MIRA INFORM REPORT

Report Date :

27.04.2007

IDENTIFICATION DETAILS

Name :	MANGA CAPSULES LIMITED
Registered Office :	Laxmi Vijay Building Peth Road, Panchavati, Nashik;422003, Maharashtra
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	29.12.1997
Com. Reg. No.:	112697
CIN No.: [Company Identification No.]	L2423PMH1997PLC112697
TAN No.: [Tax Deduction & Collection Account No.]	NSKMO2192B
Legal Form :	A Closely held Public limited liability company.
Line of Business :	Manufacturer of Emph Hard Gelatine Capsules Shell

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 260000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Laxmi Vijay Building Peth Road, Panchavati, Nashik;422003, Maharashtra
Tel. No.:	91-95253-2315300
E-Mail :	info@mangacapsuloes
Office :	Shop No. 5, NMC complex, Vegetable Market Sharanpur road,  Canada Corner,  Nashik -2
Tel. No.:	91- 253 - 315300
Fax No.:	91- 253 - 316300
Sale office :	44/ 47 Khanna Construction hose, behind Flora, Restaurant Khan Abdul Gafar Khan Road, Worli Sea face, Mumbai - 400018
Tel. No.:	91- 22 - 4921808
Fax No.:	91- 22 - 4928567
E-Mail :	business@mangacapsules.com Mangacap@vsnl.com
Factory 1 :	No. 157, Jaulke Village, Mumbai- Agra Road, Towards Ozar Township, Nashik – 422006
Tel. No.:	91 -53 - 303500 / 303600

DIRECTORS

Name :	Mr. Vijay B. Patil
Designation :	Chairman
Address :	46/3, Peth road, Panchavati, Nasik;422003
Date of Birth/Age :	23.08.1959
Date of Appointment :	29.12.1997
Name :	Mr. Goldie Anand
Designation :	Managing Director
Address :	6, Poonam Society, near Bytco College, Ashirwad, Nasik Road;422101
Date of Birth/Age :	03.06.1953
Date of Appointment :	29.12.1997
Name :	Mr. Rajpal Singh Anand
Designation :	Director
Address :	6, Poonam Society, near Bytco College, Ashirwad, Nasik Road;422101
Date of Birth/Age :	13.12.1975
Date of Appointment :	29.12.1997
Name :	Mr. Janak Mehta
Designation :	Director
Address :	A-5 Aruna Apts, Dindari Road, Panchavati Nasik;422003
Date of Birth/Age :	19.04.1960
Date of Appointment :	22.07.1998

