MIRA INFORM REPORT

Report Date :

02.03.2012

IDENTIFICATION DETAILS

Name :	BANNARI AMMAN SPINNING MILLS LIMITED
Registered Office :	252 Mettupalayam Road, Coimbatore – 641043, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	10.07.1989
Com. Reg. No.:	18-002476
Capital Investment / Paid-up Capital :	Rs.157.543 Millions
CIN No.: [Company Identification No.]	L17111TZ1989PLC002476
TAN No.: [Tax Deduction & Collection Account No.]	CMBB03009G/ CMBB03055D
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacture of Cotton Yarn, Woven and Coated Fabrics and Wind Power Generation
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 8300000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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 :	252 Mettupalayam Road, Coimbatore – 641043, Tamilnadu, India
Tel. No.:	91-422-2435555
Fax No.:	91-422-2434446
E-Mail :	shares@bannarimills.com ram@bannarigroup.com
Website :	http://www.bannarimills.com
Factory/ Branch Offices :	Spinning Mills Moorpatti Post, Vadamadurai Village, Dindigul - Trichy National Highway Dindigul - 624 802, Tamilnadu, India. Tel No.: 91-4551-238220 sales@bannarimills.com exports@bannarimills.com Weaving Mills Weaving Division) Kunnathur Village, Ganesapuram (PO), Coimbatore – 641107, Tamilnadu, India.

DIRECTORS

(AS ON 31.03.20110

Name :	Dr. S. V. Balasubramaniam
Designation :	Chairman
Name :	Mr. S. V. Alagappan
Designation :	Vice Chairman
Name :	Mr. S. V. Arumugam
Designation :	Managing Director
Name :	Mr. S. K. Sundaraman
Designation :	Executive Director
Name :	Mr. V. Venkata Reddy
Designation :	Director
Name :	Mr. K N V Ramani
Designation :	Director
Name :	Mr. C. S. Prabhu
Designation :	Director
Name :	Dr. K R Thillainathan
Designation :	Director
Name :	Mr. S. Palaniswami
Designation :	Director
Name :	Mr. K. Sadhasivam
Designation :	Director

KEY EXECUTIVES

Name :	Mr. A. Senthil
Designation :	Chief Executive Officer
Name :	Mr. N. Krishnaraj
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.12.2011)

Category	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	168,017	1.07
Bodies Corporate	8,583,233	54.48
Sub Total	8,751,250	55.55
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	8,751,250	55.55
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	287,214	1.82
Sub Total	287,214	1.82
(2) Non-Institutions
Bodies Corporate	1,649,580	10.47
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1,808,180	11.48
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	3,147,589	19.98
Any Others (Specify)	110,456	0.70
Clearing Members	14,881	0.09
Non Resident Indians	95,573	0.61
Trusts	2	-
Sub Total	6,715,805	42.63
Total Public shareholding (B)	7,003,019	44.45
Total (A)+(B)	15,754,269	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)	15,754,269	100.00

BUSINESS DETAILS

Line of Business :

Manufacture of Cotton Yarn, Woven and Coated Fabrics and Wind Power Generation

Products :

Products Description	Item Code No.
Cotton Yarn – Grey	520511.01

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Yarn	Kgs	143232 Spindles	22234774
Cotton Waste	Kgs	--	7169957
Fabrics	Mtrs	135 Looms	8896448
Wind Energy	Units	29950 KWh	53759006
Processing		2400000 Mtrs per years	--
Coated Fabric	Mtrs	--	1883855
Quick Dr	Mtrs	--	211754
Canvass	Mtrs	--	80369

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· The Karur Vysya Bank Limited

· Corporation Bank

· ICICI Bank Limited

· Oriental Bank of Commerce

· Indian Overseas Bank

· Bank of Maharashtra

· Indian Bank

· IDBI Bank

· Allahabad Bank

· Indian Bank

· ICICI Bank Limited

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Banks
Term Loans	3615.637	3885.394
Cash Credit Loans/ Short Terms Loan	1076.668	715.571
Packing Credit	389.260	60.000
Total	5081.565	4660.965
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Tamilnadu Government – Interest Free Sales Tax loan	40.106	56.937
Total	40.106	56.937

