MIRA INFORM REPORT

Report Date :

23.05.2012

IDENTIFICATION DETAILS

Name :	INDO RAMA SYNTHETICS (INDIA) LIMITED
Registered Office :	31-A, MIDC Industrial Area, Butibori – 441 122, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.04.1986
Com. Reg. No.:	11-166615
Capital Investment / Paid-up Capital :	Rs.1518.200 Millions
CIN No.: [Company Identification No.]	L17124MH1986PLC166615
TAN No.: [Tax Deduction & Collection Account No.]	BPLI00021A
PAN No.: [Permanent Account No.]	AAALI1530L
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing of Cotton, Synthetic and Blended Yarn.
No. of Employees :	6000 (Approximately)

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 25000000
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/ Factory :	31-A, MIDC Industrial Area, Butibori – 441 122, Maharashtra, India
Tel. No.:	91-7104-663000-01
Fax No.:	91-7104-663200
E-Mail :	sanjayjain@indorama.ind.com naveenc.jain@indorama-ind.com jayant.sood@indorama-ind.com
Website :	http://www.indoramaindia.com
Corporate Office :	20^th Floor, DLF Square, DLF Phase II, NH 8, Gurgaon - 122 003, Haryana, India
Tel. No.:	91-124-4997000
Fax No.:	91-124-4997070
E-Mail :	ranvirk.vij@indorama-ind.com reshab.raizada@indorama-ind.com rajiv.dayal@indorama-ind.com corp@indorama-ind.com
Marketing Offices:	Bhilwara 8S-27/28, Basant Vihar, K.C. Textile Building, Opposite Circuit House, Bhilwara - 311 001, India Tel. No.: 91-1482-237733 Fax: 91-1482-237733 Coimbatore “Sarang” 1st Floor, 8/5 Race Course Road, Coimbatore - 641 018, Tamilnadu, India Tel. No.: 91-422 – 2220456 Fax No.: 91-422 - 2220658 Delhi 4^th Floor, Dr. Gopal Das Bhawan, 28 Barahamba Road, New Delhi - 110 001, India Tel. No.: 91-11-47277700 Fax No.: 91-11-47277800 Ludhiana B-XIX-122/2, 4th Floor, Golden Plaza, The Mall Road, Ludhiana - 141 001, India Telefax No.: 91-161-5045068 / 2442752 Silvassa Madhuban Apartments, Plot No. 15/3/2, Opposite Petrol Pump Amli, Silvassa – 396 230, UT of Dadra and Nagar Haveli, India Tel: 91-260-2643416 / 17/ 2644519 Surat 202, Trividh Chambers, Opposite Fire Brigade Station, Ring Road, Surat – 395 002, Gujarat, India Tel. No.: 91-261-2339368 / 2328757 / 2350701 Tirupur Alagappa Complex, First Floor, 4/5 Palladam Road, Opposite Tamilnadu Theatres, Tirupur – 641 605, Tamilnadu, India Tel. No.: 91-421-2217994

DIRECTORS

AS ON 31.03.2011

Name :	Mr. M. L. Lohia
Designation :	Chairman Emeritus
Name :	Mr. O. P. Lohia
Designation :	Chairman and Managing Director
Name :	Mr. O. P. Vaish
Designation :	Director
Name :	Mr. A. K. Ladha
Designation :	Director
Name	Dr. Arvind Pandalai
Designation	Director (w.e.f. 20.07.2009)
Name	Mr. Vishal Lohia
Designation	Whole Time Director
Qualification	Bachelors Degree in Financial and Economics, USA
Date of Appointment :	28.06.2002

KEY EXECUTIVES

Name :	Mr. Jayant Sood
Designation :	Company Secretary
CORPORATE EXECUTIVES
Name :	Mr. Hemant Sharma
Designation :	Business Head (Polyester)
Name :	Mr. Anant Kishore
Designation :	Chief Operating Officer (Polyester)
Qualification :	B.Sc. Chem, Engineering, PGDB and IM
Date of Appointment :	07.07.1999
Name :	Mr. Roshan K. Nair
Designation :	Vice President (Power)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2012)

Names of Category	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	53,074,710	37.50
Sub Total	53,074,710	37.50
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	961,724	0.68
Bodies Corporate	43,288,057	30.59
Sub Total	44,249,781	31.27
Total shareholding of Promoter and Promoter Group (A)	97,324,491	68.77
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	5,384,162	3.80
Financial Institutions / Banks	2,418,843	1.71
Insurance Companies	4,006,850	2.83
Foreign Institutional Investors	13,051,978	9.22
Sub Total	24,861,833	17.57
(2) Non-Institutions
Bodies Corporate	8,487,492	6.00
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	6,867,545	4.85
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	3,989,521	2.82
Sub Total	19,344,558	13.67
Total Public shareholding (B)	44,206,391	31.23
Total (A)+(B)	141,530,882	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	10,291,360	-
Sub Total	10,291,360	-
Total (A)+(B)+(C)	151,822,242	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Cotton, Synthetic and Blended Yarn.