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Goldie Anand	450510
Harjit Singh Anand	10
Jasbir Singh Anand	17510
Rajpal Singh Anand	39010
Mukund Kokil	2010
Ranjit Singh Anand	53010
Vijay Patil	720230
Mukund Patil	10
Sweety Singh Channa	209000
Raghuvir Singh Channa	4000
Harpreetswingh Anand	2000
Surekha Vijay Patil	2000
Sudip Singh Channa	3000
Harpalsingh B. Anand	9000
Janak Mehta	238500
Ranjit Kaur Anand	3000
Jaspreet Kaur Anand	161500
Balpreet Aingh Anand	3000
Rane Shivaji Baburao	2500
Temre shankarlal Hirlal	19200
Kalantri Chandrakant Badrinaryan	19200
Sharma Jagdish Sadhuram	19200
More Rajesh Shravan	19200
Tathe Panditrao	19200
Shaik Shakir Razzak	19200
Modi Dinorhi Mulchand	19200
Kalantri Suresh B.	19200
Kalantri Radheshyam B.	19200
Satnam KAur Chadha	7177
Lovely Kaur Chadha	5600
Dolly Chadha	5600
Neeta Kalra	6200
Neha Karla	7100
Saran Kalra	7100
Mandeep Kalra	7100
Surinder Singh Anand	7000
Raja Anand	6700
Soun Anand	6700
Lovely Anand	6700
Dolly Anand	6700
Mamta Anand	6700
Lalit kapoor	7100
Neelam Kapoor	7000
Pankaj Kapoor	7100
Gaurav Kapoor	7000
Shrichand Ranwa	7000
Mahendra Ranwa	7000
Omprakash Ranwa	7100
Gopal Lal	7000
Shreenivas Lal	7100
Suresh Lal	7100
Bhupendra Lal	7000
Suphdev Singh Sahani	7100
Tripta Kaur Sahani Narendeer Singh Sahani	7000
Bunty Sahani	7000
Maan Singh Sahani	7000
Bapu Sanap	7000
Laxaman Sanap	7000
Rqaghav Sanap	7000
Sjivaji Niomse	65223
Bhaskar Nimse	63000
Shripad Chowdhary	63000
Pandarinath Hingne	63000
Dilip Sabaji Khatale	63000
Santosh R Kamankar	63000
Gurukh Singh Anand	3,40,000
Vaibhav v Patil	555000
Raj Kaur Anand	35000
Balbir Singh Anand	33000
Gurjeet kaur Anand	33000
Avneet kaur Anand	33000
Amandeep singh Anand	33000
Mona Kaur Anand	33000
KJaspal Singh Anand	17500
Sarbjeet kaur Anand	161500
Balpreet Kaur Anand	1500

BUSINESS DETAILS

Line of Business :

Manufacturer of Emph Hard Gelatine Capsules Shell

Products :

Product Description	Item code No
Emph Hard Gelatine Capsules Shell	350300

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Empty Gelatine Capsules		--	2100.000	1849.909

GENERAL INFORMATION

No. of Employees :

Bankers :

State Bank of India, Commercial Branch, Dadar(E), Mumbai:400014

Facilities :

Secured Loan:	As on 31.03.2005 (Rs. in Millions)
Term Loan from Banks (secured loan Pari-passu charged of equitable Mortage of land and Building of the company and by the any of hypothecation on present and future plan and Machineries of company guarantee of all Directors)	52.331
Working Capital Facilities from the Banks (Secured by Pari-Passu charge by Stocks, stores and spares, Book-debts and Current Assets besides and Factory Building plant and achinery and personal Guarantee of all the Directors	33.663
Vectors of the Purchase	1.894
Unsecured Loan:	As on 31.03.2005 (Rs. in Millions)
Director	5.175
Deffered	18.712

Banking Relations :	Satisfactory
Auditors :
Name :	M.G. Shouche and Company Chartered Accountant
Address :	Shree Swami Samartha krupa, 18, Prakash Nagar, Near Andha Shla, Shikhrewadi, Nasik Road
Tel. No.:	91-22-2469729
Associates/Subsidiaries :	Maxtrade Max Energy Private Limited Gold Gel-caps Limited Max Formulation Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3995000	Equity Shares	Rs.10/- each	Rs.39.950 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		40.000	43.303	39.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27.400	8.369	11.300
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		67.400	51.672	51.200
LOAN FUNDS
1] Secured Loans		87.900	90.544	91.500
2] Unsecured Loans		23.900	23.641	19.700
TOTAL BORROWING		111.800	114.185	111.200
DEFERRED TAX LIABILITIES		0.000	9.952	0.000
TOTAL		179.200	175.809	162.400
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		115.700	113.900	115.100
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.300	0.287	0.300
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	28.400	21.786	10.300
	Sundry Debtors	33.500	28.060	26.900
	Cash & Bank Balances	9.300	9.503	9.400
	Other Current Assets	0.000	3.995	0.000
	Loans & Advances	17.600	9.355	12.200
Total Current Assets		88.800	72.699	58.800
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	25.600	13.610	11.800
	Provisions	0.000	0.000	0.000
Total Current Liabilities		25.600	13.610	11.800
Net Current Assets		63.200	59.090	47.000
MISCELLANEOUS EXPENSES		0.000	2.533	0.000
TOTAL		179.200	175.809	162.400

