MIRA INFORM REPORT

Report Date :

12.11.2007

IDENTIFICATION DETAILS

Name :	SOUTH ASIAN PETROCHEM LIMITED
Registered Office :	Dhunseri House, 2^nd Floor, 4A, Woodburn Park, Kolkata – 700 020, West Bengal
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	05.06.1996
Com. Reg. No.:	79932
CIN No.: [Company Identification No.]	L51496WB1996PLC079932
TAN No.: [Tax Deduction & Collection Account No.]	CALS07606E
Legal Form :	Subject is a public limited liability company. The shares of the company are listed on the stock exchanges.
Line of Business :	Manufacturing and Processing of Tea.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 11017600
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having fine track. Fundamentals are strong and healthy. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings.

LOCATIONS

Registered Office :	Dhunseri House, 2^nd Floor, 4A, Woodburn Park, Kolkata – 700 020, West Bengal, India
Tel. No.:	91-33-22801950
Fax No.:	91-33-22801956
E-Mail :	dtil@vsnl.com aspet@cal2.vsnl.net.in saplhld@sancharnet.in
Plant	JL-126, Mouza-Basudevpur, Haldia, District Midnapur [East]-721602, West Bengal
Tel. No.:	91-3224-275947/48
Fax No.:	91-3224-273740
E-Mail :	saplhld@sancharnet.in

DIRECTORS

Name :	Mr. Pradip Kumar Khaitan
Designation :	Chairman
Name :	Mr. Chandra Kumar Dhanuka
Designation :	Vice Chairman
Name :	Mr. C. P. Philip
Designation :	Director (Nominee of IDBI)
Name :	Mr. T. K. Ray
Designation :	Director (Nominee of IFCI)
Name :	Mr. Gopal Krishna
Designation :	Director (Nominee of WBIDC)
Name :	Mr. Shankar Lal Dhanuka
Designation :	Director
Name :	Mr. Joginder Pal Kundra
Designation :	Director
Name :	Mr. H. P. Breitenbach
Designation :	Director
Name :	Dr. S. Kapur
Designation :	Director
Name :	Mr. Yver F. Lombard
Designation :	Director
Name :	Mr. P. Murari
Designation :	Director
Name :	Mr. Deepak Atal
Designation :	Executive Director
Address :	Rossell Industries Limited – Managing Director
Date of Birth/Age :	35 Years
Qualification :	B.Com
Name :	Mr. Biswanath Chattopadyay
Designation :	Executive Director [Technical]
Date of Birth / Age	49 Years
Qualification :	B Tech (Chemical )
Experience :	26 Years
Name :	Mr. H. P. Breitenbach
Designation :	Director
Name :	Dr. B. Sen
Designation :	Additional Director
Name :	Mr. Mrigank Dhanuka
Designation :	Executive Director
Address :
Date of Birth/Age :	26 Years
Qualification :	B.Com
Experience :	6 Years
Date of Appointment :
Name :	Mr. Brijesh kumar Biyani
Designation :	Executive Director (Corporate)
Address :
Date of Birth/Age :	55 Years
Qualification :	B. Tech (H) in Chemical engineering from IIT, Post Graduate Diploma in Industrial Engineering
Experience :	29 Years

KEY EXECUTIVES

Name :	Mr. R. K. Sharma
Designation :	A. V. P. (Finance) & Company
Name :	Mr. R. K. Dalmia
Designation :	Vice President (Finance)
Name :	Mr. Priya Ranjan Ghosh
Designation :	Deputy Company Secretary and Compliance Officer
Address :	Dhunseri House, 2^nd Floor, 4A, Woodburn Park, Kolkata – 700 020, West Bengal, India
Tel No.:	91-33-22836128
Fax No.:	91-33-22801956
Email :	aspet@cal2.vsnl.net.in

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Shareholding of Promoter and Promoter Group
Indian
Individuals/ Hindu Undivided Family	400	0.00
Central Government/ State Government(s)	---	---
Bodies Corporate	86047607	45.06
Foreign
Bodies Corporate	22302493	11.68
Public shareholding
Institutions
Mutual Funds/ UTI
Financial Institutions / Banks	26398151	13.82
Insurance Companies	25425404	13.32
Non-institutions
Bodies Corporate	9069650	4.75
Individuals (non resident individuals / foreign individuals )	403072	0.21
Individuals -i. Individual shareholders holding nominal share capital up to Rs 0.100 Millions	12750276	6.68
ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100 Millions	8548722	4.48
Clearing Member
Total	190945775	100 %

BUSINESS DETAILS

Line of Business :

Manufacturing and Processing of Tea.

Products :

Item Code No.	390760 00
Product Description	Polyethylene Terepthalate

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
PET Resin (in MT)			180,000	168,950.24

Note :

Licensed Capacity is not applicable. Installed Capacity is as certified by the executive director and CEo, being a technical matter.

