MIRA INFORM REPORT

Report Date :

25.02.2012

IDENTIFICATION DETAILS

Name :	SUPER SPINNING MILLS LIMITED
Registered Office :	Elgi Towers, P. B. 7113, 737 – D, Green Fields, Puliakulam Road, Coimbatore 641 045, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.06.1962
Com. Reg. No.:	18-001200
Capital Investment / Paid-up Capital :	Rs.55.000 Millions
CIN No.: [Company Identification No.]	L17111TZ1962PLC001200
IEC No.:	3201001988
PAN No.: [Permanent Account No.]	AADCS0672G
Legal Form :	Subject is a public limited liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer and Exporter of Yarns.
No. of Employees :	2050 (Approximately)

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 4560000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an old and a well established company having satisfactory track. 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
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 / Central Office:	Elgi Towers, P. B. 7113, 737 – D, Green Fields, Puliakulam Road, Coimbatore 641 045, Tamilnadu, India
Tel. No.:	91-422-2311711 / 2314511/ 4351711
Fax No.:	91-422-2311611 / 2315111
E-Mail :	super@ssh.saraelgi.com
Website :	www.superspinning.com
Location :	Owned
Mills :
A and O.E. Unit:	Kirikera, Hindupur – 515 211, Anantapur District, Andhra Pradesh, India
Tel. No.:	91-8556-220522 / 220194
Fax No.:	91-8556-220997.
E-Mail :	supera@ssa.saraelgi.com
B Unit :	Kotnur, Hindupur – 515 213, Anantapur, Andra Pradesh, India
Tel. No.:	91-8556-20182/20187
Fax No.:	91-8556-20858
E-Mail :	superb@ssb.saraelgi.com
C Unit :	D.- Gudalur, Dindigul – 624 620, Tamilnadu, India
Tel. No.:	91-4551-225310/22530
Fax No.:	91-4551-225229
E-Mail :	superc@ssc.saraelgi.com
D Unit :	No. 119 –Dhally Road, Udumalpet-642126, Tamilnadu, India
Tel. No.:	91-4252-223606 / 227611
Fax No.:	91-4252-223658
E-Mail :	superd@ssd.saraelgi.com
Super Sara :	Beerapalli, 515212, Hindupur, Andhra Pradesh, India
Garment Units:	Unit II, New Tirupur, Thekkalur-641654, Coimbatore Dist, Tamilnadu, India
Corporate Office :	Located at Coimbatore, Tamilnadu

DIRECTORS

As on 31.03.2011

Name :	Mr. Vidyaprakash D
Designation :	Chairman
Name :	Mr. Sumanth Ramamurthi
Designation :	Managing Director
Name :	Mr. C S K Prabhu
Designation :	Director
Name :	Mr. D Sarath Chandran
Designation :	Director
Name :	Mr. Sudarsan Varadaraj
Designation :	Director
Name :	Mr. B Vijayakumar
Designation :	Director
Name :	Mr. Vijay Venkataswamy
Designation :	Director

KEY EXECUTIVES

Name :	Mr. R Srikanth
Designation :	Company Secretary
Name :	Mr. A S Thirumoorthy
Designation :	Chief Operating Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2011

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	17371730	31.58
Bodies Corporate	2468300	4.49
Any Others (Specify)	1920926	3.49
Trusts	1270926	2.31
HUF	650000	1.18
Sub Total	21760956	39.57
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	21760956	39.57
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	4400	0.01
Financial Institutions / Banks	5000	0.01
Foreign Institutional Investors	1453500	2.64
Sub Total	1462900	2.66
(2) Non-Institutions
Bodies Corporate	3936504	7.16
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	21717430	39.49
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	5270255	9.58
Any Others (Specify)	851955	1.55
Clearing Members	20030	0.04
Non Resident Indians	279145	0.51
Market Maker	81680	0.15
Hindu Undivided Families	471100	0.86
Sub Total	31776144	57.77
Total Public shareholding (B)	33239044	60.43
Total (A)+(B)	55000000	100.00
(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)	55000000	--

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Yarns.