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
Sales Turnover		107.192	106.800	73.200
Other Income		0.928	0.385	0.800
Stock Adjustment		0.796	7.226	2.400
Total Income		108.917	114.411	76.400
Profit/(Loss) Before Tax		12.614	6.418	0.46
Provision for Taxation		1.998	1.676	1.900
Profit/(Loss) After Tax		10.616	4.742	2.700
Expenditures :
	Cost of Material Consumed	35.291	38.155	0.000
	Raw Materials	0.000	0.000	21.100
	Excise Duty	0.000	0.000	00.000
	Power & Fuel Cost	0.000	0.000	00.000
	Other Manufacturing Expenses	0.000	0.000	00.000
	Employee Cost	0.000	0.000	05.200
	Selling and Administration Expenses	0.000	0.000	26.900
	Miscellaneous Expenses	0.000	0.000	00.200
	Employees Remuneration and Benefits	7.446	6.842	0.000
	Selling And Distribution	1.066	2.631	0.000
	Operation and Establishment expenses	32.489	38.307	0.000
	Interest	12.377	14.808	0.000
	Depreciation & Amortization	7.605	7.104	0.000
Total Expenditure		96.274	107.847	53.400

SUMMARISED RESULTS

PARTICULARS	30.09.2005
Type	1st Half
Sales Turnover	88.300
Other Income	00.400
Total Income	88.700
Total Expenditure	67.200
Operating Profit	21.500
Interest	07.500
Gross Profit	14.000
Depreciation	03.800
Tax	00.800
Reported PAT	09.200
Dividend (%)	00.000

KEY RATIOS

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Debt-Equity Ratio	1.83	2.10	3.05
Long Term Debt-Equity Ratio	1.83	2.10	3.05
Current Ratio	3.80	4.58	3.79
TURNOVER RATIOS
Fixed Assets	0.77	0.81	0.63
Inventory	4.27	6.65	8.98
Debtors	3.48	3.89	2.59
Interest Cover Ratio	2.02	1.43	1.34
Operating Profit Margin(%)	30.44	26.50	31.42
Profit Before Interest And Tax Margin(%)	23.34	19.85	24.59
Cash Profit Margin(%)	16.99	11.05	10.52
Adjusted Net Profit Margin(%)	9.90	4.40	3.69
Return On Capital Employed(%)	14.32	12.76	12.28
Return On Net Worth(%)	17.19	8.78	7.47