Banking Relations :	--
Auditors :
Name :	P N Raghavendra Rao and Company Chartered Accountant
Address :	Coimbatore – 641009, Tamilnadu, India
Internal Auditors
Name :	Srivatsan and Gita Chartered Accountant
Address :	Coimbatore – 641018, Tamilnadu, India
Related Parties :	· Shiva Distilleries Limited · Shiva Texyarn Limited · Bannari Amman Sugars Limited · Anamallais Automobiles Private Limited · Annamallai Infrastructures Limited · Shiva Cargo Movers Limited · Bannari Amman Apparel Private Limited · Bannari Amman Flour Mill Limited · Sakthi Murugan Transports Limited

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
16000000	Equity Shares	Rs.10/- each	Rs.160.000 Millions
50000	Cumulative Preference Shares	Rs.100/- each	Rs.5.000 Millions
	Total		Rs.165.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15754269	Equity Share	Rs.10/- each	Rs.157.543 Millions

NOTE:

(Of the above 5250750 Equity shares of Rs.10/- each have been issued as fully paid up Bonus Shares by Capitalisation of Reserves)

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		157.543	157.543	157.543
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1919.690	1568.392	1445.479
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2077.233	1725.935	1603.022
LOAN FUNDS
1] Secured Loans		5081.565	4660.965	4119.335
2] Unsecured Loans		40.106	56.937	73.144
TOTAL BORROWING		5121.671	4717.902	4192.479
DEFERRED TAX LIABILITIES		566.797	368.850	295.948
TOTAL		7765.701	6812.687	6091.449
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4805.698	4606.095	4571.419
Capital work-in-progress		5.160	119.292	39.240
Foreign Currency Monetary Item Translation Reserve A/c		0.000	25.828	59.963
INVESTMENT		174.926	111.697	80.144
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1984.876	943.237	1009.109
	Sundry Debtors	369.258	283.664	196.359
	Cash & Bank Balances	49.215	141.361	39.118
	Other Current Assets	326.794	154.837	177.095
	Loans & Advances	590.934	712.314	351.717
Total Current Assets		3321.077	2235.413	1773.398
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	0.000	0.000	0.000
	Other Current Liabilities	380.554	230.878	401.474
	Provisions	160.606	54.760	31.241
Total Current Liabilities		541.160	285.638	432.715
Net Current Assets		2779.917	1949.775	1340.683
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		7765.701	6812.687	6091.449

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	5492.437	3553.189	2868.276
		Other Income	161.583	8.512	9.704
		TOTAL	5654.020	3561.701	2877.980
Less	EXPENSES
		Stock Adjustment	(406.770)	10.449	(41.265)
		Raw Materials Consumed	3656.434	2250.117	1885.179
		Traded Goods Purchased	61.373	7.370	84.835
		Power and Fuel	249.672	174.934	184.055
		Employees Cost	158.877	103.011	92.906
		Rent Paid	3.411	3.586	2.137
		Rates and Taxes	13.628	5.528	5.288
		Insurance	8.819	7.243	8.211
		Repairs and Maintenance	128.517	79.889	47.373
		Administrative Expenses	58.618	69.479	32.474
		Expenses on TNEB Infrastructure	23.287	0.000	0.000
		Remuneration to Managerial Personnel	30.935	13.369	7.533
		Packing Material Consumed	60.684	50.088	43.854
		Selling and Distribution Charges	136.508	102.515	63.503
		TOTAL	4183.993	2877.578	2416.083
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		1470.027	684.123	461.897
Less	FINANCIAL EXPENSES		259.188	204.131	147.969
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1210.839	479.992	313.928
Less/ Add	DEPRECIATION/ AMORTISATION		372.003	256.530	218.084
Less	Earlier year depreciation on A/c of change in method of depreciation		252.849	--	--
Add	Deferred Tax Asset on above Withdraw		85.943	--	--
	PROFIT BEFORE TAX		671.930	223.462	95.844
Less	TAX		283.890	72.903	15.360
	PROFIT AFTER TAX		388.040	150.559	80.484
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		51.337	78.425	23.872
Less	APPROPRIATIONS
		Transfer to General Reserve	300.000	150.000	7.500
		Equity Dividend	31.509	23.631	15.754
		Tax on Corporate Dividend	5.233	4.016	2.677
	BALANCE CARRIED TO THE B/S		102.635	51.337	78.425
	EARNINGS IN FOREIGN CURRENCY		1391.147	816.471	466.449
	IMPORTS
		Raw Materials	245.601	306.106	259.945
		Capital Goods and Spares	90.654	129.386	66.483
	TOTAL IMPORTS		336.255	435.492	326.428
	Earnings Per Share (Rs.)		24.63	9.56	5.11

