MIRA INFORM REPORT

Report Date :

27.08.2007

IDENTIFICATION DETAILS

Name :	P I INDUSTRIES LIMITED
Registered Office :	Post Box No. 20, Udaisagar Road, Udaipur – 313001, Rajasthan
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	31.12.1946
Com. Reg. No.:	17-469
CIN No.: [Company Identification No.]	L24211RJ1946PLC000469
TAN No.: (Tax Deduction & Collection Account No.)	JDHP01697D
Legal Form :	Subject is a public limited liability company. The company's shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing and Marketing of Pesticides, Industrial Chemicals and Polymers, etc.

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 2250000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company whose profit margin is under severe pressure. General Financial position is satisfactory. Payments are reported as correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Post Box No. 20, Udaisagar Road, Udaipur – 313001, Rajasthan, India
Tel. No.:	91-294-2492451-55
Fax No.:	91-294-2491946
E-Mail :	piind@piind.com
Website :	http://www.piind.com
Corporate Office :	4^th Floor, Tower – A, Millennium Plaza, Sector – 27, Gurgaon – 122 022, Haryana, India
Tel. No.:	91-124-5159000
Fax. No.:	91-124-5081247
Plants :	§ Post Box No. 20, Udaisagar Road, Udaipur – 313001, Rajasthan, India Tel. 91-294-2492451-55 Fax. 91-294-2491946 Telex. 0335-202-COMP IN § Plot No. 237, GIDC, Panoli, Ankleshwar, Gujarat, India Tel. No. 91-2646-272105/399 Fax. No.: 91-2646-272313
Regional Offices :	Located at :- Y Agra, Uttar Pradesh Y Kolkata, West Bengal Y Jalandhar, Punjab Y Vijayawada, Andhra Pradesh Y Coimbatore Y Ahmedabad, Gujarat
Branches :	Located at:- Y Cuttack, Orissa Y Patna, Bihar Y New Delhi

DIRECTORS

Name :	Mr. Salil Singhal
Designation :	Chairman and Managing Director
Name :	Mr. Mayank Singhal
Designation :	Joint Managing Director
Name :	Mr. G R Divan
Designation :	Director
Name :	Mr. Arvind Singhal
Designation :	Director
Name :	Mr. P N Shah
Designation :	Director
Name :	Mr. A K Mukerjee
Designation :	Director
Name :	Mr. S P Vishnoi
Designation :	Director
Name :	Mr. Anurag Surana
Designation :	Whole Time Director
Name :	Mr. Y A Mankad
Designation :	Nominee Director of IDBI Limited

KEY EXECUTIVES

Name :	Mr. G G Agarwal (Doctor)
Designation :	Director – Finance
Name :	Mr Sanjay Kumar Tiwari
Designation :	Company Secretary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Overseas Corporate Bodies	457400	12.91
Promoters	2657579	74.99
Others	428775	12.10
TOTAL	3543754	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Pesticides, Industrial Chemicals and Polymers, etc.

Products :

Products Description	ITC Code
Insecticides	380810.00
Meterin and Allied Products	902830.00
Polypropylene	390210.00

Exports to :

South Asia, Europe,Japan and Russia.

Imports from :

USA, China, Japan, Europe and Far East

Terms :

Purchasing :

L/C, D/A and D/P (90 days)

GENERAL INFORMATION

No. of Employees :

Around 800

Bankers :

Ø State Bank of India, Udaipur, Rajasthan, India

Ø State Bank of India, Commercial Branch, 6^th Floor, Palm Court, Near MDI, Gurgaon – 122002, Haryana , India

Ø State Bank of Bikaner & Jaipur, Udaipur, Rajasthan, India

Ø ICICI Bank Limited, 9 A, Phelphs Building, Connaught Place, New Delhi – 110001

Ø Canara Bank, New Delhi, India

Ø Canara Bank, Udaipur, Rajasthan, India

Ø Bank of Rajasthan Limited, Udaipur, Rajasthan, India

Ø UTI Bank Limited, 151-152, Chetak Marg, Udaipur – 313001

Facilities :

