MIRA INFORM REPORT

Report Date :

27^th February, 2007

IDENTIFICATION DETAILS

Name :	L’OREAL INDIA PRIVATE LIMITED
Registered Office :	Rhone Poulenc House, A Wing & B Wing, J. K. Ahire Marg, Worli, Mumbai – 400 025, Maharashtra
Country :	India
Financials (as on) :	31.12.2005
Date of Incorporation :	19.02.1991
Com. Reg. No.:	11-60363
CIN No.: [Company Identification No.]	U85190MH1991PTC060363
TAN No.: (Tax Deduction & Collection Account No.)	MUML01908E
PAN No.: (Permanent Account No.)	AAACC0738K
Legal Form :	Private Limited Liability Company Subject is a wholly owned subsidiary of L’Oreal S. A., France
Line of Business :	Manufacturing, importing and exporting of cosmetics, toiletries, personal and healthcare products such as hair shampoos, hair dyes, face creams, etc.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 3500000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	The company is engaged in manufacturing and marketing of Hair Shampoos, Hair Dyes and Face Creams. It has some accumulated losses. Trade relations are reported as fair. Payments are reported as slow but correct. However, the company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Rhone Poulenc House, A Wing & B Wing, J. K. Ahire Marg, Worli, Mumbai – 400 025, Maharashtra, India.
Tel. No.:	91-22-24935398 / 24983000
Fax No.:	91-22-24933283 / 24953798
E-Mail :	info@loreal.co.in advisor@lorealindia.com plmishra@in.loreal.com
Website :	http://www.loreal.co.in http://www.loreal-finance.com
Factory 1 :	Umbergaon, Gujarat
Factory 2 :	Gut No. 426, Chakan talegaon Road, Mahalunge Ingle, Pune – 410 501, Maharashtra

DIRECTORS

Name	Mr. Didier F. Villamyeus (Foreign)
Designation	Managing Director
Address	Malabar Court, 3^rd Floor, 14, BG Kher Marg, Mumbai – 400026, Maharashtra, India
Date of Birth :	23.06.1964
Date of Appointment	08-06-2001
DIN / PAN No. :	00502625
Name	Mr. Dinesh Dayal
Designation	Wholetime Director
Address	73, Maker Tower 'A’ Cuffee Parade, Mumbai – 400 005, Maharashtra
Date of Appointment	08-06-2001
Date of Ceasing	12-06-2002
Name	Mr. Abhey Yograj
Designation	Director
Address	N-94, Panchsheel Park, New Delhi – 110 017, India
Date of Appointment	17-03-1995
Name	Mr. Husson Claude (Foreign)
Designation	Director
Address	104, Rue D. Aguesseau 92100, Boulogue
Date of Appointment	27-09-1996
Name	Mr. Evard Alain (Foreign)
Designation	Director
Address	6, Hemeau Du Golf 78590, Noisy Le R 01, France
Date of Appointment	31-12-1997
Name	Mr. Eric Delamare (Foreign)
Designation	Managing Director
Address	24, Rue Agrippa D’Aubigne 80 000, Amines, France
Date of Ceasing	31-05-2001

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Loreao SA (France)	228100050
Laboratories Garuler ETC Body Corporate (France)	50

BUSINESS DETAILS

Line of Business :	Manufacturing, importing and exporting of cosmetics, toiletries, personal and healthcare products such as hair shampoos, hair dyes, face creams, etc.
Products :	Hair Shampoos Hair Dye Face Creams
Brand Names :	L'Oreal Paris, Garnier and Maybelline New York