Products :

Products Description	Item Code No.
Polyester Staple Fibre	55032000
Polyester Filament Yarn Partially Oriented	54024200
Draw Texturised Yarn of Polyester	54023300

Exports :

Countries :

· Algeria, Iran

· Madagascar

· Latin American Countries

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity (Note i)	Actual Production
Polyester Staple Fibre	TPA	Note ii	263550	184081
Polyester Filament Yarn	TPA	Note ii	259000	169516
Polyester Texturised Yarn	TPA	Note ii	63200	45527
Polyester Clips	TPA	Note ii	87500	10745
Electrical Power	MWPH	NA	82.5	29.8

Notes:

i) The Company manufactures varying denier/ qualities of fibers/ yarn. The above capacity is calculated based on a mix of product range as certified by the management and relied on by the auditors being a technical matter.

ii) Delicensed vide notification no. 477 (E) dated 27 July 1991 and press note No 1 (1998 series) dated 8 June 1998.

iii) TPA-Tonnes per annum

iv) MWPH-Mega watt per hour

v) Pursuant to press note no. 2/2011 dated 8 February 2011, issued by Ministry of Corporate Affairs, disclosures required by part – II, paras 3(i) (a), 3(ii)(a) and 3(ii)(b) of Schedule VI to the Companies Act, 1956, have not been given.

GENERAL INFORMATION

No. of Employees :

6000 (Approximately)

Bankers :

· Axis Bank Limited

· Bank of India

· HDFC Bank Limited

· Oriental Bank of Commerce

· Punjab National Bank

· State Bank of India

· State Bank of Travancore

· Standard Chartered Bank

Institutions :

· BHF – Bank AG

· DEG – Deutsche Investitions und

· Entwicklungsgesellschaft mbH

· IKB Deutsche Industriebank AG

· Life Insurance Corporation of India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loans and advances from banks
Cash / export credit facilities	905.700	1759.730
Term loans
Rupee loans	2162.700	3389.415
Foreign currency loans	2104.200	2460.641
Other loans and advances
Rupee loans	187.600	250.138
Foreign currency loans	724.600	778.033
Interest accrued and due on loans	30.800	22.270
Total	6115.600	8660.227
NOTES : Loans and advances from banks: - cash/other credit facilities from banks amounting to Rs.905.700 Millions (Previous year Rs.1759.700 Millions) are secured by way of hypothecation of stocks of raw materials, work-in-progress, finished goods, stores and spares, packing material, goods at port/in transit/under shipment, outstanding money, book debts, receivables and other current assets of the Company, both present and future. These loans are further secured by a second charge on all the immovable properties of the Company, both present and future. 2. Rupee term loans from banks comprising: - amounts aggregating Rs.1425.000 Millions (Previous year Rs. 2137.100 Millions) are secured by equitable mortgage on all the immovable properties (excluding land in the state of Gujarat) by way of deposit of title deeds and hypothecation of movable assets of the Company (save and except book debts and assets exclusively hypothecated to Banks and Bodies Corporate) including movable machinery, machinery spares, tools and accessories, both present and future, ranking pari-passu with the charges created/ to be created in favour of Banks and Financial Institution for securing Rupee and Foreign currency term loans. - amounts aggregating Rs.359.800 Millions (Previous year Rs.614.800 Millions) availed from bank is secured by first specific charge over the specific assets purchased under the loan agreement for thermal power project of the Company. - amounts aggregating Rs. Nil (Previous year Rs.37.500 Millions) are secured by way of subservient charge on the current and fixed assets of the Company. - amounts aggregating Rs. Nil (Previous year Rs.26.300 Millions) are secured by way of subservient charge on the movable fixed assets of the Company. - working capital term loans aggregating Rs.376.200 Millions (Previous year Rs.573.800 Millions) are secured by way of first charge on the Company’s entire fixed assets ranking pari-passu with other banks. - car loan from bank of Rs.1.700 Millions (Previous year Rs. Nil) is secured by way of hypothecation of specific vehicle. 3. Foreign currency term loans from banks comprising: - amounts aggregating Rs. Nil (Previous year Rs.61.500 Millions) are secured by equitable mortgage on all the immovable properties (excluding land in the state of Gujarat) by way of deposit of title deeds and hypothecation of movable assets of the Company (save and except book debts and assets exclusively hypothecated to Banks and Bodies Corporate) including movable machinery, machinery spares, tools and accessories, both present and future, ranking pari-passu with the charges created/to be created in favour of banks and financial institution for securing rupee and foreign currency term loans. - amounts aggregating Rs.2104.200 Millions (Previous year Rs.2399.100 Millions) availed from a bank are secured by first pari-passu specific charge on the equipment purchased under this agreement for the Company’s polyester expansion project and a first charge on the land situated at Mehsana, Gujarat. 4. Other loans and advances: - rupee term loan from others of Rs.187.600 Millions (Previous year Rs.250.100 Millions) is secured by equitable mortgage on all the immovable properties (excluding land in the state of Gujarat) by way of deposit of title deeds and hypothecation of movable assets of the Company (save and except book debts and assets exclusively hypothecated to Banks and Bodies Corporate) including movable machinery, machinery spares, tools and accessories, both present and future, ranking pari-passu with the charges created/ to be created in favour of Banks and Financial Institution for securing rupee and foreign currency term loans. - foreign currency term loan from others of Rs.724.600 Millions (Previous year Rs. 778.000 Millions) are secured by equitable mortgage on all the immovable properties (excluding land in the state of Gujarat) by way of deposit of title deeds and hypothecation of movable assets of the Company (save and except book debts and assets exclusively hypothecated to Banks and Bodies Corporate) including movable machinery, machinery spares, tools and accessories, both present and future, ranking pari-passu with the charges created/to be created in favour of Banks and Financial Institution for securing rupee and foreign currency term loans. [Loans and advances from banks and others aggregating Rs.2304.200 Millions (Previous year Rs.2781.600 Millions) are payable within one year, after considering Reschedulement.
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Short term loans and advances
- Inter corporate deposit from body corporates	0.000	50.000
Interest accrued and due on loans	0.000	0.383
Total	0.000	50.383