Production Includes : 773.87 MT (Previous year 791.00 MT) of Lumps waste generated in the process of manufacturing

GENERAL INFORMATION

No. of Employees :

350

Bankers :

Y Bank of Baroda

Y Bank of India

Y Canara Bank

Y Punjab National Bank

Y UCO Bank

Y Union Bank of India

Y United Bank of India

Facilities :

Secured Loan	31.03.2007 (Rs. in Millions)
Term Loan
From Financial Institutions
In Foreign Currency	840.018
From Bank
In Foreign Currency	1248.425
Working Capital
From Banks	1212.549
Car Loan
From Bank	9.646

1. Secured by joint mortage on pari pasu first charge basis for all term lenders and on pari pasu second charge basis for all working capital bankers, by deposit of title deeds with IDBI trustship services Limited (ITSL), in respect of all the immovable properties, of the company situated at JL – 126 Mouza Basevpur, P.S. Sutahata, HAldia, Distric Mindpore (East) in the state of West Bengal together with all the building and structures thereon including fixed plant and machinery and fixture and fitting permanently fastened to the earth or fastened to anything attached to the earth.
2. Pledge of shares in the company held by group companies
3. Secured by personal guarantee of two of the promoter directors of the company.
4. First charge by way of hypothecation ranking pari pasu over all present and future inventories, consumables, stores and spares, book-debts and all other moveable for all working capital bankers and second charge on the same for all term lenders.
5. Bills discounted with banks are secured by demand / usance bill drawn on buyers bank.
6. Auto loans are secured by hypothecation of respective vehicles.

Banking Relations :	Good
Auditors :
Name :	Lodha and Company Chartered Accountants
Associates :	Jaipur Polyspin Limited Trimplex Investments Limited Dhunseri Tea & Industries Limited Mint Investments Limited Plenty Valley Intra Limited Tezpore Tea Company Limited South Asian Petrochemicals Limited Mayfair India Limited Naga Dhunseri Group Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
193000000	Equity Shares	Rs.10/- Each	Rs.1930.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
190945775	Equity Shares	Rs.10/- Each	Rs.1909.458 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		1909.500	1909.500	1900.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		844.900	398.000	190.200
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2754.400	2307.500	2090.200
LOAN FUNDS
1] Secured Loans		3310.600	4136.500	3519.300
2] Unsecured Loans		0.000	0.000	15.000
TOTAL BORROWING		3310.600	4136.500	3534.300
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		6065.000	6444.000	5624.500
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3468.700	3677.200	3778.800
Capital work-in-progress		60.400	46.400	28.600
INVESTMENT		45.900	42.800	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1125.300	955.700	818.700
	Sundry Debtors	1355.500	1972.100	1089.300
	Cash & Bank Balances	1038.200	825.100	846.500
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2079.100	829.900	656.000
Total Current Assets		5598.100	4582.800	3410.500
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	3123.000	1934.600	1640.800
	Provisions	5.500	5.500	2.000
Total Current Liabilities		3128.500	1940.100	1642.800
Net Current Assets		2469.600	2642.700	1767.700
MISCELLANEOUS EXPENSES		20.400	34.900	49.400
TOTAL		6065.000	6444.000	5624.500

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		10656.900	9809.300	8331.100
Other Income		52.100	44.000	103.600
Total Income		10709.000	9853.300	8434.700
Profit/(Loss) Before Tax		518.100	240.900	188.600
Provision for Taxation		71.200	38.600	5.300
Profit/(Loss) After Tax		446.900	202.300	183.300
Export Value		6453.377	5307.635	N.A.
Imports :
	Raw Materials	3836.387	3064.476
	Stores & Spares	16.588	12.486
	Capital Goods	45.554	31.729
	Others	0.000	0.000
Total Imports		3898.529	3108.691	N.A.
Expenditures :
	Manufacturing Expenses	103.400	90.400	78.200
	Administrative Expenses	764.400	735.200	532.900
	Raw Material Consumed	7983.900	7036.300	6667.000
	Salaries, Wages, Bonus, etc.	51.900	53.400	43.500
	Excise Duty	446.400	589.000	424.800
	Interest	314.100	323.800	264.800
	Power & Fuel	322.100	250.600	163.500
	Depreciation & Amortization	226.100	223.900	221.200
	Other Expenditure	0.000	0.000	0.000
Total Expenditure		10212.300	9302.600	8395.900

QUARTERLY RESULTS

PARTICULARS	30.06.2007	30.09.2007
Type	1^st Quarter	2^nd Quarter
Sales Turnover	2647.800	2331.700
Other Income	206.700	97.000
Total Income	2854.500	2428.700
Total Expenditure	2354.300	2116.300
Operating Profit	500.200	312.400
Interest	52.900	57.100
Gross Profit	447.300	255.300
Depreciation	59.800	57.200
Tax	44.500	24.400
Reported PAT	343.000	173.700

