MIRA INFORM REPORT

Report Date :

07.11.2007

IDENTIFICATION DETAILS

Name :	SPAN DIAGNOSTICS LIMITED
Registered Office :	173-B, New Industrial Estate, Road no. 6-G, Udyog Nagar, Udhna – 394 210, Gujarat
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	31.03.1980
Com. Reg. No.:	04-3710
CIN No.: [Company Identification No.]	U24299GJ1980PTC003710
TAN No.: [Tax Deduction & Collection Account No.]	SRTS00578E
PAN No.: [Permanent Account No.]	AADCS3977Q
Legal Form :	A Public Limited Liability Company. The company’s shares are listed on the stock exchanges.
Line of Business :	Subject is engaged in manufacturing of diagnostic reagents, 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 529000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Financial position is satisfactory. 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/ Head Office/ Factory :	173-B, New Industrial Estate, Road no. 6-G, Udyog Nagar, Udhna – 394 210, Gujarat, India
Tel. No.:	91-261-2677211 / 143 / 2679583
Fax No.:	91-261-2665757 / 2679319
E-Mail :	span@spandiag.com
Website :	http://www.span.co.in
Factory:	Plot No. 336, 338, 340, Road No. 3, GIDC, Sachin - 394 230, Surat, India.
Tel. No.:	91-261-239 7712 / 13 / 14 / 15
Fax No.:	91-261-239 7719
Regional Offices:	Mumbai 303, Town Center, Andheri Kurla Road, Near Mital Industrial, Andheri (East), Mumbai - 400 059. Tel. No.: 91-22-564 90232 Fax No.: 91-22-285 07773 Email : west@span.co.in Ghaziabad C-71, Shalimar Garden, Extension - II, Shahibabad, Ghaziabad - 201005. Tel. No.: 91-120-262 5078 TeleFax : 91-120-262 5241 Email : north@span.co.in Bangalore 23, Malikarjuna Swamy Temple Road, Nettakalappa Circle, Basavanagudi, Bangalore - 560 004. Tel. No. : 91-80-2662 0116 Telefax : 91-80-2662 1321 Email : south@span.co.in Kolkata Lake Town Complex, Shivam Appartment, Block D:: 862(986/1), Jessore Road, Kolkata - 700 055. Tel. No.: 91-33-25223304,55346886 Fax: 91-33-25223302 Email: east@span.co.in

DIRECTORS

Name :	Mrs. Lata P Desai
Designation :	Chairman
Name :	Mr. Pradip K Desai
Designation :	Whole Time Director
Name :	Mr. Veeral P Desai
Designation :	Managing Director
Name :	Mrs. Madhukanta T Patel
Designation :	Director (Technical)
Name :	Mrs. Sujata V Desai
Designation :	Executive Director
Name :	Mr. Praful R Gandhi
Designation :	Director
Name :	Mr. Sanjay N Mehta
Designation :	Director
Name :	Mr. Pranav S Desai
Designation :	Director
Name :	Mr. Sarvajna G Kazi
Designation :	Director
Name :	Mr. Sushil K Shah
Designation :	Director
Name :	Mr. Ramnik H Parekh
Designation :	Director
Name :	Mr. Shirish R. Mehta
Designation :	Director
Name :	Shayamal Ghosh
Designation :	Additional Director
Name:	Mr. S Sudaresean
Designation:	Additional Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters	948974	31.63%
NRI’S and OCB’S	678466	22.62%
Others ( Includes holding of Corporate Bodies )	1372660	45.75%
Total	3000100	100.00%

BUSINESS DETAILS

Line of Business :	Subject is engaged in manufacturing of diagnostic reagents, etc.
Products :	v Diagnostics Reagents v Diagnostics Products / Instruments & other Accessories v Becteriological Products