Banking Relations :	--
Auditors :
Name :	B S.R. and Associates Chartered Accountants
Address :	Gurgaon, Haryana, India
Enterprises over which key management personnel or their relatives have significant influence :	· Indo Rama Retail Holdings Private Limited [IRRHPL] · Indo Rama Petrochem Limited (IRPL), Thailand · T P T Petrochemicals PCL (TPT Petro), Thailand · Lohia Industries (Private) Limited (LIPL)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
185000000	Equity Shares	Rs.10/- each	Rs.1850.000 millions

Issued and Subscribed and Paid-up Capital :

No. of Shares	Type	Value	Amount
151822242	Equity Shares	Rs.10/- each	Rs.1518.200 Millions

Notes:

Of the above:

· 325,200 were issued as fully paid up otherwise than for cash, issued pursuant to a contract.

· 22,927,269 were allotted as fully paid up bonus shares by capitalisation of share premium account.

· 10,531,360 are outstanding against 1,316,420 Global Depository Receipts (GDR), each GDR comprising 8 underlying fully paid up equity shares of Rs.10 each.

· 20,000,000 were issued during the year 2007-08 as fully paid up shares to shareholders of erstwhile Indo Rama Petrochemicals Limited, pursuant to a scheme of amalgamation, for consideration other than cash.

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		1518.200	1518.222	1518.222
2] Share Warrants		203.000	0.000	0.000
3] Reserves & Surplus		4476.700	3568.771	3636.185
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6197.900	5086.993	5154.407
LOAN FUNDS
1] Secured Loans		6115.600	8660.227	8758.787
2] Unsecured Loans		0.000	50.383	1375.173
TOTAL BORROWING		6115.600	8710.610	10133.960
DEFERRED TAX LIABILITIES		2072.200	1394.699	1400.002
TOTAL		14385.700	15192.302	16688.369
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13223.400	14628.830	16625.700
Capital work-in-progress including capital advances		198.400	67.453	33.755
INVESTMENT		176.400	172.355	171.686
Foreign currency monetary item translations		0.000	7.356	21.474
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6820.100	2892.069	1691.590
	Sundry Debtors	1016.800	851.608	688.529
	Cash & Bank Balances	208.900	194.345	264.641
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2357.400	2421.165	2845.455
Total Current Assets		10403.200	6359.187	5490.235
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6241.700	3514.101	2532.455
	Current Liabilities	2775.500	2376.395	2987.592
	Provisions	598.500	152.383	134.434
Total Current Liabilities		9615.700	6042.879	5654.481
Net Current Assets		787.500	316.308	(164.246)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		14385.700	15192.302	16688.369

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	27960.600	25260.484	24444.843
		Other Income	527.100	305.265	222.138
		TOTAL (A)	28487.700	25565.749	24666.981
Less	EXPENSES
		Raw materials consumed	21548.700	19293.545	16069.685
		Goods for trading	43.100	224.231	188.310
		Operating and other expenditure	4486.000	4135.865	5108.225
		(Increase)/decrease in finished goods and work in progress	(2114.300)	(482.600)	2131.228
		Increase/(decrease) in excise duty on stocks of finished goods and waste	245.200	56.646	(178.186)
		Other Expenses	0.000	0.000	162.012
		TOTAL (B)	24208.700	23227.687	23481.274
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4279.000	2338.062	1185.707
Less	FINANCIAL EXPENSES (D)		696.600	770.395	1137.898
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3582.400	1567.667	47.809
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1499.000	1491.469	1514.748
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		2083.400	76.198	(1466.939)
Less	TAX (H)		689.300	4.873	326.583
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		1394.100	71.325	(978.344)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		863.600	780.214	1746.527
	TRANSFER FROM DEBENTURE REDEMPTION RESERVE		0.000	12.029	12.031
Less	APPROPRIATIONS
		Interim dividend	151.800	0.000	0.000
		Proposed dividend	151.800	0.000	0.000
		Tax on dividend	50.400	0.000	0.000
		Transferred to general reserve	200.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		1703.700	863.568	780.214
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	7256.600	4936.024	3475.391
		Other Earnings	154.700	30.127	30.862
	TOTAL EARNINGS		7411.300	4966.151	3506.253
	IMPORTS
		Raw Materials	17441.300	9606.467	6431.097
		Packing Material	8.800	19.842	0.000
		Stores & Spares	41.600	108.445	86.454
		Capital Goods	43.000	12.864	2.151
	TOTAL IMPORTS		17534.700	9747.618	6519.702
	Earnings/ (Loss) Per Share (Rs.)		9.18	0.47	(6.44)