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	1302.660	1266.550	966.520
Total Expenditure	1104.930	1363.890	859.230
PBIDT (Excl OI)	197.730	(97.340)	107.290
Other Income	0.000	0.000	0.000
Operating Profit	197.730	(97.340)	107.290
Interest	86.900	81.310	79.100
Exceptional Items	0.000	00	0.000
PBDT	110.830	(178.650)	28.190
Depreciation	91.190	91.480	91.430
Profit Before Tax	19.640	(270.130)	(63.240)
Tax	(12.670)	(94.700)	(17.800)
Provisions and contingencies	00	00	0.000
Profit After Tax	32.310	(175.430)	(45.440)
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	32.310	(175.430)	(45.440)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.86	4.23	2.80
Net Profit Margin (PBT/Sales)	(%)	12.23	6.32	3.34
Return on Total Assets (PBT/Total Assets}	(%)	8.27	3.27	1.51
Return on Investment (ROI) (PBT/Networth)		32.35	12.95	5.98
Debt Equity Ratio (Total Liability/Networth)		2.73	2.90	2.89
Current Ratio (Current Asset/Current Liability)		6.14	7.83	4.10

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF OPERATIONS

Spinning Division

The Spinning Mills produced 22477.00 tonnes – inclusive of purchased quantity (242.23 tonnes) of Yarn and sold 21015.25 tonnes (19294.03 tonnes) of Yarn. The sales include 7646.09 tonnes (5413.49 tonnes) by way of Export. The total sales of this division amounted to 44329.66 (Rs.2679.824 Millions) of which export sales amounted to Rs.17989.34 (Rs.750.700 Millions) constituting 40.58% (28.01%) of the total revenue. The demand and realizations of finished products in Spinning Division were encouraging.

Weaving Division

The Weaving Division specializes in manufacturing wide-width cotton fabric. During the year, 86.33 Lakh Metres (60.84 Lakh Metres) of Fabric were produced and 76.13 Lakh metres (64.78 Lakh metres) of Fabric were sold.

Wind Mill Division

The company has 4 windmills of 1250 KW each totalling 5 MW in Radhapuram Taluk, Tirunelveli District, Tamilnadu, 25Nos Windmills, each of 800 KW capacity totaling 20 MW capacity in Dharapuram Taluk, Tiruppur District and Palani Taluk,

Dindigul District Tamilnadu and 3 Windmills of 1650KW each in Kongalnagaram, Udumalpet Taluk Tirupur District, Tamilnadu. The total installed capacity of Windmills is 29.95 MW and the whole of the power generated is captively consumed by the Spinning Units.

The windmills produced 563.67 Lakh units of wind energy as against 522.26 Lakh units produced in the last year.

Processing and Technical Textiles Division

Dindigul District, Tamilnadu and 3 Windmills of 1650KW each in Kongalnagaram, Udumalpet Taluk, Tirupur District, Tamilnadu. The total installed capacity of Windmills is 29.95 MW and the whole of the power generated is captively consumed by the Spinning Units.

The windmills produced 563.67 Lakh units of wind energy as against 522.26lakh units produced in the last year.

Prospects for the current year and Expansions

The Controls and restriction on Export of Cotton, yarn and the Court order on Dyeing units in Tirupur have adversely affected the textile industry. The Company has taken steps to enlarge the product range and sell the products in the upcountry markets and to corporate buyers to tide over the crises.

MANAGEMENT DISCUSSIONS

COMPANY'S BUSINESS

The Company's business is manufacture of cotton yarn, woven and coated fabrics and wind power generation. The company has two modern spinning units near Dindigul, Tamilnadu with installed capacity of 1,43,232 spindles, Weaving unit near Palladam, Tamilnadu with installed capacity of 135 Looms, Processing and Technical Textiles near Annur, Tamilnadu with capacity to produce 24 Lakhs meters of coated fabric per annum and 32 windmills with installed capacity 29.95 MW of Power. The whole of the power produced by the wind mills is captively consumed by the spinning units.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The contribution of Textile industry to growth of the Indian economy, in terms of, industrial production, employment generation and foreign exchange earnings is significant. The Indian textile Industries contributes around 4% the GDP of the country, 14% to the Industrial production and 16.63% of the export earnings comes from Textiles Sector. Textile Sector is the second largest generator of employment after Agriculture. Contribution of India to the world Textiles production is 12% and 40% of the Textiles produced is exported outside the country.