Products :

Item Code No. (ITC Code)	5205.14
Product Description	Single Yarn of Uncombed Fiber

Item Code No. (ITC Code)	5205.22 – 28
Product Description	Single Yarn of Combed Fiber

Item Code No. (ITC Code)	5205.41 – 48
Product Description	Multiple Yarn of Combed Fiber

Item Code No. (ITC Code)	6109.10
Product Description	Knitted Garments

Exports :

Countries :

· South Korea

· Turkey

· China

· Italy

· France

· Taiwan

· Germany

· Switzerland

· Mauritius

· Spain

· Seribia

· Bangladesh

· Portugal

· Japan

· Sri Lanka

· United Kingdom

· Hong Kong

· UAE

· Poland

· Malaysia

Imports :

Products :

Raw Materials

Countries :

• Korea
• China
• Europe
• Japan
• Italy

Terms :

Selling :

Cash, Credit

Purchasing :

Cash, Credit

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Yarn and Dyed Yarn	KGs	165984 Spindles and 1200 rotors	208.18
Weaving and Knitting	KGs	--	2.77
Garments	PCS	556 Machines	--

GENERAL INFORMATION

No. of Employees :

2050 (Approximately)

Bankers :

• Union Bank of India
• State Bank of India
• Citibank N A
• The Bank of Nova Scotia
• Andhra Bank
• IDBI Bank
• ICICI Bank
• Standard Chartered Bank

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Term Loans from Financial Institutions / Banks
- In Rupee	576.888	796.899
- In Foreign Currency	74.749	174.276
Working Capital Facilities from Banks
- In Rupee	1393.891	1004.962
- In Foreign Currency	0.000	0.00
Total	2045.528	1976.137
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Trade deposits	3.420	3.539
Interest accrued and due on above	0.234	0.241
Total	3.654	3.780

Banking Relations :	--
Auditors :
Name :	Reddy, Goud and Janardhan Chartered Accountants
Subsidiaries :	· Sara Elgi Arteriors Limited · Elgi Building Products Limited
Group Companies :	· Elgi Electric and Industries Limited · Elgi Software and Technologies Limited · Kakatiya Textiles Limited · Sara Elgi Envirotech Limited · Sara Elgi Industrial Research and Development Limited · Super Sara Textiles Limited · Super Farm Products Limited · Sara Elgi Insurance Advisory Services Private Limited · Sara Trading and Industrial Services Limited · Coimbatore Pioneer Fertilizers Limited · ELGI Electric and Industries Limited · ELGI Software and Technologies Limited · ELGI Equipments Limited · ELGI Treads (India) Limited · L. G. Balakrishnan and Bros. Limited · ELGI Ultra Industries Limited · Precot Mills Limited · Meridian Industries Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Re. 1/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
55000000	Equity Shares	Re. 1/- each	Rs.55.000 Millions

Note:

a) Of the above 2750000 of Re.1/- each were issued as fully paid up bonus shares by capitalisation of reserves.

b) 55,00,000 Equity shares of Rs.10/- each fully paid up were sub-divided into 55000000 Equity shares of Re.1/- each fully paid, during September 2006.

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		55.000	55.000	55.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		999.276	860.225	857.058
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1054.276	915.225	912.058
LOAN FUNDS
1] Secured Loans		2045.528	1976.137	2402.772
2] Unsecured Loans		3.654	3.780	4.277
TOTAL BORROWING		2049.182	1979.917	2407.049
DEFERRED TAX LIABILITIES		127.314	129.366	159.906
TOTAL		3230.772	3024.508	3479.013
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1430.352	1671.033	1914.445
Capital work-in-progress		6.380	0.970	30.499
INVESTMENT		282.437	290.297	274.212
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1409.568	584.650	725.556
	Sundry Debtors	218.148	197.836	240.262
	Cash & Bank Balances	49.736	29.010	41.523
	Other Current Assets	39.173	88.324	39.631
	Loans & Advances	1110.827	1125.609	1232.497
Total Current Assets		2827.452	2025.429	2279.469
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1079.578	616.240	1042.125
	Other Current Liabilities	189.522	101.350
	Provisions	46.749	245.631	0.000
Total Current Liabilities		1315.849	963.221	1042.125
Net Current Assets		1511.603	1062.208	1237.344
MISCELLANEOUS EXPENSES		0.000	0.000	22.513
TOTAL		3230.772	3024.508	3479.013