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011	31.03.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	6254.400	7820.100	7686.400	7930.600
Total Expenditure	6147.900	7388.200	7494.000	7694.600
PBIDT (Excl OI)	106.500	431.900	192.400	236.000
Other Income	982.600	413.500	647.700	30.200
Operating Profit	1089.100	845.400	840.100	266.200
Interest	169.800	107.500	106.600	130.300
Exceptional Items	0.000	(628.100)	(753.000)	780.400
PBDT	919.300	109.800	(19.500)	916.300
Depreciation	374.800	384.300	392.900	391.600
Profit Before Tax	544.500	(274.500)	(412.400)	524.700
Tax	30.100	(46.100)	(91.300)	170.000
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	514.400	(228.400)	(321.100)	354.700
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	514.400	(228.400)	(321.100)	354.700

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.89	0.29	(3.97)
Net Profit Margin (PBT/Sales)	(%)	7.45	0.30	(6.00)
Return on Total Assets (PBT/Total Assets}	(%)	8.82	0.36	(6.63)
Return on Investment (ROI) (PBT/Networth)		0.34	0.01	(0.28)
Debt Equity Ratio (Total Liability/Networth)		2.53	2.90	3.06
Current Ratio (Current Asset/Current Liability)		1.08	1.05	0.97

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	No
No. of Employees	Yes
Name of Person Contacted	No
Designation of Contact person	No
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payments Terms	No
Export/ Imports Details (If applicable)	Yes
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	No

NATURE OF OPERATIONS

Subject is a manufacturer of Polyester Filament Yarn (PFY), Polyester Staple Fibre (PSF), Draw Texturised Yarn (DTY) and Chips. The Company is also engaged in power generation, which is used for captive consumption and surplus power is sold through grid. The Company’s manufacturing facilities are located at Butibori, Nagpur.

OPERATIONAL AND FINANCIAL REVIEW

During the year, the Company recorded gross sales of Rs.30001.000 millions as against Rs.26594.000 millions in previous year, representing an increase of 12.81% which is considered satisfactory considering the present market scenario. EBIDTA is up at Rs.4279 millions as against Rs.2338.000 millions last year representing an increase of 83%. Profit Before Tax stood at Rs.2083 millions against a Rs.76.000 millions for the previous year.

This year the net profit Stood at Rs.1394.000 millions as against Rs.71.000 millions last year. The turnaround in profits was possible due to improvement in margins coupled with optimal utilization of resources and reduction in interest cost.

The Company is witnessing an improved business environment marked by a combination of rising raw material prices and improvement in demand for finished goods. There has also been growing interest from relatively new segments like technical and home textiles, which in turn is contributing to the demand. Despite the multifarious business challenges of 2010, they have been able to achieve motivating results. It is encouraging to see that both domestic as well as export segments are registering increase in demand across all their products.

Polyester demand is expected to further rise on back of high prices of cotton and other alternate fibres. Cotton prices have already reached a record high, and are continuously rising because of short supply. Moreover, no further capacities are being further added going forward in near term, in existing polyester fibre capacities. The demand for polyester products is expected to rise at faster pace in coming years because of widening price gap between cotton and polyester products. All these will augur well for them in the coming years.

In financial year 2010-11, they have gone ahead with several value addition projects like replacing Furnace Oil (FO) based heat treatment media (HTM) with coal based plant, expansion in high capacity Draw Texturised Yarn

(DTY) machines which will convert more POY into value added DTY products and also setting up Stream turbine generator of 11MW capacity. All these projects shall be operational in the current financial year. On completion, these initiatives will significantly contribute to their operational efficiency and reduction in cost and thereby increasing their profits.

FUTURE PLAN OF ACTION (2011-12)

v Installation of Coal based thermic fluid heaters in place of Furnace Oil based thermic fluid heaters.

v Proposal for recycle polymer base PSF plant.

v Installation of higher number hole spinneratte in CP-4 PSF for high productivity with increase in product range.

v Renovation of PSF draw line 3.

v Expansion of DTY production capacity by installation of 14 DTY machines.

v Installation of energy efficient Screw compressor in place of existing 12 bar reciprocating compressor.

v Installation of latest technology energy efficient vapour evaporation chillers in place of existing aerated vapour absorption chillers.

v Installation of 3 bar centrifugal compressor for low pressure application in POY and DTY plant.

AWARDS AND ACCOLADES

v 1st prize in inter-industrial safety performance competition 2010, conducted by the office of Additional Director-Industrial Safety and Health Nagpur and Vidarbha Industrial Safety Committee.

v Gold Medal in Quality Circle competition organized by QCFI

v Gold Medal in Kaizen presentation organized by QCFI

MANAGEMENT DISCUSSION AND ANALYSIS

THE INDIAN ECONOMY

India is the world’s largest democracy and the 12^th largest economy of the world. The GDP growth plummeted to 6.8% in 2008-09 (due to global meltdown), recovered to 8% in 2009-10 and finally touched 8.5% in 2010-11. This is owing to India’s robust regulatory mechanism and timely stimulus by the government. The country’s GDP growth is expected to be around 8-8.5% in 2010-11, aided by increasing domestic consumption, low credit leverage, low debt exposure and a growing thrust on infrastructure creation.