STOCK PRICES

Face Value	Rs.10.00
High	Rs.0.00
Low	Rs.0.00

LOCAL AGENCY FURTHER INFORMATION

Name of the company	Manga Capsules Limited
Presented By	State Bank of India, Commercila Branch, Dadar(E), Mumbai:400014
1) Date and description of instrument creating the change	Agreement of Loan for overall limits (F-C-1) Agreement of Hypo. Of Goods and assets (F-C-2) Letter regarding the grant of Individual limits (F-C-5) All the above agmt’s are dated:28.09.2005 and executed for the creation of a single charge
2) Amount secured by the charge/amount owing on the securities of charge	Rs.25.400 Millions Term Loan: Present (Outstanding)
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	A first Charge by way of Hypothecation of the Borrowers entire good, movables and other assets present and future including documents of title to goods and other assets, such as book-debts outstanding moneys, receivables including receivables by way of cash assistance and/ or cash incentives under the cash Incentives Scheme or any other scheme, claims, including Claims by way of refund of customs/excise duties under the duty Draw backCredit Scheme contracts, insurance policies, gurantees, engagements, securities, investments and rights uncalled capital and all machinery present and future of such form satisfactory to the Bank.
4) Gist of the terms and conditions and extent and operation of the charge.	R.O.I: Term Loan: 2.5% above SBAR .i.e; effective rate @12.75% p.a Payment: Term Loan of Rs.25.400 Millions First quarterly installment of Rs. 1.802 Millions payable on October 2003. Next quarterly installment of Rs.1.860 Millions payable on January 2004. Next quarterly installment or Rs.1.860 Millions payable on april 2004 Next quarterly installment of R.s1.860 Millions Payable on July 2004 Next quarterly installment of Rs.2.010 Millions Payable on January 2005 Next Quarterly installment of Rs.2.010 Millions Payable on April 2005 Next quarterly installment of Rs.2.010 Millions payable July2005 Next quarterly installment of Rs.2.012 Millions payable on January 2006. Next quarterly installment of Rs.2.220 Millions payable on January 2006 Next quarterly installment of Rs.2.220 Millions payable on April 2006. Next quarterly installment of Rs.2.222 Millions payable on October 2006. Next quarterly installment of Rs.2.310 Millions payable on January 2007. Next quarterly installment of Rs.2.310 Millions payable on April 2007 Next quarterly installment of Rs.2.310llions payable on July 2007. Next quarterly installment of Rs.2.310 Millions payable on October 2007. Next quarterly installment of Rs.2.310 Millions payable on January 2008. Next quarterly installment of Rs.2.310 Millions payable on April 2008. Next quarterly installment of Rs.0.770 Millions payable on July 2008. Next quarterly installment of Rs.2.310 Millions payable on October 2007.
5) Name and Address and description of the person entitled to the charge.	State Bank of India , Commercial Branch, Dadar(East), Mumbai:400 014
6) Date and brief description of instrument modifying the charge	--
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.	--

Corporate identity number of the company	L24239MH1997PLC112697
Name of the company	Manga Capsules Limited
Address of the registered office or of the principal place of business in India of the company	Laxmi Vijay Building Peth Road, Panchavati, Nashik;422003, Maharashtra, India
This form is for	Modification of Charge
Type of charge	Hypothecation
Particular of charge holder	State Bank of India, Commercial Branch, Bullet, L.N.Road, Mumbai;400014, Maharashtra, India
Nature of instrument creating charge	Rs.25.400 Millions
Date of instrument Creating the charge	--
Amount secured by the charge	-
Brief of the principal terms an conditions and extent and operation of the charge	--
Description of the property charged	Plant and Machinery, Stock in trade and Book Debts
Particulars of the property charged	A First charge by way of hypothecation of the Borrower’s entire Goods, Movables and Other Assets Present and Future including Documents of Title to the goods and Other assets, such as Book- Debts Outstanding Moneys, Receivables, claims, Bills, invoices, Documents, Contracts, engagements, Securities, Investments, rights and the Present and Future Machinery

Review of Operation and Future Outlook:

The Company’s Performance during the year could not represent substantial improvement due to the then proposed implementation of VAT with effect from 1^st April,2005 and consequently the Sales were affected during the last quarter of the financial year ended 2004-05, compared to the previous year. Reduced level of Scheduled deliveries in the last quarter resulted in stock pile up. The true picture of Sales and Profitability would have been an achievement in the bottom line by about rs.1.500 Millions.

However, the company is excepted to achieve a 10% to 15% growth in the next financial year. The company was able to increase profit before tax to Rs.12.614 Millions from Rs.6.418 Millions in the previous year by stringent cost control measures and increase in its efficiency in the production. Considering the feed back of the market for the product of the Company during the current year, the products and operations of the Company are extremely satisfactory and the Company excepts the improvement in turnover an profit by expanding the fields of capsule and formulations.

Future Plan:

Considering the opportunities in the pharma Industry especially in the fields of Capsules and formulation, the directors have laid-out certain stragies for expansion, and ot augment the long-term funds, haveproposed to avail Public funds through an IPO (intial Public Offer) and made necessary arrnagematns for the maiden public issue.