Secured Loan

(Rs. in millions)

	2005	2004
Term Loans from Financial Institutions/ Banks	395.477	258.883
Working Capital Borrowings	259.082	108.563

Note:

i) Equipment Loans, Vehicle Loans and Equipments purchased under Deferred Payment Guarantees arc; secured by exclusive charge by way of hypothecation of the specific assets purchased under the scheme.

ii) Other term loans are secured on pari pasu basis by a joint equitable mortgage through deposit of Title Deeds on all in movable properties and first charge ranking pari pasu by way of hypothecation of all movable properties present and future, subject to prior charge in favour of the Company's bankers over the book debts and stocks.

iii) Wo-king Capital Loans are secured on pari pasu basis by hypothecation of stocks of raw materials, finished ano semi-finished goods, consumable stores and book debts and are additionally secured by a second charge on all the movable and immovable properties of the Company. All the above loans have been guaranteed by two directors of the Company.

Unsecured Loans

(Rs. in millions)

	2005	2004
Loans Interest free Sales Tax Loan	12.527	7.716
Inter Corporate Deposits --From Wholly Owned Subsidiary of the Company --From Others	3.300 13.926	3.137 10.101
Deposits Directors Shareholders Dealers Security Deposits Others	13.922 16.352 34.271 33.883	16.359 15.678 29.741 31.758
	128.181	114.490

Banking Relations :	Satisfactory
Auditors :	Ø B. D. Gargieya & Company Chartered Accountants, Bank of Raj. Building, M I Road, Jaipur – 110065 Ø S. S. Kothari & Company Chartered Accountants 146 – 149, Tribhuvan Complex, Ishwar Nagar, Mathura Road, New Delhi – 110065 Cost Auditors Ø K. G. Goyal & Company Chartered Accountants, 8, Chitra Gupta Nagar, Jyoti Nagar Railway Crossing, Jaipur – 302 005, Rajasthan, India
Associates :	Ø Wolkem Limited It exports Wolkastonite to USA, UK, Germany, Spain, Italy, Japan and South Korea. Ø Secure Meters Limited Manufacturer of highly sophisticated and accurate solid state electronic energy meters and energy management systems Ø Samaya Investment and Trading Private Limited Ø Parteek Finance and Investment Company Limited Ø Lucrative Leasing Finance and Investment Company Limited Ø Binarvi Holding Private Limited Ø Nansjay Investment Private Limited Ø Polymeters Response International Limited Ø Lipi Data Systems Manufacturers of large size heavy-duty line printers for computers in technical collaboration with a USA company
Subsidiaries :	Pill Finance & Investment Limited Board of Director – Mr. A K Mukerjee Mr. Salil Singhal Mr. Anurag Surana Mr. R Srivivasan Banker ICICI Bank Limited IDBI Limited Auditors Kishan M Mehta & Company Chartered Accountant Registered Office – 209, Himalaya Arcade, Near Bharat Petrol Pump, Vastrapur, Ahmedabad – 380015 PI Life Science Research Limited Board of Director Dr. S P Vishnoi Mr. Anurag Surana Mr. R Srinivasan Bankers: UTI Bank Limited Auditors K S Mehta & Company Chartered Accountant Registered Office: 603 – C, Philips CGHS Limited, Plot No. 3, Sector – 23, Dwarka, New Delhi - 110075

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
70,00,000	Equity Shares	Rs. 10/-	Rs. 70.000 millions
3,00,000	Preference Shares	Rs. 100/-	Rs. 30.000 millions
	Total		Rs. 100.000 millions

Issued Capital :

No. of Shares	Type	Value	Amount
35, 61, 411.5	Equity Shares	Rs. 10/-	Rs. 35.614 millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
35, 43,754	Equity Shares	Rs. 10/-	Rs. 35.438 millions

Note : Of the above Equity Shares : 9,34,749 Equity Shares of Rs.10/- each fully paid up and 122 fractional coupons of Rs. 5/- each fully paid up were allotted as Bonus shares by capitalization of reserves in earlier years.