KEY GROWTH DRIVERS

Rising population: India’s population is estimated to be Rs.1.21 billion in 2011 and growing at 1.3%. The country’s ‘young’ comprises over 50% people, who are below 25 years. This group is expected to drive the sale of lifestyle products.

Surging per capita income: Per capita income was Rs.46,492 in 2009-10, and it is expected to grow by 17.3% and reach Rs.54,527 in 2010-11.

Expanding middle class: The middle class comprises 22% of the total population and by 2010 this class is expected to grow to about 32% of the total population.

Urbanization: Only 28% of India’s population today lives in urban areas, and is expected to reach 40% by 2020, signalling a significant consumer, infrastructure and retail expenditure.

Global Trade Scenario

Global trade is all set to register a turnaround with an estimated growth rate of 14.5% for 2010, compared to -12.2% in 2009. The volumes increased faster than the expected recovery in global trade. Merchandise exports of the developed economies are predicted to expand by 11.5% in volume, vis-à-vis 16.5% for the rest of the world (including developing CIS countries). The strong recovery in trade indicates improved economic activity worldwide. India’s share in world trade is close to 2%, which is estimated US$ 500 billion.

TEXTILE INDUSTRY SCENARIO

Global Textile

The global textile and clothing trade is expected to witness a smart recovery from US$ 527 billion in 2009 to estimated US$ 600 billion in 2010. Although this figure is still short of from US$ 612 billion in 2008, a 14% growth

is robust, considering that Q1 2010 still was under the clouds of recession.

China is expected to claim a lion’s share of the global textile and clothing trade with estimated US$ 206 billion and India is expected to cross US$ 25 billion in 2010. The global trade in textiles and clothing will increase owing to production centres steadily shifting from Western countries to Asia and the Middle East. Simultaneously, there is an increase in the consumption in USA and European region. The trade is likely to increase from US$ 600 billion to US$800 billion by 2015 and US$1,000 by 2020.

Changing Focus

The global market for textile and apparel is expected to expand significantly on account of consumption in new markets, global expansion of modern retail business, boom of air and sea shipments, growth of textile and related production in Eastern Europe, CIS, Turkey, the Middle East, South East Asia, India, China and South America.

In 2011, emerging Asian countries, namely Bangladesh, India, Vietnam and Cambodia are believed to steal the spotlight of the global textile industry. These countries will be playing a significant role, owing to their low-cost advantage.

Indian Textile Industry

The Indian Textile industry is expected to register an overall growth of 7% in 2010.

The export performance of Indian textiles and apparel has gained momentum and year 2010-11 is expected to witness an estimated 11% growth at US$ 26 billion. However, India trails substantially behind China, both in rate of growth in exports as well as overall share in world textile exports as China has an estimated 34% share, while India lags behind with 4.3%.

Most developed countries will continue to witness a decline in exports of textiles and apparel, due to higher cost of production. This should create fresh opportunity for India to increase its share in world textile and apparel exports. India may stand to gain from China as it may yield some export opportunity due to rising demand within China and rising cost of production. According to Technopak, India has the capability and opportunity to reach US$ 80 billion exports by 2020. It can enhance the share from the current 4.3% to 8%. There is a significant potential for India to almost double the global export share.

FIBRE INDUSTRY SCENARIO

Global Fibre Industry

The global fibre demand recovered by 3.4% to an estimated 73 million tonne in 2010, compared to 70.6 million tonne in 2009. The positive signs of the world economy in 2010 can have a positive impact on fibre growth. While consumption of cotton is expected to grow marginally from 24.5 to 24.7 million tonne, Manmade fibre managed a growth of 4.7% improving demand from 45 million tonne to 47.1 million tonne. The synthetic fibre demand was higher by 4.8% from 42.3 million tonne to 44.5 million tonne.

Viscose the only cellulosic fibre demand is expected to increase by 3.5% in 2010 over 2009, with volumes at 2.55 million tonne and 2.64 million tonne in 2009 and 2010, respectively.

Acrylic is estimated to grow marginally by 1.3% due to restricted raw material supply with volumes at 1.95 million tonne and 1.98 million tonne, respectively in 2009 and 2010.

Nylon growth estimated at 5.2% from 3.58 million tonne in 2009 to 3.78 million tonne in 2010.

Polypropylene fibre estimated up by 1.5% from 4.26 million tonne to 4.33 million tonne.

Polyester remains the preferred fibre estimated to grow at 5.3%. The demand is seen at 34.4 million tonne in 2010, compared to 32.7 million tonne in 2009.

Rising Cotton Prices

The high international cotton prices due to shortage of cotton worked in favour of polyester. Cotton appreciated over 150% in 2010-11 owing to disruption of cotton crops in Pakistan due to extensive floods and higher demand and lower cotton production in China. The world cotton production is estimated at to 25 million tonne in 2010-11. The cotton demand of 24.7 million tonne is limited by very high prices.