PRODUCTION STATUS

Particulars	Licensed Capacity	Installed Capacity	Annual Production
Diagnostics Reagents	400000 Liters	400000 Liters	371.679 Liters
Elisa Kit for Aids	120000 Liters	120000 Liters	748 Liters
Agglutinating Sera	15000 Liters	15000 Liters	2857 Liters
Becteriological Products	15000 Liters	15000 Liters	7934 Liters
Plastic Packing and diagnostics Accessories	35500 kg	35500 kg	23435 kg
Rapid Immuno Diagnostics tests	510 lac test	510 lac test	81.70 lac test

GENERAL INFORMATION

Suppliers :	v The Bombay Glass Blowing Industries v Shilp Art v Bharat Rubber Works v Amar Glass v Kishor Industries v Aakar India v Desai Traders v Everbright Corporation v Geet Pack Private Limited v Packwell Industries ( Valsad ) Private Limited v Lucent Packaging Private Limited v Shree Krishna Plastic v Shako Flexi Pack Private Limited v Techno Fab. v Siddhi Packaging v New mayur Plastic v Pushpak Gujarat Private Limited v Savai Printers Private Limited v Jalaram Packaging and trading v Kenonic Control and Engg v Kishore Pharma Products Private Limited v Shree Plastic v Shreeji Industries v True Pack Private limited v Tirupati Packaging v Tirupati Packaging industries v Top Tech Biomedicals
No. of Employees :	588
Bankers :	v State Bank of India, Specialised Commercial Branch, Kiran Chambers, Opp. J k Tower, Ring Road, Surat – 395 002 v ICICI Bank Limited, Shyam Chamber, Ring Road, Surat
Facilities :	SECURED LOANS a) From State Bank of India - (Secured by hypothecation of Current Assets, Machineries, Equitable Mortgage of Land & Building at Plot No.336,338,340- at Sachin, Plot No.173B- at Udhna, Surat Office premises at Kolkata and personal guarantees of promoter Directors), (due within one year Rs.0.375 Millions, Previous year Rs. 4.430 Millions) b) From I. C.I. C.I. Bank (Secured by first charge by way of hypothecation of movable properties procured under the PACT-CRH project (save and except book Debts)) (due within one year Rs. 1.533 Millions, Previous year Rs. 1.800 Millions ) c) From I.C.I. C.I. HFC Ltd. (Secured by Equitable Mortgage of Office Premises at Andheri, Mumbai) (due within one year Rs.2.928 Millions, Previous year Rs. 0.228 ) From State Bank of India a) Cash Credit / Export Packing Credit /Standby line of Credit Rs. 51.660 Millions b) Foreign Currency Loan – ICICI Bank Rs. 37.204 Millions (Secured by hypothecation of stocks of Raw Materials, Packing Materials, Work-in process, Finished Goods, Book Debts, Machineries and collaterally secured by the Personal guarantees of promoter Directors, equitable mortgage of immovable properties at Plot No.173B at Udhna and Plot No.336, 338,340 at Sachin, Surat. and office premises at Kolkata) UNSECURED LOANS Fixed Deposits (including Fixed Deposits from Directors Rs. 10.285 Millions. Previous year Rs.8.585 Millions ) (due within one year Rs.5.555 Millions, Previous year Rs.15.714 Millions) Interest accrued on Fixed Deposits Rs. 0.814 Millions Deposits from Stockists Rs. 12.666 Millions Loan from - Standard Chartered Bank (Guaranteed by Directors) (due within one year Rs.30.000 Millions ) Car loans from a Scheduled Bank (Guaranteed by Directors and Company as a co-obligant) (due within one year Rs. 0.185 Millions Previous year Rs.0.530 Millions )

Banking Relations :	Satisfactory
Auditors :
Name :	M/s Y. B. Desai & Associates Chartered Accountants, Surat
Associates/Subsidiaries :	v Span Finstock Private Limited v Quest Biochemicals Private Limited v Span Diagnostics SARL v Span Diagnostics FZC