GENERAL INFORMATION

No. of Employees :	300
Bankers :	Not Available

Auditors :	v Lovelock & Lewes Chartered Accountant 1104, Raheja Chambers, Nariman Point, Mumbai – 400 021, Maharashtra
Tel. No.:	91-22-22824242 / 22834646
Subsidiaries :	v Cosmetique Active International –France v Loreal Saipo SPA-Italy v Cobelsa Cosmeticos S.A. – Spain v L’oreal US Maybelline US/DIV v L’oreal US Retail –DIV v Loreal US Maybelline/MFG v Swan Beauties Private Limited – India v Yasulor Indonesia – Indonesia v L’oreal Indonesia-Indonesia v Loreal Singapore Pte. Limited. – Singapore v Loreal Australia – Australia v L’oreal South Korea – Korea v L’oreal Golden Limited v L’oreal USA Inc-U.S.A. v Elbelle – South Africa v Marigny Manufacturing Australia Pte. Limited v L’oreal Denmark A/S – Denmark v L’oreal Thailand Limited – Thailand v L’oreal Germany v L’oreal Philippines v L’oreal U.S.A. Matrix v Beauticos International – China v Frabel S.A. – Mexico v L’oreal Deutschland GMBH v L’oreal Finland v L’oreal Div. Productos Professionales SA – Spain v L’oreal Malaysia v L’oreal Polaska – Poland v Lai Mei – Cosmetics International Trading Cy Limited – China v L’oreal Canada v L’oreal New Zealand Limited v L’oreal Taiwan v L’oreal U.S.A. Product Inc.
Associates :	Vichy Laboratories
Parents Company :	L’Oreal S. A., France

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
230,000,000	Equity Share	Rs. 10/- each	Rs. 2300.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
229,500,100	Equity Share	Rs. 10/- each	Rs. 2295.001 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2005	31.12.2004	31.12.2003
SHAREHOLDERS FUNDS
1] Share Capital	2295.001	2295.001	2281.001
2] Reserves & Surplus	0.000	0.000	0.000
3) (Accumulated Loss)	[1436.637]	(1458.595)	(1478.466)
NETWORTH	858.364	836.406	802.535
LOAN FUNDS
1] Secured Loans	0.000	0.000	0.000
2] Unsecured Loans	34.000	0.000	0.000
TOTAL BORROWING	34.000	0.000	0.000
TOTAL	892.364	836.406	802.535
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	653.738	558.298	510.808
Capital work-in-progress	97.852	63.165	29.701
INVESTMENTS	0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
Inventories	551.226	380.544	301.560
Sundry Debtors	40.340	20.720	13.751
Cash & Bank Balances	143.533	168.800	39.060
Loans & Advances	215.848	138.022	214.757
Total Current Assets	950.947	708.086	569.128
Less:
Current Liabilities	801.325	487.527	302.475
Provisions	8.848	5.616	4.627
Total Current Liabilities	810.173	493.143	307.102
Net Current Assets	140.774	214.943	262.026
MISCELLANEOUS EXPENSES	0.000	0.000	0.000
TOTAL	892.364	836.406	802.535

PROFIT & LOSS ACCOUNT

PARTICULARS	31.12.2005	31.12.2004	31.12.2003
Sales Turnover [including other income]	3306.139	2251.472	1521.559
Profit/(Loss) Before Tax	14.458	19.871	(82.285)
Provision for Taxation	363.341	--	(1313.360)
Profit/(Loss) After Tax	[348.883]	19.871	(1395.645)
Export Value	108.640	61.036	14.837
Import Value
Raw Material and Packing Materials		197.394	104.242
Finished Goods	N.A.	102.921	98.789
Capital Goods		6.481	8.860
Total Import	N.A.	306.796	211.891
Total Expenditure	3291.681	2231.601	1603.844

KEY RATIOS

PARTICULARS		31.12.2005	31.12.2004	31.12.2003
PAT / Total Income	(%)	[10.55]	0.88	(91.724)
Net Profit Margin (PBT/Sales)	(%)	0.00	0.88	(5.408)
Return on Total Assets (PBT/Total Assets}	(%)	1.92	1.57	(7.415)
Return on Investment (ROI) (PBT/Networth)		0.01	0.02	(0.102)
Debt Equity Ratio (Total Liability/Networth)		0.98	1.59	(0.382)
Current Ratio (Current Asset/Current Liability)		1.17	1.44	(1.853)

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS

The company’s valuable fixed assets includes Land, Factory Building, Plant and Mahcinery, Furniture And Fixtures, Vehicles, Leasehold Improvements, Intangible Assets.

Generic Names of Three Principal Products/Services

Item Code No. (ITC Code) – 330510-90

Product Description: Hair Shampoo

Item Code No. (ITC Code) – 330590-40

Product description: Hair Dye

Item Code No. (ITC Code)- 330499-10

Product Description: Face Creams

HISTORY

The name of the company was changed to Indelor India Private Limited with effect from 4^th July, 1996.

Again, the name of the company was changed to the present with effect from 4^th July, 2000.