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	4768.972	3853.785	3664.479
		Other Income	69.354	19.068	27.273
		TOTAL (A)	4838.326	3872.853	3691.752
Less	EXPENSES
		Raw Materials	2980.984	2005.256	2011.858
		Salaries, Wages, Bonus, etc.	407.319	378.523	360.839
		Power & Fuel	446.741	342.794	305.522
		Stores	211.971	162.860	143.889
		Repairs & Maintenance	89.477	68.869	65.869
		Processing Charges	34.920	90.589	300.862
		Selling Expenses	155.233	131.617	156.103
		Administrative Expenses	70.169	67.222	152.906
		Increase/(Decrease) in Finished Goods	(132.483)	191.747	16.826
		TOTAL (B)	4264.331	3439.477	3514.674
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		573.995	433.376	177.078
Less	INTEREST (D)		217.676	215.824	280.981
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		356.319	217.552	(103.903)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		208.122	235.237	260.671
	PROFIT BEFORE TAX (E-F) (G)		148.197	(17.685)	(364.574)
Less	TAX (H)		1.852	(30.340)	(98.949)
	PROFIT AFTER TAX (G-H) (I)		150.049	12.655	(265.625)
Less	PRIOR YEAR EXPENSES		0.000	0.144	0.825
Less	TAXES RELATING TO EARLIER YEARS		10.996	9.344	7.808
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(155.073)	(158.240)	116.018
	BALANCE CARRIED TO THE B/S		(16.020)	(155.073)	(158.240)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	894.600	1036.588	1136.280
	TOTAL EARNINGS		894.600	1036.588	1136.280
	IMPORTS
		Raw Materials	32.676	131.601	276.700
		Stores & Spares	34.526	399.937	23.268
		Capital Goods	2.938	0.000	7.895
	TOTAL IMPORTS		70.140	531.538	307.863
	Earnings Per Share (Rs.)		2.53	0.06	(4.99)

QUARTERLY RESULTS

PARTICULARS	30.06.2011 1^st Quarter	30.09.2011 2^nd Quarter	31.12.2011 3^rd Quarter
Net Sales	939.900	1009.300	811.100
Total Expenditure	1030.700	1201.200	875.300
PBIDT (Excl OI)	(90.800)	(191.900)	(64.200)
Other Income	3.600	9.100	51.100
Operating Income	(87.200)	(182.800)	(13.100)
Interest	82.800	82.300	68.900
Extraordinary Items	0.000	0.000	0.000
PBDT	(170.000)	(265.100)	(82.000
Depreciation	49.600	49.800	47.700
Profit Before Tax	(219.600)	(314.900)	(129.700)
Tax	(40.600)	(97.600)	(12.800)
Provisions and contingencies	0.00	0.000	0.000
Profit After Tax	(179.000)	(217.300)	(116.900)
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	(179.000)	(217.300)	(116.900)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.10	0.33	(7.20)
Net Profit Margin (PBT/Sales)	(%)	3.11	(0.46)	(9.95)
Return on Total Assets (PBT/Total Assets}	(%)	3.48	(0.48)	(8.69)
Return on Investment (ROI) (PBT/Networth)		0.14	(0.02)	(0.40)
Debt Equity Ratio (Total Liability/Networth)		3.19	3.22	3.78
Current Ratio (Current Asset/Current Liability)		2.15	2.10	2.19

LOCAL AGENCY FURTHER INFORMATION

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Conditions and Review of Operations

The Indian textile and clothing industry witnessed noticeable improvement during the course of the year. The regulatory restrictions on export of cotton yarn had an adverse impact on the working during the last quarter of the year.

Eventhough, Cotton Production during the year was higher compared to the previous year prices were ruling high due to perceived shortage of cotton globally and increased yarn production. Added to this, Government allowed higher quantity of cotton exports from the month of October 2010. Issues like power shortage and non-availability of quality manpower continued to affect the industry and company’s operations.

During the year the company was able to effect an improved performance through dedicated efforts aimed at improving operational efficiency, quality enhancement, focus on optimal product mix and effective cost saving practices, all of which resulted in improved sales and enhanced profitability. The remunerative prices and good demand for yarn for the most part of the year helped the company overcome the escalation in cost of raw material to a certain extent

Company outlook

The demand for cotton yarn in the current year is on downward trend and uncertain. The cotton price have come down recently due to global price pressure and reduced domestic demand. Consequently, yarn prices have dropped steeply and will have an impact on profit.

With a normal monsoon forecast, the prospects of a good cotton crop in India in the ensuing season are bright. Global outlook is also good which will ensue moderation in cotton prices.

Recognition and Reward

The Directors are glad to inform that Super - B unit of the company has received ”Silver” Award - 2010 from “Innovative Quality Circle” in International level competition from “International Convention On Quality Concepts”.