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	RS. 10/- each	RS. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000100	Equity Shares	Rs. 10/- each	Rs. 30.001 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		30.001	30.000	30.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		102.385	87.900	71.300
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		132.386	117.900	101.300
LOAN FUNDS
1] Secured Loans		93.701	87.500	89.700
2] Unsecured Loans		82.226	49.800	41.200
TOTAL BORROWING		175.927	137.300	130.900
DEFERRED TAX LIABILITIES		10.474	0.000	0.000
TOTAL		318.787	255.200	232.200
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		136.897	116.700	109.200
Capital work-in-progress		16.615	5.600	9.800
INVESTMENT		3.581	0.500	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	137.600	103.200	137.600
	Sundry Debtors	95.600	89.000	95.600
	Cash & Bank Balances	14.300	18.200	14.300
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	14.200	13.300	14.200
Total Current Assets		328.855	261.700	223.700
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	130.400	107.000	130.400
	Provisions	0.100	5.100	0.100
Total Current Liabilities		168.165	130.500	112.100
Net Current Assets		160.690	131.200	111.600
MISCELLANEOUS EXPENSES		1.004	1.200	1.600
TOTAL		318.787	255.200	232.200

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		546.122	466.701	408.400
Other Income		9.055	7.443	0.000
Total Income		555.177	474.144	408.400
Profit/(Loss) Before Tax		34.570	26.078	22.000
Provision for Taxation		13.132	9.387	7.200
Profit/(Loss) After Tax		21.438	16.691	14.800
Earnings in Foreign Currency :
	Export Earnings ( Calculated on F.O.B. basis )	41.021	N A	22.179
Total Earnings		41.021	22.179
Imports ( Calculated on CIF basis ):
	Raw Materials	72.548	N A	53.293
	Capital Goods	1.767	N A	0.234
	Others	0.587	N A	0.006
Total Imports		74.902	53.533
Expenditures :
	Manufacturing Expenses	204.484	N A	179.692
	Raw Material Consumed	274.904	N A	246.475
	Increase/(Decrease) in Finished Goods	9.481	N A	26.969
	Interest	17.381	N A	17.459
	Depreciation & Amortization	11.079	N A	11.009
	Other Expenditure	22.239	365.100	20.399
Total Expenditure		539.568	502.003	365.100

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2007 1 Quarter	30.09.2007 2 Quarter
Type
Sales Turnover	182.000	140.900
Other Income	08.400	01.500
Total Income	190.400	142.400
Total Expenditure	152.100	121.100
Operating Profit	38.300	21.300
Interest	09.000	05.800
Gross Profit	29.300	15.500
Depreciation	03.400	03.300
Tax	09.300	03.900
Reported PAT	16.600	08.100

KEY RATIOS

PARTICULARS	31.03.2005	31.03.2007	31.03.2006
Debt-Equity Ratio	1.29	1.25	1.22
Long Term Debt-Equity Ratio	0.72	0.59	0.55
Current Ratio	1.35	1.24	1.24
TURNOVER RATIOS
Fixed Assets	2.56	2.62	2.54
Inventory	3.82	3.64	3.88
Debtors	5.14	5.07	5.06
Interest Cover Ratio	2.69	2.99	2.50
Operating Profit Margin (%)	10.78	11.54	11.66
Profit Before Interest and Tax Margin (%)	8.72	9.51	9.31
Cash Profit Margin (%)	5.75	5.96	5.93
Adjusted Net Profit Margin (%)	3.69	3.93	3.57
Return On Capital Employed (%)	16.11	18.53	17.96
Return On Net Worth (%)	15.53	17.18	15.24

LOCAL AGENCY FURTHER INFORMATION

DIRECTOR’S REPORT:

