1	Rs. 81.79
Euro	1	Rs. 68.34

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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.