Driving Scope for Polyester (World)

The increase in world polyester fibre capacity continues to dominate the fibre markets. The capacity estimated growth is placed at 6.7%. The capacity in 2010 is at 47 million tonne from 44.1 million tonne in 2009 and major expansions took place in China and India. In contrast, the production of polyester fibre is estimated to be 35.3 million tonne in 2010, compared to 32.7 million tonne in 2009, registering an impressive growth of 8%.

The capacity addition is estimated to continue in 2011- 12 from 47 million tonnes to 54.5 million tonnes and production reaching the levels in 2012 at 40.2 million tonnes from 35.3 million tonnes. The Polyester fibre capacity utilisation as per PCI estimated has improved from 74.2% in 2009 to 75.1% in 2010.

In terms of volume polyester filament is estimated to be around 21.4 million tonne in 2010, compared to 20.2 million tonne, a growth of 5.9% in 2009. Polyester Staple fibre (PSF) is estimated to be 13.1 million tonne in 2010, compared to 12.5 million tonne in 2009, registering a growth of 4.8%.

Indian Fibre Industry

India remained stable in terms of production and demand of all fibres. The total fibre production estimated at 8.9 million tonne. This represents an increase of 9.1% in 2010-11. The increase in production of all fibres is attributed due to increase in capacity of PFY, higher capacity utilization in Polyester staple fibre and good cotton crop. The cotton fibre production is estimated to increase at 5.6% in 2010-11 against 5.01 million tonne in 2009-10. The per capita consumption of all fibre in India stands at 7.40 kg, compared to world per capita consumption of all fibres at 10.8 kg.

Indian Polyester

The polyester fibre production was up by a robust 16.7% estimated at 3.14 million tonne in 2010-11 against 2.69 million tonne in 2009-10. The combined production of cotton and polyester fibre is 95% of the total fibre. The country’s polyester production share is around 9% of the total world production. India’s polyester per capita consumption stands at 2.50 kg in 2010, whereas world polyester per capita consumption in 2010 stands at 5.10 kg.

The all India Fibre demand in 2010-11 is estimated at 7.81 million tonne and represents a share of 10.7% of world demand. Cotton still commands 60% domestic demand, while polyester comes second with 35%. What is noteworthy is the growth over previous year in both the fibres.

While cotton consumption grew from 4.25 million tonne in 2009-10 to 4.67 million tonne, up by 9.9%, despite high volatility in prices and unprecedented rise in prices from the second half of 2010-11.

The year 2010-11 looks promising as polyester demand is expected to rise. The significant gap between the polyester and cotton prices has acted as a catalyst to foster polyester penetration in cotton predominant areas.

The polyester fibre demand and production displayed a robust performance in 2010-11. The production has risen from 2.69 million tonne in 2009-10 to estimated 3.10 million tonne, which clearly depicts 17% growth. The demand was equally impressive with a growth of 16%, volume up estimated 2.70 million tonne in 2010-11 from 2.33 million tonne in 2009-10. The capacity addition from 3.75 million tonne in 2009-10 to estimated 4.06 million tonne in 2010-11 is fully on account of capacity build-up in polyester filament yarn segment.

The outlook on polyester is positive on account of stable demand of all polyester products, competitive prices visà-vis other fibres. Polyester increasing usage non apparel segment, technical textiles and nonwoven applications will further drive demands.

India’s expanding middle class, their growing disposable income and wider applications will sustain stable growth of polyester.

The demand is likely to be in the range of 10-12% CAGR. The operational efficiency is estimated to improve to 90% by 2013-14.

Polyester Filament Yarn (PFY)

The total capacity of PFY in 2010-11 is 2.91 million tonne. The country’s PFY production is estimated at 2.15 million tonne in 2010-11 against 1.81 million tonne in 2009-10, registering an impressive 19% growth.

PFY production share is 68% of total India’s polyester fibre production. The domestic demand is seen at 1.92 million tonne in 2011 against 1.66 million tonne in 2010, thereby showing a robust growth of 15%.

Exports of PFY is estimated at 0.20 million tonne, registering a growth of 24% over 2009-10. The demand based capacity utilization of PFY is 64% in 2010-11. The low capacity utilization is on account of huge expansions carried out in 2011 and will increase in 2012.

PFY capacity expansions are in various stages of progress and India’s capacity is estimated to be 4 million tonne by 2013-14, an increase of estimated 39%. This capacity addition is likely to translate into a CAGR demand of 11-13% for the period 2011-2014. The PFY will be a major contributor in wearable category, dress material, automotive segment and home textiles.

Polyester Staple Fibre (PSF)

The capacity of PSF in 2010-11 is 1.15 million tonne.

India’s PSF production is estimated at 0.99 million tonne in 2011, as against 0.88 million tonne in 2010. This demonstrates an increase of 12.7% in production. PSF contributes 32% of the India’s polyester fibre production.

Domestic demand is 0.78 million tonne (grew 16.5% in 2011) on account of short supply of major competing fibre and competetive price.

Export (estimated at 0.185 million tone) is down by 5.4% as domestic demand supply matched. The demand based capacity utilization is seen at 85% in 2011 and is likely to further increase in 2012.

