MIRA INFORM REPORT

Report Date :

02.11.2006

IDENTIFICATION DETAILS

Name :	RAYMOND APPAREL LIMITED
Formerly Known As :	J. K. Bombay Limited
Registered Office :	New Hind House, N M Marg, Ballard Estate, Mumbai – 400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	21.07.1948
Com. Reg. No.:	11-6460
CIN No.: [Company Identification No.]	U51109MH1948PLC006460
TAN No.: [Tax Deduction & Collection Account No.]	MUMR14675D
PAN No.: [Permanent Account No.]	AAACJ2732K
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturers and Marketers of Readymade Garments.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 3750000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company of Raymond Limited. Available information indicates high financial responsibility of the company and its’ management. Financial position of the company is good. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	New Hind House, N M Marg, Ballard Estate, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22686000
Fax No.:	91-22-22620052
Factory 1 :	J. K. Buildings, Narottam Morarjee Marg, Ballard Estate, Mumbai – 400 038, Maharashtra, India
Tel. No.:	91-22-22618321
Factory 2 :	Jekegram, Pokhran Road, Thane – 400 606, Maharashtra
Tel. No.:	91-22-25341664/25341669/25341671/25341674/25344181

DIRECTORS

Name :	Mr. Vijaypat K. Singhania
Designation :	Chairman and Managing Director
Address :	J. K. House 59 A, Bhulabhai Desai Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	04.10.1938
Date of Appointment :	25.03.1980
Name :	Mr. Hari Gautamh Singhania
Designation :	Director
Address :	J. K. House 59 A, Bhulabhai Desai Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	09.09.1965
Date of Appointment :	30.03.1993
Name :	Mrs. Ashadevi V. Singhania
Designation :	Director
Address :	J. K. House 59 A, Bhulabhai Desai Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	29.05.1941
Date of Appointment :	30.03.1993
Name :	Mr. Balkrishna S. Kedia
Designation :	Director
Address :	Flat No. 111/121, Sarnath 59 B, Bhulabhai Desai Road, Mumbai-400026, Maharashtra
Date of Birth/Age :	20.09.1928
Date of Appointment :	30.05.1969
Name :	Mr. Akshay A. Singhania
Designation :	Director
Address :	J. K. House 59 A, Bhulabhai Desai Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	03.03.1969
Date of Appointment :	26.03.2003
Name :	Mr. Pradeepkumar Bhandari
Designation :	Director
Address :	Jekegram Polharan Road No. 1, Thane – 400606, Maharashtra, India
Date of Birth/Age :	15.08.1957
Date of Appointment :	25.09.1997
Name :	Mr. Anant A. Singhania
Designation :	Director
Address :	J. K. House 59 A, Bhulabhai Desai Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	10.10.1973
Date of Appointment :	26.03.2003
Name :	Mr. Pratap R. Jain
Designation :	Director
Address :	Flat No. 44, Darya Mahal B, Nepean Sea Road, Mumbai –400006, Maharashtra, India
Date of Birth/Age :	06.08.1944
Date of Appointment :	20.09.1993

KEY EXECUTIVE

Name :	Mr. Shreyas Joshi
Designation :	President
Date of Birth/Age :	47 Years
Qualification :	B. Text, M.S. University – Board, M. tech IIT Delhi, M B A, B K School of Management
Experience :	28 Years
Date of Appointment :	18.01.2003
Name :	Mr. Vineeth Nair
Designation :	Director Kidswear
Date of Birth/Age :	39 Years
Qualification :	B. A. [Economics and Mathematics], Master of Management Studies
Experience :	18 Years
Date of Appointment :	01.04.2005
Name :	Mr. Naresh Mehta
Designation :	Director – H R
Date of Birth/Age :	40 Years
Qualification :	B. Com. Master of Management Studies
Experience :	19 Years
Date of Appointment :	14.11.2005
Name :	Mr. Bharat Manseta
Designation :	Director – Design
Date of Birth/Age :	49 Years
Qualification :	B. Text
Experience :	25 Years
Date of Appointment :	09.01.2005

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Raymond Limited	1999520
Raymond Limited J / W H. Sundar	10
Raymond Limited J / W R. Narayanan	10
Raymond Limited J / W Kaizad Hazari	10
Raymond Limited J / W Chetan Mody	10
Raymond Limited J / W B K Kedia	10
Raymond Limited J / W V M Bhartia	220

BUSINESS DETAILS

Line of Business :

Manufacturers and Marketers of Readymade Garments.