In 1907, a young French chemist, Eugene Schueller, created an innovative and safe hair colour formula. With this, the first principle of safe innovation in the interest of beauty was set and the story of L'Oreal began. Two years later, Mr. Eugene Schuller registered his company, later to be named L'Oreal. Subsequently, L'Oreal products were launched across Europe, thus beginning the worldwide expansion of the L'Oreal group, now present in over 150 countries.

MILESTONES

1991	L'Oreal begins business in India with the launch of the Ultra Doux range by Laboratories Garnier, through an agent.
1994	Creation of Laboratories Garnier India, a 100% owned L'Oreal Subsidiary
1995	Laboratories Garnier introduced its first skincare product, Synergie, with the first anti-wrinkle cream on the Indian market.
1996	L'Oreal entered the haircolour market with Excellence Crème, the first brand signed L'Oreal Paris
1997	Creation of the Professional Products Division. Set up of two technical centers in New Delhi and Mumbai. Launch of Majirel Hair Colour
1998	Launch of Casting, Diacolor and Dulcia
1999	Launch of L'Oreal Paris make-up and skin care at select outlets
2000	(Subsidiary) company changed name from Indelor India to L'Oreal India. Launch of Nutrisse Hair Colour by Laboratories Garnier.
2001	Launch of Series Expert Hair care by L'Oreal Professional.
2002	Launch of Active Cosmetics Department, with VICHY.

WEBSTIE DETAILS

SHARE BUYBACK

6/29/2005

Clichy, Wednesday June 29th, 2005 – 6.00 p.m.

SHARE BUYBACK

The Board of Directors of L’Oréal, which met on June 29th, 2005 under the chairmanship of Sir Lindsay Owen-Jones, noted that the share buyback programme launched on June 15th, 2004, under which twenty one millions eight hundred and forty thousand shares have been bought back for an amount of one billion two hundred and fifty millions euros, had been completed. The Board of Directors decided, in application of the resolution approved by the Annual General Meeting of April 26th, 2005, to carry out further buybacks of L'Oréal shares over the next twelve months for a maximum amount of one billion two hundred and fifty millions euros.

The shares thus bought back will be cancelled. This programme could of course be interrupted in the event of a strategic opportunity.

"This news release does not constitute an offer to sell, or a solicitation of an offer to buy, L'Oréal shares. If you wish to obtain more comprehensive information about L'Oréal, please refer to the public documents registered in France with the Autorité des Marchés Financiers (also available in an English language version on their Internet site www.loreal-finance.com). This news release may contain some forward-looking statements. Although the Company considers that these statements are based on reasonable hypotheses at the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual results to differ materially from those indicated or projected in these statements."

Analysts and institutional investors

Mrs Caroline MILLOT

tel: +33.1.47.56.86.82

Fax: +33.1.47.56.80.02

Jtheirnalists

Mr Mike RUMSBY

tel : +33.1.47.56.76.71

http://www.loreal.com

L’ORÉAL REWARDS MARKETING MINDS OF THE WORLD

6/22/2005

Paris, 21 June, 2005—Ftheir teams of students from around the world competed last night in the race to win the title for the most innovative and brilliant marketer. Students were rated on creativity, market analysis, coherence with the brand’s values, communications skills and team presentation style. The fate of the finalists was decided by a high profile jury made up of L’Oréal’s top management including L’Oréal’s Chairman and CEO, Sir Lindsay Owen-Jones, Executive Vice-President Consumer Products, Patrick Rabin; Executive Vice President for Human Restheirces-Geoff Skingsley; General Manager of L’Oréal Paris, Nicolas Hieronimus, and special guest-Mc Cann Erickson’s CEO, John Dooner.

This year’s champions were the Swiss team “Bamboo” from Université St Gall. They presented a new miniature-size packaging for L’Oréal’s Studio Line FX range. Runners-up in second place was the Australian dynamic trio “The Beasties” from Monash University with Studio Line FX Extreme, followed by shared third place Malaysians “Osirians” from University Teknologi Malaysia with “Trust The Instincts” mobile Studio Line FX range and South Africa’s all-girls’ team “Sisonke” from University of Cape Town with Studio Line Climatize range. The Best Communication Campaign award went to the “Chile Challengers” from Chile’s Universidad Adolfo Ibañez with Dare.