No new capacity has been announced for expansion in 2011 and 2012. PSF demand is stable and is estimated to grow at a CAGR of 9-11% for 2011-14. The demand is expected to come from non-woven applications, substitution of cotton fibre by PSF and men’s wear.

About Subject

Subject (Indo Rama) is a polyester manufacturing company operating its business through two segments, namely polyester division and power division.

The Company offers a wide range of polyester products, which include Polyester Staple Fibre (PSF), Partially Oriented Yarn (POY), Draw Texturised Yarn (DTY), Fully Drawn Yarn (FDY) and Polyester Chips. Equipped with a state-of-the-art integrated manufacturing complex at Butibori near Nagpur in Maharashtra, Indo Rama also has several technical collaborations with various technology leaders in Japan, Germany and the USA. A customer focused organization, Indo Rama stands for high quality standards and innovative business practices.

Marketing Strategy

In 2010-11, the Company consolidated sales in its entire products category. The thrust on developing new customers with aggressive marketing intelligence paid rich dividends. A renewed focus on developing sales of PSF in non-woven segment yielded rich dividends.

Moreover, Indo Rama is looking to enhance the market share through right placement of products in domestic markets and also looking at diversifying its product base. The Company also strengthened its customer base in export geographies through competitive pricing and quality offerings.

Raw Material Procurement

The scenario in polyester has changed drastically this year, due to the shortage of cotton. The rising prices of cotton and shortage resulted in a swift demand for polyester products like PSF, POY, film and texturised yarn. The price scenario for these products has touched the highest levels. This triggered an unexpected demand of Purified Terephthalic Acid (PTA) and Monoethylene Glycol (MEG) - the key raw materials to make polyester resulting into price increase. From the present situation it seems that PTA and MEG demands will remain stiff due to increase in polyester capacities.

Purified Terephthalic Acid (PTA)

In the beginning of 2010-11, PTA was expected to be easily available and prices were declining but after the floods hit China and Pakistan there has been a shortage of cotton crop. This impacted the prices, which had been

going down started moving up from July onwards and went up to unexpected heights. Only one new PTA plant came up in China during the end of the year and all other commissioning of plants were delayed, which further fuelled the demand for PTA.

In India imports have gone up from 30,000 MT per month to 70,000 MT per month due to frequent plant outages of local PTA producers.

Analyzing the current situation the demand and supply position, PTA is likely to remain tight due to few new PTA

capacities additions and higher utilization of polyester capacities.

Monoethylene Glycol (MEG)

MEG witnessed an increasing trend from June/July due to unexpected demand in polyester. Further MEG expected growth rate was lower than demand growth rate resulting into higher operating rates of MEG plants globally. The trend is expected to continue due to limited MEG Capacities worldwide until new capacities come up by 2013-14. Due to expected polyester capacity utilization the position of MEG in general is likely to remain tight in the next year as no new capacity is likely to come in 2011-12.

POWER BUSINESS

11 MW STG Project was initiated to generate additional power to reduce captive power cost in 2010-11. This project was initiated to produce additional 11 MW coal based (thermal) power from the surplus steam of CPP boilers as a substitute for costly DG Power. After project commissioning, the overall captive power cost of polyester production shall reduce. Upon 11 MW STG project commissioning, the installed capacity of power generation in the complex shall be 93.5 MW. The capacity comprises 52.5 MW DG sets, based on furnace oil and 41 MW STG facilities based on coal.

Indo Rama has availed of maximum power for captive consumption through coal based power plants by restricting DG operations to the lowest and imported power from state grid as a cheaper option, whenever necessary.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars	31.03.2011 (Rs. in millions)
Excise / customs / service tax matters in dispute/ under appeal	668.400
Income tax matters in dispute/ under appeal	64.700
Sales tax matters in dispute/ under appeal	226.800
Claims by ex-employees, vendors, customers and civil cases	17.200

FIXED ASSETS:

· Land (Freehold and Leasehold)

· Roads and Buildings

· Plant and Machinery

· Furniture and Office Equipments

· Vehicles

· Software

WEBSITE DETAILS:

BUSINESS DESCRIPTION

Subject is an India-based polyester manufacturing company. The Company is engaged in the manufacture of polyester staple fiber (PSF), partially oriented yarn (POY), draw texturised yarn (DTY), fully drawn yarn (FDY) and polyester chips. The Company operates in two segments: division and power division. The Company's manufacturing facilities are located at Butibori, Nagpur. During the fiscal year ended March 31, 2011 (fiscal 2011), the Company produced 184,081 tons per annum of PSF; 169,516 tons per annum of PFY; 45,527 tons per annum of DTY; 10,745 tons per annum of polyester chips, and 29.8 mega watt per hour of electrical power. During fiscal 2011, Indo Rama had an installed capacity to produce 263,550 tons per annum of PSFY; 259,000 tons per annum of PFY; 63,200 tons per annum of DTY; 87,500 tons per annum of polyester chips, and 82.5 mega watt per hour of electrical power. For the nine months ended 31 December 2010, subject’s revenue increased 3% to RS19.69B. Net income totaled RS387.3M, up from RS21M. Revenues reflect an increase in income from Polyester segment. Net income also reflects lower employees costs, a decrease in other expenditure, a decrease in depreciation and higher operating margins. Subject is an India based company.