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	35.400	35.400	35.400
2] Reserves & Surplus	563.500	524.200	432.400
NETWORTH	598.900	559.600	467.800
LOAN FUNDS
1] Secured Loans	952.600	654.600	367.400
2] Unsecured Loans	126.500	128.200	84.800
TOTAL BORROWING	1079.100	782.800	452.200
TOTAL	1678.000	1342.400	920.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	1123.700	923.600	773.800
Capital work-in-progress	57.100	8.800	3.100
INVESTMENTS	25.300	13.300	8.300
CURRENT ASSETS, LOANS & ADVANCES
Inventories	596.400	587.500	400.700
Sundry Debtors	468.900	446.600	220.600
Cash & Bank Balances	23.000	25.200	23.400
Loans & Advances	154.800	90.200	114.800
Total Current Assets	1243.100	1149.500	759.500
Less: CURRENT LIABILITIES & PROVISIONS
Current Liabilities	782.500	755.500	626.100
Provisions	5.300	2.600	7.200
Total Current Liabilities	787.800	758.100	633.300
Net Current Assets	455.300	391.400	126.200
MISCELLANEOUS EXPENSES	16.600	5.300	8.600
TOTAL	1678.000	1342.400	920.000

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	3357.900	2741.477	2047.433
Profit/(Loss) Before Tax	72.600	138.404	104.175
Provision for Taxation	32.800	38.800	44.159
Profit/(Loss) After Tax	39.800	99.604	60.016
Export Value	NA	598.813	498.103
Import Value	NA	562.097	336.309
Total Expenditure	3354.800	2605.729	1943.258

SUMMARISED RESULTS

PARTICULARS	31.03.2007
Type	Full Year
Sales Turnover	3570.500
Other Income	23.900
Total Income	3594.400
Total Expenditure	3278.600
Operating Profit	315.800
Interest	139.500
Gross Profit	17.6.300
Depreciation	86.600
Tax	17.800
Reported PAT	44.600
Dividend (%)	0.000

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2007
Type	1st Qtr
Sales Turnover	818.100
Other Income	2.000
Total Income	820.100
Total Expenditure	726.200
Operating Profit	93.900
Interest	44.800
Gross Profit	49.100
Depreciation	23.700
Tax	4.100
Reported PAT	18.000

200706 Quarter 1 --------------- Notes Expenditure Includes (Increase) / Decrease in Stock in Trade Rs 101.794 million Consumption / Purchases of Raw Materials Rs 342.252 million Staff Cost Rs 71.511 million Other Expenditure Rs 210.529 million Tax Includes Provision for Current Tax Rs 2.750 million Fringe Benefit Tax Rs 1.350 million Deferred Tax Rs 3.312 million EPS is Basic and Diluted Status of Investor Complaints for the quarter ended June 30, 2007 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil 1. The above results have been reviewed and recommended by the Audit Committee and taken on record by the Board of Directors in their meeting held on July 26, 2007. 2. Previous quarters figures have been regrouped / rearranged wherever necessary. 3. The Statutory Auditors of the Company have carried out a limited review of the above quarterly unaudited Financial results.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt Equity Ratio	1.67	1.29	1.28
Long Term Debt Equity Ratio	1.03	0.88	0.81
Current Ratio	1.06	1.08	0.99
TURNOVER RATIOS
Fixed Asset Ratio	2.20	2.71	2.35
Inventory	5.52	6.90	6.47
Debtors	7.14	10.23	11.68
Interest Cover Ratio	1.71	2.76	2.30
Operating Profit Margin (%)	7.57	8.49	9.45
Profit Before Interest and Tax Margin (%)	5.33	6.36	7.00
Cash Profit Margin (%)	3.45	5.05	4.73
Adjusted Net Profit Margin (%)	1.22	2.92	2.28
Return on Capital Employed (%)	11.79	19.44	19.60
Return on Net Worth (%)	7.15	20.29	14.34