Recently, the government has introduced curbs on export of cotton and waste cotton, cotton yarn to curb the increase in price of these items.

OUTLOOK

With the optimum utilization of very modern machinery, it is expected that the Company will be able to improve efficiency and successfully face global competition.

The performance of our company in the Domestic market has been quite satisfactory. The Company continues to do well in export of cotton yarn to countries like Turkey, Egypt, Korea, Taiwan, Hon kong, China, Sri Lanka, Bangladesh, Singapore, Portugal, Australia, Brazil and Poland among others. The yarn produced by our company is recognized in the International market due to strict adherence to delivery schedules and maintaining of consistent high quality.

The company is focusing on "Product Mix Optimization" where by product mix is planned, continuously monitored and reviewed to achieve best possible results in yarn production.

CONTINGENT LIABILITY:

I] The amount of duty concession availed against the pending obligation (For import of capital goods under concessional customs duty linked to fulfillment of export obligations) for the year ended 31.03.2011 is Rs.169.200 Millions. (31.03.2010- Rs.312.500 Millions).

II] The Central Excise Department has demanded the Excise Duty rebate received by the company on account of Export of Yarn. The amount of demand is Rs.5.909 Millions (31.03.2010- Rs. Nil)

FIXED ASSETS:

· Land and Site Development

· Building

· Plant and Machinery

· Office Equipments

· Furniture and Fittings

· Vehicles

· Tools and Implements

WEBSITE DETAILS:

MANAGEMENT

Dr. S V Balasubramaniam

Dr. S. V. Balasubramaniam, aged 71 years is the Chairman and Promoter of the Company. He holds a Bachelors degree in Commerce from Madras University and is a qualified Chartered Accountant as well as a Company Secretary. He is the recipient of the prestigious Doctor of Science (Honaris Causa) from Tamil Nadu Agricultural University, Coimbatore in the presence of Hon. President of India Dr. Abdul Kalam.

He has more than 45 years experience in sugar, textile and engineering sector. He was the president of Indian Sugar Mills Association in the year 1990-91 and 2002-03. He was awarded with the "Seva Rathnakara Award" in the year 2000 from Sri Adichunhangiri Mahasamsthana Math, Sringeri, Karnataka, the "Baktha Siromani Award" by H. H. Kanchi Shankaracharaya and the "TNF Excellence Award" from Tamil Nadu Foundation, USA.

Mr. S V Alagappan

Mr. S. V. Alagappan, aged 66 years is the Vice-Chairman and Promoter of the Company. He is a qualified law graduate and has experience in the field of textile for more than two decades. As Vice-Chairman, he assists the Chairman of the Company on policy matters, project expansions, finance outlays and Investments.

Mr. S V Arumugam

Mr. S. V. Arumugam, aged 60 years is the Managing Director and promoter of the Company. He holds a Bachelors Degree in Science and is a qualified Chartered Accountant. He has more than two decades of experience in the textile industry in planning, procurement, execution and management. He is responsible for the overall operations of the Company inter alia finance, purchase, sales and marketing.

He was the Deputy Chairman of Southern India Textile Mills Association (SIMA) which has 301 Textile Mills as its Members and was the past Chairman of Confederation of Indian Industry, Coimbatore Chapter. He is a Committee Member of the Indian Cotton Mills Federation (ICMF), Mumbai. He is the Honorary Secretary of Indian Wind Power Association, Chennai.

Mr. S. K. Sundararaman

Mr. S. K. Sundararaman, aged 37 years is an MBA from the Judge Institute of Management Studies, Cambridge University, UK. He joined the Board as a Director on May 24, 2004 and was elevated as Executive Director on June 27, 2005. He is responsible for the weaving division and new initiatives. He has wide experience in the field of Information Technology and Technical Education, especially in the field of Textile Technology.

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.49.15
UK Pound	1	Rs.78.25
Euro	1	Rs.65.57

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.