Products :

Item Code No. (ITC Code)	620343.00
Product Description	Men’s Trousers – of Synthetic Fibres
Item Code No. (ITC Code)	620333.02
Product Description	Men’s Jackets & Blazers – of Synthetic Fibres – of other than Hand Printed
Item Code No. (ITC Code)	620312.00
Product Description	Men’s Suits – of Synthetic Fibres

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Readymade Garments	Nos.	0.388	0.140

GENERAL INFORMATION

Suppliers :

v Janton

v Bluestar Advertisers

v Monarch Jewellery India Private Limited

v Abacus Textiles Private Limited

No. of Employees :

1800

Bankers :

Bank of India

M. G. Road, Mumbai – 400 001, Maharashtra

Bank of Maharashtra

Navpada Branch, Thane – 400602

Bank of Rajasthan Limited

Fort Branch

Mumbai

UTI Bank Limited

Thane Branch, LBS Road

Thane

HDFC Bank Limited

Facilities :

Secured Loans	31.03.2006
Term Loan from Bank (Secured by hypothecation of specified machineries purchased under Technology up gradation Fund Scheme)	11.935
Working Capital Advances from Banks (Secured by hypothecation of stocks, book debts and other tangible moveable assets)	176.364
Interest Accrued thereon Working Capital Advance Term Loan	0.502 0.076

Banking Relations :	Satisfactory
Auditors :	V. B. Dalal & Company Chartered Accountants Office 307, 3rde Floor, S. J. Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Associates :	v Pashmina Holdings Limited v Everblue Apparel Limited v Jaykayorg AG, Switzerland v J. K. (England) Limited, U.K. v Regency Texteis Portuguesa Limited v Textile Regency, Socied Limited v Hindustan Files Limited v Silver Spark Apparel Limited v Plugin Sales Limited v Celebrations Apparel Limited v Ring Plus Aqua Limited v R & A Logistics Inc. v Scissors Engineering Products Limited v J. K. Talabot Limited v J. K. Investo Trade (India) Limited v J. K. Helene Curtis Limited v P. T. Jaykay Files Indonesia v J. K. Investors (Bombay) Limited v J. K. Ansell Limited v Radha Krishna Films Limited
Subsidiaries :	v Colorplus Fashions Limited
Holding Company :	v Raymond Limited CIN No. : L17117MH1925PLC001208
Joint Venture :	v Raymond Zambaiti Private Limited v Raymond Fedora Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
50,00,000	Equity Shares	Rs.10/- each	Rs. 50.000 millions
34,30,000	6 % Preference Shares	Rs. 100/- each	Rs. 343.000 Millions
	Total		Rs. 393.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20,00,000	Equity Shares	Rs.10/- each	Rs. 20.000 Millions
34,30,000	6 % Preference Shares	Rs. 100/- each	Rs. 343.000 Millions
	Total		Rs. 363.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		363.000	20.000	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		628.876	492.291	412.800
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		991.876	512.291	432.800
LOAN FUNDS
1] Secured Loans		188.877	90.347	129.900
2] Unsecured Loans		0.000	0.000	70.000
TOTAL BORROWING		188.877	90.347	199.900
TOTAL		1180.753	602.638	632.700
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		167.125	107.085	105.700
Capital work-in-progress		47.673	0.000	0.000
INVESTMENT		348.432	5.438	5.700
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	606.428	453.976	484.400
	Sundry Debtors	226.182	269.228	257.600
	Cash & Bank Balances	7.677	6.840	11.300
	Loans & Advances	74.637	46.848	47.600
Total Current Assets		914.924	776.892	800.900
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	273.862	278.298	255.800
	Provisions	23.539	8.479	26.500
Total Current Liabilities		297.401	286.777	282.300
Net Current Assets		617.523	490.115	518.600
MISCELLANEOUS EXPENSES		0.000	0.000	2.700
TOTAL		1180.753	602.638	632.700

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	2005.427	1714.712	1686.000
Profit/(Loss) Before Tax	230.864	123.586	36.000
Provision for Taxation	82.284	44.135	13.300
Profit/(Loss) After Tax	148.580	79.451	23.300
Import Value	88.668	48.154	NA
Total Expenditure	1774.563	1591.126	1611.100

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	7.41	4.63	1.38
Net Profit Margin (PBT/Sales)	(%)	11.51	7.21	2.14
Return on Total Assets (PBT/Total Assets}	(%)	21.34	13.98	3.97
Return on Investment (ROI) (PBT/Networth)		0.23	0.24	0.08
Debt Equity Ratio (Total Liability/Networth)		0.49	0.74	1.11
Current Ratio (Current Asset/Current Liability)		3.08	2.71	2.83

LOCAL AGENCY FURTHER INFORMATION

Fixed assets

v Buildings

v Plant & machinery

v Furniture & fittings

v Office equipment

v Computers

v Motor

v Vehicles

v SCM Computer Software.