STOCK PRICES

Face Value	Rs.10/-
High	Rs.167.25
Low	Rs.167.25

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The company was incorporated on 31^st December, 1946 at Udaipur in Rajasthan under the name and style of Mew Oil & General Mills Limited having Company Registration Number 469. Subsequently, the name of the company was changed to Pesticides India Limited with effect from 01.01.1990.

Again, the name of the company was changed to present.

PILL Finance and Investment is a 100% subsidiary of the company. As a part of its diversification, it has set up a plant to manufacture polyurethane compounds used in the adhesive industry at a project cost of Rs. 23.000 millions and also put up a compounding unit for supplying plastic and polymer moulders.

In the year 1999, the expansion which was undertaken at the company’s plant at Panoli including state of art multi product plant for manufacturing of industrial chemical has been completed and is now fully operational.

The polymer business witnessed a revival and growth in business after a prolonged necessary situation with the industrial climate showing positive trends.

The company Manufactures Pesticides and Insecticides. The company is also engaged in other segments such as Minerals, Metering and Allied Products.

MANAGEMENT DISCUSSION & ANALYSIS:

Industry Structure & Developments: 

Indian Agriculture, which has been passing through a flat phase, has now become a focus area particularly for the Central Government. With the right policy initiatives, Indian Agriculture is capable of delivering a second Green Revolution. The Central Government is actively promoting market driven agriculture, diversification of crops and opening up of the markets. Horticulture (fruits and vegetables) and seeds continue to be future growth areas with adequate support from the government. A National Horticulture Board has also been established. 

With this focus at the policy front, the medium and long term prospects of agriculture are really sound. 

In the short term, the major dependence on monsoon and the poor infrastructure of material movements and markets do have a major impact on agricultural production. 

The monsoon in 2004 was by and large normal with some regional imbalances. Monsoon was particularly beneficial in the Southern part of the country, which reflected in the good agricultural production in the region. 

The seed industry continued its upward trend. Farmers are increasingly adopting hybrid seeds due to the higher yield and better quality of produce. Genetically modified cotton established itself in the market, with several new companies getting approvals, entering the field and expanding the market. However spread of illegal BT cotton seed is a matter of concern for the Industry. 

The patent legislation in line with WTO requirements was adopted with effect from 1^st January, 2005. Given the large number of generics in the market. the impact is expected to be limited during the next few years. However, in the long run Indian companies will need to have access to unique molecules. 

The fine chemical business ail over the world has come under a huge cost pressure due to very large increase in petroleum prices leading to increase in downstream petrochemical product prices. On the other hand, due to a general situation of over supply the selling prices have remained constant leading to erosion in profit margins in most of the chemical companies. The problem in India is compounded due to poor export realizations caused by the strengthening Rupee. 

On the other hand. opportunities are always available due to large number of pharmaceutical products coming off patent in the U.S. as also by pursuing right market opportunities. 

Due to changing global consumption trends in the areas of electronics, photography etc. there is a large potential business possibility from companies looking to outsource such performance chemicals like electronic chemicals, photographic chemicals etc. 

The major customer segments of engineering plastic compounds, auto components and the electrical & electronics industry, are going through a remarkable growth phase. 

However, most OEMs are demanding lower prices at a time when the prices of steel and other raw materials are soaring. Therefore, compounders must compete with cheaper economies and lower margins. 

Performance: 

The Company continued its growth trend and posted better results, as already indicated. Expansion of geographical reach especially in high growth areas has started showing results. The Company has now established itself in the plantation sector in Southern and Eastern parts of the Country. The plant nutrient segment recorded an impressive growth during the year. 