MANAGEMENT DISCUSSION AND ANALYSIS

a) OPERATIONS

The sales and other income for the financial year under review were Rs. 555.178 Millions against Rs.474.145 Millions in previous year registering a growth of about 17.09%. The turnover of manufactured diagnostic products have increased by 21.04% and growth of traded products is of about 10.30%. The profit aftertax amounted to Rs.21.438 Millions as against of Rs.16.692 Millions in previous year resulting increased by 28.43%, inspite of that margins were under pressure due to increased global competition change in product mix, low cost generics and significant changes in the market dynamics. During the year, They received an overwhelming response from various government organizations and NGOs for various products and They expect the same to continue in the coming year. Due to that it was imperative to increase production capacity and automation of manufacturing operation; This will certainly improve the delivery commitments and overall efficiency. In this year company added one more feather in its cap by successfully implementing ISO 13485:2003, an international standard specific for medical devices, and got accreditation for the same. Company continues to practice quality management system ISO 9001:2000 along with the implementation of Good Manufacturing Practices - (GMP) compliance as per 'WHO" guidelines. Most of their products are CE registered, a mandatory requirement for marketing in Europe, It gives immense confidence to their customers and encourage them to use their products more, which are manufactured by sincere implementation of various quality management systems approved by independent accrediting agencies.

R&D continues to be the most important and focused activity this year too. Company has successfully launched four new products during the year and is working on eight new products which will be launched during next financial year. Span is well known for its R&D initiatives in reagent segment and has been successful in bringing many products in Indian, market over the year, Span has taken yet another initiative this year to strengthen its market share in overall diagnostic market, by forming a new subsidiary company specially for R&D of instruments. They are confident that in coming years, this effort will bring lot of rewards and help Span in consolidating its position in the in-vitro diagnostic (IVD) market.

SWOT ANALYSIS

Strength

v Span, very respected name in industry with more than 3 decades of presence

v Excellent goodwill in the market

v Widest and most comprehensive range of product

v Very good penetration in the market in terms of size of dealer network and field staff

v Dedicated diagnostics company with state-of-the-art manufacturing facility

v Good International reputation

Weakness

v Less aggressive in offering reagent rental options due to financial limitation

v No own manufactured instruments

Opportunities

v Growing Market

v Life style related diseases / infectious diseases are increasing in I ndia

v Tremendous opportunities on horizon in Molecular Diagnostics

v Market for specialized tests are increasing due to

v Insurance sector expanding

v Increasing Medical tourism

v Contract research and Diagnostics service outsourcing

Threats

v Ever increasing competition

v Many multinational companies setting up their operations in India

v IPR puts restriction in identifying R&D projects

v Corporatisation of big laboratories

OUTLOOK

IVD business is growing rapidly, thanks to various factors like increasing awareness about health care, growing income level with rapidly expanding higher middle class segment, a number of emerging opportunities like medical tourism, contract research and deeper penetration of medical insurance, On the other hand, the competition is increasing rapidly due to very open economy with limited entry barrier. More and more companies are now importing products and offering to customers at much faster pace than ever before. Span has already taken initiative and took ample steps to strengthen R&D and new product delivery commitment. As India is gaining more and more attention due to its higher economy growth, more opportunities will be created by expansion of available market size and bringing newer technologies and product portfolio for high growth market by MNCs. Span is in favorable position to gain from this due to its wide experience, unparallel manufacturing capabilities, enviable distribution channel and image of trusted partner in diagnostic market. Span is considered as most promising and natural choice over other competitors in India.

Assuming their role of a major Indian diagnostic manufacturer, They will continue consolidating their position by building marketing strength every year without compromising company's philosophy of indigenization of products and technology and by which offering various diagnostic products at affordable price to Indian market. They are going step-by-step in a structured manner towards building a global company, which will hold key to success in future and ensure higher returns for investors.

HISTORY

Subject was incorporated on 31^st March 1980 at Udhna in Gujarat having Company Registration Number 3710.

Subject was incorporated as private limited company and converted into a public limited company on 14^th August 1993, Promoted by Dr. P. K. Desai. The company is engaged in manufacturing a wide range of microbiological, immunological and bio-chemical diagnostic reagents, plastic accessories and allied products in its plant at Udhna.