History

Subject was incorporated on 12^th November, 1970 at Mumbai in Maharashtra under the name and style of J. K. (Bombay) Limited having Company Registration Number 6460. Subsequently, the name of the company was changed to present

Financial Results

The gross turnover of the company was higher by 7.97 % at Rs. 1903.900 Millions. Profit after tax was at Rs. 148.600 millions.

The directors recommend a dividend @ 6 % on preference share payable prorata form the date of allotment i.e. 26.09.2005 absorbing a sum of Rs. 1.50 millions. With a view to conserve resources for the company’s growth plans, the directors do not recommend any dividend on the equity shares for the year under review.

Performance

During the year under review, the company’s focus on innovation differentiation and achieving operational efficiencies has successfully resulted in improved profitability.

The company opened its own Brand Stores at various places in Metros and Mini Metros at High Streets as well as in Shopping Malls. In the coming years, the company plans to open more Brand stores throughout the country as a part of its strategy to enhance image of its brands and the retail experience. The company continued focus on design and product innovation is expected to help the company to compete with local and international players in the highly competitive domestic market.

The positive outlook of the market toward ready-to-ware due to changes in lifestyle has created more opportunities for the apparel industry. With a view to cater to the rapidly growing branded kids wear market. The company plans to launch ‘ZAPP’ a premium range of kids wear in the current year.

Award

The ‘Park Avenue’ Brand of the company was adjudged the ‘Most Admired Brand’ of the year in the caregory –‘Formal Wear’ at the Lycra images Fashion Awards 2006 for the second successive year.

As the Company’s business activity falls within a single primary business segment viz, ‘Ready-made garments and accessories’ the disclosure requirement of Accounting standard - 17 ‘Segment reporting’ issued by the Institute of Chartered Accountants of India is not applicable.

The company has operating lease agreements primarily for showrooms. The lease terms for the showrooms are for about 3-5 years. The rental expenses for the operating lease for the year ended 31.03.2006 was Rs. 38.076 Millions.

Share Capital

During the year under review the company

Sun-dividend the equity shares having face value of Rs. 100/- per share into equity shares having face value of Rs. 10/- per share

Increased the authorised share capital from Rs. 50 millions dividend into 5000000 equity Shares of Rs. 10/- each to Rs. 393 millions dividend into 50000000 equity shares of Rs. 10/- each aggregating Rs. 50 millions and 3430000 preference shares of Rs. 100/- each aggregating Rs. 343 millions.

To augment the long term resources the company issued and allotted 343000 – 6 % cumulative redeemable preference share of Rs. 100/- each aggregating Rs. 343 millions to Raymond Limited, the Holding Company.

Subsidiary

During the year under review the company acquired the entire holding of 74100 equity shares of Rs. 100/- each held by Raymond Limited the Holding Company in the share capital of Colorplus Fashion Limited became a subsidiary of the company.

The gross of Colorplus Fashions Limited was higher by 12.17 % at Rs. 1018.8 millions Profit before Tax and exceptional items was higher by 20.52 % at Rs. 255.5 millions Net Profit after provision for prior year adjustments income and wealth taxes was higher by 47.73 % at Rs. 169 millions

Colorplus in its endeavour to maintain its prime position in the premium casual wear, is constantly innovating in terms of style as well as through improved fabric construction in order to set higher benchmark levels. Colorplus is committed to reducing response time to rapidly changing the emerging business scenarios in India and overseas.

Contingent Liabilities not provided for :	Amount in Millions
Disputed Sales Tax matters
Pending with Appellate Tribunal	4.926
Pending with Dy. Commissioner [Appeal]	0.580
Disputed demand in respect of Excise [Pending with Appellate Tribunal]	2.810
Disputed demand in respect of Income Tax [Pending with Appellate Tribunal]	--

profile

The company has announced a major expansion programme for its apparel and denim businesses totalling over Rs. 2000 millions. The expansion will include setting up two new manufacturing units for apparels and denimwear in Bangalore and a capacity expansion of its existing denim manufacturing facility at Yavatmal Maharashtra.

The company is setting up a new suit and formal trouser manufacturing facility in Bangalore with an annual capacity of 0.500 million trousers in two phases at a cost of Rs. 400 millions. The phase I of the project will be operational by March and the phase II by September 2005.