Contingent Liabilities:

Particulars	31.03.2009 [Rs. In Millions]
Letters of Credit	143.667
Bank Guarantees	153.352
Bills discounted with Company's Bankers	303.057
Disputed Demands from Income Tax Authorities	104.613
Disputed Excise Duty Liability	6.308
Disputed Sales Tax Liability	28.705
Corporate Guarantees to banks	--

Fixed Assets

• Land
• Buildings
• Plant and Machinery
• Office Furniture and Fittings
• Motor Vehicles
• ERP Software
• Capital Work in-progress

WEBSITE DETAILS:

Business Description

Subject is an India-based company. The Company operates in the textile segment. During the fiscal year ended March 31, 2011 (fiscal 2011), the Company manufactured 20.818 million kilograms of yarn and dyed yarn, and .277 million kilograms weaving and knitting. During fiscal 2011, the Company had an installed capacity of 165,984 spindles and 1,200 rotors for yarn and dyed yarn, and 556 machines for garments. The Company manufactures regular grey yarn, Single / Double (Ring Double / TFO), Compact Single and Double, Elitwist, gassed yarns, open-end yarn, core-spun yarn, slub-yarn, zero twist yarn and woven fabrics. The product range in weaving include any kind of fabric made from its own product range of 100% combed cotton ranging from Ne 10s to Ne 120s and also made from Slub yarn, Core spun lycra and others. On March 29, 2011, the Company’s wholly owned subsidiary, Sara Elgi Arteriors Limited, acquired 58.32% interest of Elgi Building Products Limited. For the fiscal year ended 31 March 2010, Super Spinning Mills Limited's revenues totaled RS3.96B. Net income totaled RS4.4M. Financials are not comparable as the company has not reported the comparative consolidated financials for the prior period. The Company is engaged in manufacturing of combed cotton yarn for knitting and weaving. It offers regular grey yarn, gassed yarns, open end yarn and compact single and double, elitwist.

PROFILE:

In modern fashion technology, the demand for perfection begins right at the birth of the raw material, permeates through every single process, till the highly discerning customer dons the finished garment. It is this demand for perfection that has spurred the growth of an organisation and its corporate philosophy.

Those who can furnish clients with the best quality, competitive price, excellent customer services and prompt delivery can only survive in the market. Subject takes immense pride in perceiving its role as the comprehensive architect of every single yarn and garment that its produces.

SARA ELGI is a multi-unit, multi-interest business group with a wide range of industrial activity, an organisation that has founded its evolution on value-based commercial practice. Subject was established in 1962 with an initial capacity of 12,000 spindles.

Over its four decades of chequered growth it has expanded to 1,30,000 spindles spread over 3 operational units. The company commenced operations with the manufacture of grey, gassed, mercerised and dyed cotton yarn. Today, the company has carved a niche for itself on the textile map of the country.

PRESS RELEASE

Appointment of Company Secretary

04 April 2011

Super Spinning Mills Limited has informed the Exchange that the Board of Directors at their meeting held on March 29, 2011 appointed Mr. R Srikanth as Company Secretary and Compliance Officer of the Company with effect from April 01, 2011.

Resignation of Company Secretary

30 March 2011

Super Spinning Mills Limited has informed the Exchange that Mr. T V Thulsidass, Company Secretary and Compliance Officer of the Company has tendered his resignation on March 21, 2011 and the same has been accepted by the Board of Directors at their meeting held on March 29, 2011.

Super Spinning Mills Limited Files Patent Application for a Nose Roller Assembly

16 April 2011

India based Super Spinning Mills Limited filed patent application for a nose roller assembly. The inventors are Iype Cherian and Ramamurthi, Lakshminaickenpalayam Govindaswamy.

Super Spinning Mills Limited filed the patent application on Oct. 28, 2005. The patent application number is 1566/CHE/2005 A. The international classification number is D01H5/00.

According to the Controller General of Patents, Designs and Trade Marks, "A nose roller assembly comprising an inner non-rotating shaft; at least one roller co-axial with the shaft and free to rotate about said shaft by means of at least one bearing disposed between the shaft and roller; at least one portion of the shaft extending beyond the roller and being fixedly connected to a fixing support a fixing means; characterized in that the fixing support comprises an outer shell portion having a radius of curvature substantially equal to that of the roller and arranged such that the outer shell portion and roller present a substantially continuous surface to an apron passing over the outer shell portion and roller."

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.46.75
UK Pound	1	Rs. 59.36
Euro	1	Rs.70.92

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.