BOARD OF DIRECTORS

A. K. Ladha

Non-Executive Independent Director

Mr. A. K. Ladha serves as Non-Executive Independent Director of subject. He holds B.Com. His other Directorship include: Birlasoft (U.K.) Limited, Rajasthan Inds. Limited, Birlasoft (India) Limited, Birla soft Enterprises Limited, WA Finance Limited, Gwalior Finance Corporation, Hindustan Discounting Company Limited, Amer Investment (Delhi) Limited

Om Prakash Vaish

Non-Executive Independent Director

Mr. Om Prakash Vaish, Senior Advocate, B.Com. (Hons) M.A. Eco., LLM, serves as Non-Executive Independent Director of subject. He is the founder of Law Firm “Vaish Associates” at New Delhi. He is the past President of PHDCCI and currently member of the Management Committee of FICCI and ASSOCAM. He is Government nominee on the Council of the Institute of Chartered Accountants of India. He has been associated with various Committees and Advisory Boards of Institutions like American India Foundation and Western International University, USA. Mr. Vaish was honoured by the Soka University, Japan describing him as the ‘Lawyer of Conscience’. His other directorships include: Godfrey Philips India Limited, The India Thermit Corporation Limited, PNB Finance and Industries Limited, International Travel House Limited Other organizations: Federation of Indian Chamber of Commerce and Industry, International Chamber of Commerce (ICC-India), International Management Institute.

PRESS RELEASES:  

Indo Rama Synthetics announces FY 12 Results

Net Sales up at Rs 29432.700 Millions Vs 27960.600 Millions

Net Profit at Rs 319.600 Millions Vs Rs 1394.100 Millions

Record exports of Rs 9089.400 Millions

Editor’s Synopsis

FY12 Financial Highlights (all comparison to FY11)

· Net Sales at Rs 29432.700 Millions as compared to Rs 27960.600 Millions

· EBIDTA at Rs 3190.600 Millions as compared to Rs 4196.200 Millions

· Net Profit at Rs 319.600 Millions from Rs 1394.100 Millions

Q4 Financial Highlights (all comparison to Q4FY11)

· Net sales at Rs 7869.800 Millions as compared to Rs 8546.100 Millions

· EBIDTA at Rs 266.200 Millions as compared to Rs 1957.600 Millions

· Net Profit at Rs 354.700 Millions from Rs 1006.800 Millions

Gurgaon, April 25, 2012: Indo Rama Synthetics (India) Limited, India’s largest dedicated polyester manufacturer, today announced its audited annual and Q4 results for the financial year ended March 31, 2012.

For the financial year ended March 31, 2012, the net sales stood at Rs 29432.700 Millions, up by 5.26% as against Rs 27960.600 Millions in the previous year. Company reported an all time high exports of Rs 9089.400 Millions during the year. EBIDTA (without exceptional items) for the year is Rs 3190.600 Millions as compared to Rs 4196.200 Millions in the last year. The PAT for the year is Rs 319.600 Millions from Rs 1394.100 Millions in the corresponding period. The PAT was impacted primarily due to a weak rupee. Overall this was a challenging year for the entire industry with depressed demand for polyester products compounded by a weak rupee which adversely impacted raw material procurement price. Despite the macro‐economic challenges, the company registered growth in sales and continued to focus on internal efficiencies and cost optimization projects to counter the margin pressures during the year.

The Board has recommended a dividend of 10% to its shareholders.

Significant announcements during FY1112:

As a strategic move for the company’s growth, Indo Rama Synthetics (India) has signed a MoU with the Thailand based Indorama Ventures to set up a world‐class, state‐of‐the‐art integrated facility in India to produce PTA (Purified Terephthalic Acid), PET (Polyethylene Terephthalate) and PSF (Polyester Staple Fiber). This project with an overall capacity of 1.2 million tonnes per annum, entails an investment of nearly Rs.40000.000 Millions. On commissioning, the plant will help Indo Rama’s backward integration, serve Indian customers and expand the Group’s market globally.

Commenting on the Results, Mr. O P Lohia, Chairman and Managing Director, Indo Rama Synthetics (India) Limited said, "We have successfully managed a highly challenging year and delivered a modest growth. We believe that the exceptionally long down turn for the industry is set to reverse now. Our achievements in enhancing internal efficiencies during this year has made us more competitive and poised to exploit market opportunities as the business improves in the coming quarters.

Our expansion plans for a new PTA, PET and PSF facility demonstrates our conviction and belief in the long term prospects of the industry”.

About Indo Rama Synthetics (India) Limited

Indo Rama Synthetics (India) Limited is India’s largest dedicated polyester manufacturer with an Integrated Manufacturing Complex at Butibori near Nagpur in Maharashtra, with capacity of 6,10,050 tonnes per annum of Polyester Staple Fibre, Filament Yarn, Draw Texturized Yarn, Fully Drawn Yarn and Textile grade Chips.

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.54.88
UK Pound	1	Rs.86.84
Euro	1	Rs.70.21

INFORMATION DETAILS

Report Prepared by :

NIT

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	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	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	-

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