The company is also setting up a denimwear manufacturing facility in Bangalore with an annual capacity of 300 millions garments at a cost of Rs. 440 millions, which will be operational by December 2005.

The company will expand its denim manufacturing capacity at Yavatmal in Maharashtra from the existing 20 million meters to 30 million meters annually at a cost of Rs. 1270 millions, which will go on stream by April, 2005.

Gautam Singhania, Chairman and Managing Director, Raymond said, “ Its investments in capacity expansion and new garments units are in line with our vision to become a global player in its areas of core competence. This is yet another step towards consolidating Raymond’s position as a globally recognized player in textile and apparel segments.”

Nabankur Gupta, Group President, Raymond said “ The company believe that its investments in the areas of denim and apparel will be the major drivers for the group in the future.”

It is in trade terms with :-

> Akshay Packaging, Mumbai, Maharashtra, India

> Indo Flexi, Mumbai, Maharashtra, India

> Black Label Fashions, Mumbai, Maharashtra, India

> Studio Art Process, Mumbai, Maharashtra, India

> United Packaging Industries, Mumbai, Maharashtra, India

> Calmon Abacus, Mumbai, Maharashtra, India

> Janton, Mumbai, Maharashtra, India

> Monarch Jewellery, Mumbai, Maharashtra, India

Name of the company

RAYMOND APPAREL LIMITED

Presented By

Bank of Maharashtra

Navpada Branch, Thane - 400602

1) Date and description of instrument creating the change

Agreement for Term Loan and Deed of Hypothecations of goods both dated 10.04.2002

Both the documents constitute as a single charge

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 20.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Stock of raw materials, finished and semi finished goods

Ready made garments and accessories

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of commission as per Bank’s rules 0.25 % over the PLR interest minimum 12.25 % p.a.

5) Name and Address and description of the person entitled to the charge.

Bank of Maharashtra

Navpada Branch,

Gokhale Road,

Thane - 400602

6) Date and brief description of instrument modifying the charge

NA

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

NA

Name of the company

RAYMOND APPAREL LIMITED

Presented By

Bank of Maharashtra

Navpada Branch, Thane - 400602

1) Date and description of instrument creating the change

29.07.200 Joint deed of hypothecation

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 170.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

The whole of the current assets of the borrower stocks of raw materials, stocks in process, semi finished and finished goods sores, spares not relating to plant and machinery bills, receivables and book dents and all other movables both which are now lying or stored in or about or about or shall hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be held in State of Maharashtra or wherever else the same may be borrower or in the course of transit or on high seas or on high seas or an order or delivery howsoever and whosesoever in the possession of the borrower and either by way of substitution or addition and all the fixed assets of the company such as plant and machinery, furniture and fixture office equipment computers, automobiles vehicles and other fixed asset of the company premises any where in India or overseas or wherever in the possession of the borrower or otherwise

4) Gist of the terms and conditions and extent and operation of the charge.

Details of credit facilities

Facility	Bank of Maharashtra	BOR Limited
Cash credit	20.4	13.6
Demand Loan	81.6	54.4

Interest commission as per RBI / HO Rules

Security to cover principal amount together with interest cost, charges expenses etc.

5) Name and Address and description of the person entitled to the charge.

Bank of Maharashtra

Navpada Branch,

Gokhale Road,

Thane – 400602

Bank of Rajasthan Limited

Fort Branch

Mumbai

UTI Bank Limited

Thane Branch, LBS Road

Thane

6) Date and brief description of instrument modifying the charge

06.05.2005

Joint deed of hypothecation

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Original charge was created n 29.07.2000 for a sum of Rs. 170 millions in aggregate

First modification enhanced the charge form Rs. 170.000 millions to Rs. 242 millions on 29.10.2001 including the charge of the Bank Consortium aggregating Rs. 222 millions

Second Modification enhanced the charge from Rs. 242 millions to Rs. 285.4 millions on 28.02.2002 being registered with ROC on 21.03.2002 as document no 251

By present modification

By a joint deed of hypothecation the borrower hypothecates by way of first charge all such assets as are more particularly described in para 2 of the Joint Deed of Hypothecation dated 06.05.2005 to secured aggregate working capital facilities of Rs. 360 millions in favour of the Bank consortium as per following :

Details of credit facilities

Facility	Bank of Maharashtra	UTI Bank Limited	HDFC Bank Limited
Cash credit Hyp of Stocks and Goods	46.8	72.0	36.0
Working capital Demand loan Hyp of Book debts	187.2	18.0	0.00

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 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.44.65
UK Pound	1	Rs.85.03
Euro	1	Rs.56.98

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		57

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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