Fixed Assets:

Land

Factory Building

Plant and Machinery

Electrical installation

Furniture and Fixture

Office equipments

Lab Equipments

Computers

Vehicles

As Per Web Site:

Company Brief 

With a deep respect towards the health of people throughout the world, a company is proud to continue to contribute to the advancement of capsule manufacturing technology. For more than a couple of years, MCL has sought to produce only the highest quality capsules. Since the company's founding in 1998, they have grown to be one of the world's fast growing & upcoming manufacturers & exporters of unfilled hard gelatin capsules, serving various countries throughout the world.

To supply their world wide customer base with the highest quality capsules, company has made a massive commitment to the financial investment necessary to utilize state-of-the-art research & development programs that lead to unsurpassed technical innovation. 'This aggressive policy has enabled them to achieve their remarkable growth and stay ahead of intense international competition.

Comprehensive customer orientation is one of comapny entrepreneurial guidelines. They believe that technically demanding products are only as good as their accompanying services. Excellent customers support service and prompt delivery has helped them establish a long term relationship with customers. Their support services include after-sales guidance, technical advice and usage related solutions.

A company., They believe that competitive pricing Is important to the business. They offer Empty Hard Gelatine Capsules where you want it, when you want it. But there are other things that matter more than money for you ... Delivery schedules, technical back-up, customer-oriented service ... All of these are what they offer to you.

Disappearing economic boundaries new resurging economies, redefined technologies, far-reaching communication links for business globe-trotter of today, it's an all together different operating frontier. A frontier that is opening to the opportunity, risks and rewards of globalization. They all at Manga .Capsules Limited work hand in hand to make secure that all their efforts makes their company the recognizable player in world market.

A Team of Highly Skilled, Technically Sound and Dedicated personnel is the strength of the company. Their total team with utmost Modesty, Strive, to satisfy the Pharmaceutical Industry by Manufacturing Empty Hard Gelatine Capsule Shells as per Customers requirements confirming to all International Standards.

Quality is their foundation and not the ultimate Goal. Solid backup of technology confirms that quality is an Inherit part of their Organization.

Globalization Is a dream that will materialize fully if they follow the path of never ending improvement an unquenchable thirst for better and still better level of performance in other words to surprise their buyers each time.

" Their motto is to cater supreme degree of customer satisfaction with utmost modesty. "

Gelatine Solution

Raw gelatine and water are mixed in the ratio of 1:2 and processed at precise temperature in company melting system. After vacuum is applied, the solution is received in jacketed tanks. Colours and preservatives are added before taking the solution to the machine.

Dipping

Each pin bar has 30 mould pins attached. Six pin bars on cap side and six pin bars on body side are lowered into gelatine solution. Dipping, Dwelling & Withdrawal are so timed to pick up just enough gelatine on the pins according to size of capsules made.

Setting
These pin bars on cap side and body side respectively are raised to the upper deck. While raising, they are rotated for required even distribution of gelatine.

Drying
Temperature and humidity controlled air is blown over the mould pins to remove excess water content from the capsule halves.

To Automatics
From the klins, Pin bars enter the table section in group of 24 Pin bars. One cap bar and one body bar on the center of the machine are oriented and then pushed into the automatics.

Stripping
Cap and body halves are stripped from the pins and positioned in the collets for cutting. Pin bars move to greaser section for polishing & lubrication.

Cutting
Caps and body halves are trimmed to narrow tolerance as per standards. The cuttings are vacuumed away and collected in separate drums.

Joining
The capsule halves move to the center of the machine and enter in the Joiner Blocks. Joined capsules are then pushed on to the conveyor belt.

Finished Capsules
Capsules fall into the drum kept below the cross conveyor. The drum is replaced when full.

Computer Aided Systems
Specially computerized, controlled process system monitors and controls total capsule manufacturing to ensure optimum out-put of highest quality capsules.

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.40.91
UK Pound	1	Rs.81.46
Euro	1	Rs.55.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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