Business:

Subject is engaged in manufacturing of Pharmaceuticals, Medicinal Chemicals & Botanical products.

Generic Names of the Products of the Company are:

v Diagnostics Reagents

v Diagnostics Products / Instruments & other Accessories

v Becteriological Products

The company has been awarded Good Manufacture Practices (GMP) compliance as per ‘W H O’ guidelines. The company also received ‘ISO 9002’ Certificate for successfully implementing the Quality Management System in its manufacturing and distribution operations. As a result of above certifications, the company is confident to enhance its performance in domestic as well as international markets in future.

The company completed expansion-cum-modernisation and mechanisation of packing activities at Udhna. Acquiring three plots of land at GIDC Sachin admeasuring 33,897 sq. mtrs. which is situated near the State Highway and National Highway No.8. This project was finance by way of internal accruals of Rs. 3.162 millions and balance from Term Loans of Rs. 3.000 millions.

The company entered into the technical arrangement with Bioprobe The Netherland, Path United States of America, Dynajen United States of America for manufacturing HIV Dipsticks, Myco-dot, Monoclonal anitbodies.

The products developed by the company are:

v Malaria IC Test (device)

v Hepatitis C (HCV) Flow through test

v HIV 1+2 Elisa (Improved ENZAIDS)

v HbsAg Elisa (Improved Microscreen)

v Liquid Stable Enzymatic Glucose Kit

The company plans to develop products like:

v HCV ELISA

v Clinical Chemistry Control (Lyophilized)

v HbsAg dipstick

v Spectrophotometer Q.A. test kit

v Anti HIV 1+2 Flow through test

v Immunohistology antibodies

v Syphilis Flow through test

v Test kits for typhoid and tuberculosis

Company launched several new products developed by its R & D Centre such as One Step Lateral Chromotography Based Assay for monitoring of pregnancy and Hepatitis to be marketed under the brand name of CRYSTAL as well as HIV Flow Through. The continuation distributorship arrangements with Murex Biotech United Kingdom Limited, which is now subsidiary of Abbott Diagnostics United States of America will be generate substantial business from the nitche market of the Blood Bank Segment.

Website Details Attached

About Them:

A thought, conceived more than three decades ago by a Pathologist Dr. Pradip K. Desai evolved into a start-up company in 1972, as the Desai Laboratories. The goal was to indigenously develop and manufacture a comprehensive range of ready-made diagnostic reagents needed by clinical pathology laboratories. In 1976, the company was reorganized as SPAN DIAGNOSTICS with an emphasis on in-house R & D to develop more and more products, keeping the customer needs in focus and quality under constant vigil.

The initial efforts yielded success and SPAN became a private limited company in 1981.The company went public in 1994,to bring in more resources and expand further. Concurrently, Span Diagnostics Ltd. with a strengthened marketing & distribution network,emerged as a leader in Indian diagnostic market.

Today, a legendary name in the industry,is reckoned for its wide range of quality products and dedicated services under the purview of ISO 13485:2003 & ISO 9001:2000.The company operates through strategic marketing divisions,ensuring focused approach to specific customer segments.

Subject has nurtured its growth by consistently adding new products through R & D endeavors. The products are manufactured at its state-of-the-art plants in India and France,observing WHO-cGMP norms.

Subject also takes pride in having exclusive strategic business alliances with the leading diagnostic companies from world over, to market their products in India.

Global Alliances:

v Remel Inc., USA

v Hitachi Chemical Diagnostics Inc., USA

v BBI Biomedica Inc., USA

v General Biometrics Inc., USA

v Awareness Technology Inc., USA

v Nihon Kohden Corporation, Japan

v Allmedicus, Korea

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 :

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. 39.83
UK Pound	1	Rs. 81.75
Euro	1	Rs. 57.54

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		54

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.	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