Major activity was undertaken to enhance training of field staff and improve the distribution network to enlarge the reach of the Company's products. A huge amount has been spent on carrying out extension services and product demonstrations. As a part of their corporate commitment and philosophy the training on safe use of pesticides has been made an integral part of these programmes. 

The Fine Chemical business witnessed a delay in commissioning of the new manufacturing plant which led to the deferment of part of the sales to the next year. 

A significant achievement in the year under review was diversification of the business portfolio of contract manufacturing from mainly agro chemicals to pharmaceutical intermediates and performance chemicals like photographic chemicals, electroplating chemicals etc. 

The company has been successful in contacting several new customers and has generated several inquiries from such customers. The company is very hopeful that these enquiries will result in long term business contracts. The establishing of the company's Japan office has been timely, and business volumes are expected to grow to significant levels in the next three years. 

The Polymer Division clocked sales growth of about 57% in financial year 2004-05 over the previous year. However profit margins continue to be under pressure due to intense competition. 

Outlook: 

The onset of monsoon in 2005 though delayed. has been widespread and adequate in most parts of the country. Given the growth strategies, better systems, and new initiatives taken by the company, continued improved performance is expected in the current year.

In light of the new patent regime it is proposed to source new technologies and commercialize them in a phased manner. This will secure the Company's future. 

Further, due to the various initiatives taken, the company expects to finalize new contract manufacturing businesses during the current year. 

Polymer business is targeted to grow by about 30% for the financial year 2005-06 over the previous year of 2004-05. 

To augment its supply chain, it has made toll manufacturing arrangement with one of the leading toll manufacturer near its manufacturing facility at Panoli (Gujarat). It shall also strengthen its marketing team to achieve its budgeted sales targets. 

Given these growth strategies and new initiatives, all round improved performance is expected in the current year. 

SUBSIDIARIES: 

PILL Finance & Investment Ltd. (PILL-F): 

The Company posted a profit of Rs.0.765 millions during the year. 

PI Life Science Research Ltd. (PILSR):

To achieve a better focus in R&D activities, a new subsidiary was established during the year. PILSR has established a state of the art R&D Laboratory and commenced activities during the current year: 

Pursuant to section 212 of the Companies Act, 1956, the Directors' Report and Accounts of the company's subsidiaries, as required, are appended. 

The company's fixed assets of important value include freehold and leasehold land, building, plant and machinery, furniture, fixture and office equipments, vehicles, library, tools and equipments and R & D equipments.

The company is in trade terms with :-

· Kaiser Industries Limited, Delhi

· Mipak Plastics Private Limited, Mumbai

· Maldar Barrels Private Limited, Mumbai

· Paper Plast Industries (India) Private Limited

· Vimal Chemicals, Udaipur, Rajasthan

· Ameeja Enterprises, Mumbai

· Akry Organics (Private) Limited, Mumbai

· Ajay Packaging, Daman

· Jalaram Box Makers Private Limited, Ankleshwar

· Krishna Organics (Private) Limited, Vadodara, Gujarat

· Mineral and Matel Industries, Bhavnagar

· Maharashtra Metal Works Private Limited, Mumbai

· Neogen Chemicals Limited, Thane, Maharashtra

The company's important overseas trading partners are Mitsubishi and Marubeni of Japan.

Products
Formulations:
Accephate	75% WP
Colt	25% EC
Colt	10% EC
Divap	100% EC
Diafuran	3G
Fosmite	50% EC
Foratox	10G
Kadett	36% WSL
Kitazin	48% EC
Solaro	50% WP
Saturn	50% EC
Rocket	44% EC
Carina	50% EC
Taurus	75% WP
Technical
Phorate
Ethion
DDVP
MCP
Profenofos

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.41.18
UK Pound	1	Rs.82.41
Euro	1	Rs.55.35

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		63

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		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

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