Launched in 1993, L’Oréal Brandstorm is an international marketing competition that provides undergraduate marketing and graduate MA students a golden opportunity to design a new product line for an existing L’Oréal brand. This year’s brand case study was L’Oréal Studio Line styling products. L’Oréal provides all participants with a real life marketing experience: an in-depth brief on the brand and the market, a chance to meet face to face with a professional marketing executive and a unique opportunity to work with the brand’s communication agency developing a full communications campaign that includes product mock-ups, posters, and ads.

President of the jury, CEO and Chairman, Sir Lindsay Owen-Jones, declared: “One of the secrets of L'Oréal's success is its spectacularly international and culturally diverse workforce.”

L’Oréal Brandstorm provides the L’Oréal group with an opportunity to recruit international talents. Already in its 13th year, the competition has attracted over 14,000 students from more than 176 schools around the world, allowing L’Oréal marketing managers and human restheirces recruiters to identify talented potential employees in action.

Last year’s winners described L’Oreal Brandstorm as fun, challenging and intense. Most admitted that the element of exposure to the real-life marketing world and brand management was what drove them to participate.

Top prizes for last night’s competition include an exciting trip to fashion capitals of the world and the chance to become a marketing product manager at L’Oréal for real!

L’OREAL TO ACQUIRE SKINCEUTICALS

5/18/2005

L’OREAL TO ACQUIRE SKINCEUTICALS

Strategic acquisition of a leading professional skin care brand in the USA

L’Oréal, the world’s largest beauty company, announced today that it has signed an agreement to acquire SkinCeuticals, a professional skin care company. Founded in 1994 and headquartered in Dallas, Texas, SkinCeuticals, a privately held company, is one of the largest and fastest growing brands in the professional premium skin care market in the U.S. Through a strong and specialized distribution network, the company sells to dermatologists, plastic surgeons, and high end spas. SkinCeuticals sales in 2004 amounted to 35$M.

“The acquisition of SkinCeuticals allows L’Oréal to strengthen its position in high-performance professional skin care,” said Lindsay Owen-Jones, Chairman and CEO of L’Oréal. “This market, in which SkinCeuticals is a leading player, is a particularly promising one with high international potential.”

“SkinCeuticals has already acquired an excellent reputation in the U.S. dermatological world,” commented Jean-Paul Agon, President and CEO of L’Oréal USA. “This acquisition will also allow L’Oréal to enter the strong and growing market of high end spas in the U.S.”

“They are delighted to join forces with an organization that is not only the world’s largest cosmetics company, but whose commitment and investment in research and development is unsurpassed in the industry”, said Alden Pinnell, co-founder of SkinCeuticals.

SkinCeuticals will be part of the Active Cosmetics Division of L’Oréal, which has recently experienced strong growth. This acquisition further enhances an already strong portfolio of brands of American origin, such as Ralph Lauren, Redken, Maybelline, SoftSheen-Carson, Matrix and Kiehl’s.

The transaction will become final upon the customary closing conditions, including antitrust clearance.

From its beginnings, the L'Oréal Group has developed activities in the field of cosmetics, and is the world leader in the cosmetics industry.

The L'Oreal Group is also active in luxury goods and in the dermatological and pharmaceutical fields

Research activities are focused on three subjects: skin, hair and color.

In the depth of skin

L'Oreal searches for the most innovative ways of providing skin with the elements essential to its equilibrium. Preserving the skin health, preventing the chronological aging and photoaging due to UV rays, transport active compounds in situ, …so many areas of L'Oreal research.

Here are some examples of means employed to achieve these objectives:

Human Skin Models: L'Oreal Research teams have developed these three-dimensional cultures by introducing skin cell types such as keratinocytes, melanocytes and Langerhans cells.

Vectorisation: from liposomes to nanocapsules, these nanometric vectors improve the efficacy of care products.

Skin imaging: L'Oreal has improved imaging techniques over the last 30 years to enable the study of the skin and assess the effects of care products. Confocal microscopy, ultrasonic imaging and Magnetic Resonance Imaging (MRI) are a few of the methods used by L'Oreal.

A pioneer in the field of hair study

For L'Oreal, hair is a real scientific adventure. Worldwide, its laboratories are engaged in research on the subject. Whether Caucasian, African or Asian hair, biologists are interested in the living follicle, while biophysicists and chemists are concerned by the fiber. Several generations of researchers have now gained unique scientific knowledge on hair and haircare products. Insight into how the hair is constituted has resulted in the development of :

longer-lasting hair color,

biomimetic molecules such as certain ceramides which ensure hair surface cells cohesion,

softer cleansing agents in shampoos and conditioners in the form of lacquer or gel

Studying the different intimate components of the hair follicle, by cultivating hair in vitro, is one of the aims of "hair biology" teams.