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt- Equity Ratio	1.47	1.74	1.65
Long-Term Debt-Equity Ratio	0.92	1.17	1.26
Current Ratio	1.29	1.31	1.27
TURNOVER RATIO
Fixed Assets	2.50	2.34	2.03
Inventory	10.24	11.06	9.98
Debtors	6.41	6.41	9.98
Interest Cover Ratio	2.65	1.74	1.71
Operating Profit Margin (%)	9.93	8.04	8.10
Profit Before Interest and Tax Margin (%)	7.81	5.76	5.44
Cash Profit Margin (%)	6.32	4.34	4.86
Adjusted Net Profit Margin (%)	40.19	2.06	2.20
Return On Capital Employed (%)	13.36	4.42	8.66
Return on Net Worth (%)	17.66	9.20	9.17

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Subject was incorporated on 5^th June 1996 at Kolkata in West Bengal having Company Registration Number 79932.

Subject was promoted by Dhunseri Group, as a diversification plan from its existing business of tea production and processing and also manufacture of synthetic blended yarns.

Subject is setting up a new project for manufacture of bottle grade PET resins having a capacity of 140000 TPA. Production is expected to start from 2002.

PET resins are used mainly in the packaging industries (about 90% of the total demand). Its others uses are in the industrial sectors like automobiles, building insulation, pipe insulation, coating for washable, etc.

The project is being set up in technical-cum-financial collaboration with Zimmer AG of Germany. Besides the technical know-how and execution of EPC contract, Zimmer AG has subscribed to the equity capital/FCDs of the company to theextent of DM 6 million.

To finance the above project, the company is coming out with a public issued of 5000000 of Rs.10/- each aggregating to Rs. 50.000 millions and 6950000 14% Fully Convertible Debentures of Rs.100/- each aggregating to Rs. 695.000 millions.

The company has entered into Agreement with two reputed trading houses viz. HelmAG, Germany and Polytrade GmbH, Germany for marketing its products at prevailing international prices. The company will directly cater to domestic market and sale of Coke and Pepsi [two largest consumer of PET in the World].

The company will slowly focus on the domestic market and take advantage of the buoyant domestic demand as it is expected to materialise post commencement of the project.

BUSINESS

Subject is engaged in manufacturing and processing of Tea.

Subject is also engaged in manufacturing of Synthetic Blended Yarns.

Prospects

In view of product approvals already received setting up and expanding the distribution network in India. Utilization rates in 2004 are expected to average around 83% on a global basis. The Asian PET industry is faced with a challenging situation as capacity growth in the region exceeds present demand.

Developments such as enlargement of Europe bringing 10 more countries under the European Union, as well as the threat of initiation of anti-dumping and countervailing duties in the United States would put pressure on maintaining growth volumes in the medium term. On the positive side is the encouraging growth of end use applications resulting in healthy growth of the PET industry.

The future profitability will largely depend on the global economic outlook, demand supply scenario, volatility in raw material prices. In the year 2003-04, the margins in PET industry has been low compared to the previous boom phase. 

Marketing Plan

The company had entered into marketing arrangements with two reputed German trading houses viz. Helm AG and Polytrade GmbH. These agreements had been done some years ago and since then market conditions have undergone changes and production and consumption has increased substantially. In order to fully tap the potential in every market, the company has appointed more distributors in areas, which would enhance the depth of distribution. The company’s own marketing personnel have extensively visited key markets to establish direct customer relations. Sampling of product for approval of various health and statutory authorities has been initiated and sales have now commenced during the trial run period.

In packaging industry, PET resins are used as alternative medium for packaging of food, pharmaceuticals, toiletries and detergents, pesticides, marine products, cereals and spices, lube oils, edible oils, mineral water, health drinks, milk and milk products, tea & coffee, etc. replacing materials such as glass, PVC, PE / PP, metals, etc.

The company’s fixed assets of important value includes leasehold land, freehold land, non factory buildings, plant & machinery, furniture & fixtures and motor car.

Performance

The year-on-year increase in profits by more than 120% reflects the Company's business excellence, reinforced by a complement of forward-looking initiatives. While The Company continues to provide globally benchmarked innovative packaging solutions, it also caters to discerning consumers across the globe. This is a matter of satisfaction for all of us.

The Company's turnover in the international market has enhanced from Rs.5870.800 millions to Rs. 6915.000 millions. With an enhanced focus on the export market to leverage emerging global opportunities, the Company's domestic turnover declined from Rs. 3361.000 millions in the previous year to Rs.3271.600 millions in 2006-07 despite a deeper market penetration. Capacity constraints hindered the Company's growth in the domestic sector 

ISO 9001:2000 accreditation: 

During the year, the Company's plant in Haldia was accredited with the DIN EN ISO 9001:2000 certification by TUV CERT (certification body), reflecting the Company's globally benchmarked quality standards, coupled with a rich pool of dedicated employees. 