Color
Working at the cutting-edge of technology, L'Oreal Research is today investigating new make-up effects such as transforming colors by "trompe l'œil" optic phenomena.
In the field of haircolor, L'Oreal now uses an exclusive collection of 13,000 colorants.
Nature provides a valuable inspiration for finding new pigments using biotechnology.

Manufacturing

Production Policy

With 42 plants worldwide, more than 14,000 employees in manufacturing sites and over 3,9 billion units produced, the industrial organisation of L’Oréal is a dynamic contributor to the group's growth with a key role in ensuring sustainable development.

Control of supply chain : raw materials are developed and patented by L'Oréal Research, then analyzed and certified before utilization. Flexibility : new facilities, innovative systems and "just-in-time" production.

L'Oréal industry : a culture of quality

Concern for the well-being of personnel and their safety.

Environmental conservation

The company has three divisions such as:

v L'Oreal Consumer Products Division

v L'Oreal Professional Products Division

v Active Cosmetics Department

The Consumer Products Division houses the 3 leading international signatures - L'Oreal Paris, Garnier and Maybelline New York. This division offers consumers high technology global brands, sold at competitive prices through retail markets. It markets large product categories of hair care, hair colourants, skincare and make-up.

In India, the consumer division has been a pioneer in both products and merchandising by:

Launching the first ever Garnier Synergie Anti Wrinkle Cream, Eye Contour Gel and L'Oreal Excellence Hair Colour and the Maybelline Non Transfer Lipsticks.

The Professional Products Division is the world leader in its market. It offers a range of haircare and haircolour products used by professional hairdressers and sold to consumers exclusively in salons.

The Active Cosmetics Department develops dermo-cosmetic healthcare brands for sale through pharmacies and specialist pharmacy outlets.

Pursuant to the provisions of Section 43A (2A) of the Companies Act, 1956 and Companies (Amendment) Act, 2000, the status of the company has been changed to private limited company with effect from 29^th January, 2001.

The company has 5 International brands in the Hair Care, Hair Colour, Skin Care and Make Up categories.

Company’s fixed assets of important value includes plant & machinery, furniture & fixture, vehicles, leasehold improvements and distribution rights.

Consumer Products

The Consumer Products Division is dedicated to offering all consumers its high technology products at competitive prices through mass-market retailing channels. The Division’s brands develop haircare, skincare, make-up and perfume products that meet the aspirations of all of its customers.

The Division's 5 international brands are L'Oréal Paris, Garnier, Maybelline New York, Softsheen. Carson and Le Club des Créateurs de Beauté.

Professional Products

The Professional Products Division is at the service of hairdressers worldwide. Their complementary brands meet the requirements of salon professionals in colorants, hair care, texturing and styling formulas and provide salon customers with a wide range of innovative, high-performance products. The Professional Products Division of L’Oréal is made up of ftheir different brands: L'Oréal Professionnel, Kérastase, Redken 5th Avenue NYC and Matrix.

Luxury Products

The prestigious brands of the Luxury Products Division offer consumers top of the range products. Clients of selective retail outlets (department stores, perfumeries, travel retail outlets, and the brands own boutiques) receive personalized advice at the point of sale, enabling them to choose the products best suited to their needs.

Lancôme, Helena Rubinstein, Biotherm, shu uemura and Kiehl’s offer premium products known for their innovation, performance and quality. The Luxury Products division houses also some of the world's top perfume brands: Giorgio Armani, Ralph Lauren, Cacharel, Paloma Picasso and Guy Laroche.

Active Cosmetics

The Active Cosmetics Department designs and markets dermo-cosmetic skin care products that are sold in pharmacies and specialist retailers. These products offer consumers proven safety and effectiveness supported by advice from pharmacists and dermatologists.

The Department’s three brands, Vichy, La Roche Posay and innéov, offer skin care, sun care, hair care and make-up products.

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various stheirces including but not limited to: The Ctheirts, 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] Ctheirt 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 :

Their 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.

Their 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.44.20
UK Pound	1	Rs.86.72
Euro	1	Rs.58.23

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 unfavtheirable 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	Unfavtheirable & favtheirable 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