 Overseas venture: 

To leverage the emerging global demand growth for PET and to remain competitive especially in view of the global capacity expansions, The Company proposes to set up a manufacturing plant (3,15,000 TPA capacity) in the United Arab Republic of Egypt (referred to as Egypt). The new manufacturing facility is proposed to be set up by way of incorporating a subsidiary of the Company in Egypt with equity participation by Egyptian Petrochemicals Holding Company (ECHEM), a nodal agency for the development of the petrochemicals industry in that country.

ECHEM is a special-purpose entity for the petrochemicals industry, managing and supervising the development of the Egyptian petrochemicals industry, which involves necessary automation for carrying out the petrochemical master plan, following up implementation and formulating projects to promote investment in the Egyptian petroleum industry. ECHEM provides an array of services to its subsidiaries and investors to promote the industry by attracting anchor investors. ECHEM is controlled by the Ministry of Petroleum, Government of Egypt.

The estimated project completion time is 21 months from the date of commencement and the total estimated project cost is around USD 100 million, funded by a mix of equity and debt.

Outlook: 
 Positive trends are indicators of a profitable future. However, profitability has a cost and The Directors would like to share with you their concerns regarding profits in economies in a diverse socio-political environment. While servicing remains a premier ingredient, competition from fellow manufacturers requires a healthy understanding in a manner that contributes to the positive reflection of the Company.

PET, the product of The Company, is the choice of the current milieu. Its utilities and advantages need not be repeated but what needs a recitation is definitely the benefits that have accrued to the user at large. Simply speaking, PET has made it possible in a world where people are not just mobile but also functionally agile. PET products have integrated themselves to the style and emotion of the user. The Company looks forward to greater reach and significant holding of hands with newer consumers in the years to come. 

Fixed Assets

• Leasehold Land
• Freehold Land
• Non Factory building
• Factory Building
• Plant and Machinery
• Furniture and Fixture
• Motor Vehicle
• Technical Knowhow
• Computer Software

Web Details Attached

The Company (known as SAPL), is the newest venture of the Dhunseri Group promoted by the Dhanukas of Kolkata.

It is the dynamic business wisdom and strategic growth strategy of the
Dhanukas that helped in building the Dhunseri Group from a single company owning a single garden to a Tea empire with fourteen prime gardens. The group then diversified into Synthetic Yarns. The Group's newest venture today brings to the international markets the finest Bottle Grade PET Resin, ASPET, for packaging of drinking water, carbonated soft drinks, edible oil, pharmaceuticals etc.

SAPL an export-oriented unit has set up a Bottle Grade PET Resin continuous process plant at Haldia, the strategically located port city of West Bengal, India. The 140,000 TPA plant is amongst the largest and the most modern in the region.

SAPL offers the latest single stage PET manufacturing technology, to efficiently produce innovative & high quality packaging solutions for customers. The group strongly believes customer satisfaction to be the key to its success. Through quality, technological service and partnership, SAPL pursues a fair and reasonable path to grow.

The Dhunseri Group built its reputation for professional management in the tea business under the leadership of Late Mr. S.L. Dhanuka and Mr. C. K. Dhanuka. Dhunseri Tea & Industries Limited, the flagship company of the group, manufactures and markets the finest tea since 1916. Originally operating three tea gardens, the company has acquired prime gardens in Assam after being taken over by the Dhanuka family in 1955.

Tezpore Tea Company Limited is the Group's second premier company in tea business. It owns gardens in Assam and West Bengal.

The group companies together own 14 tea estates covering a total area of 14841 acres with plantation on 9285 acres. They employ a workforce of ten thousand to produce 12.5 million Kg per annum of quality tea.

All through these years of growth, the group has never considered themselves to be simply manufacturers or sellers. It has consciously tried to evoke a relationship business. The focus of the group has been on its valued customers and the Dhunseri Group has reaped the rewards of this philosophy.

PET is the acronym for Polyethylene Terephthalate, a plastic polymer produced out of PTA and MEG, along with certain catalysts. The world's leading food and beverage industries have adapted to PET to meet their packaging needs.
Recyclable, clear, strong, lightweight, easily mouldable to even complex shapes are the added features of PET, which ASPET assures. PET is also widely used for packaging mineral water,carbonated soft drinks, edible oil, cosmetics and toiletries etc.New areas of development include beer, milk & hot filled drinks like isotonic drinks and juices.

Quality is hence of the foremost importance to the product because of the nature of
the applications.

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.39.39
UK Pound	1	Rs.81.31
Euro	1	Rs.57.44

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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	YES
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

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