MIRA INFORM REPORT

Report Date :

12.11.2007

IDENTIFICATION DETAILS

Name :	PEARL ENGINEERING POLYMERS LIMITED
Registered Office :	D-17, MIDC Industrial Area, Kurkumbh, Taluka Daund, Pune District - 413 801, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	14.07.1992
Com. Reg. No.:	012701
CIN No.: [Company Identification No.]	L25209PN1992PLC012701
Legal Form :	Subject is a public limited liability company. The company's shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing and Selling of polyethylene terephthalate (PET) bottles, containers, jars, caps/closures and consumer products.

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 1473812
Status :	Moderate
Payment Behaviour :	Slow but delayed
Litigation :	Clear
Comments :	Financial position of the company is poor having substantial accumulated losses. Profit margin is limited. Trade relations are fair. Payments are reported as slow and delayed. The company can be considered for any business dealings on safe and secured trade terms and conditions only.

LOCATIONS

Registered Office :	D-17, MIDC Industrial Area, Kurkumbh, Taluka Daund, Pune District - 413 801, Maharashtra, India
Tel. No.:	91-2117-235247/91/92
Fax No.:	91-2117-235248
E-Mail :	info@pearlpolymers.com
Website :	http://www.pearlpolymers.com
Corporate Office :	703-704, Rohit House, 3 Tolstoy Marg, Cannaught Place, New Delhi – 110001
Tel. No.:	91-11-43517917
Fax No.:	91-11-43517596
E-Mail :	pearl@pearlpet.net / investor_helpdesk@pearlpet.net
Corporate Office :	B-59, Greater Kailash Part-l,New Delhi-110048
Tel. No.:	91-51417917-21
Fax No.:	91-51417596
E-Mail :	pearl@pearlpet.net
Factory 1 :	Plot 2A, Sector 18, HSIDC Industrial Area, Gurgaon, Haryana - 122016
Tel. No.:	91-124-2345890-91
Fax No.:	91-124-5010191
E-Mail :	pearl_gurgaon@pearlpet.net
Factory 2 :	B-3/2, Midc Indl. Area Distt. Raigarh Mahad - 402 309
Tel. No.:	91-02145-232069-71/ 232507
Fax No.:	91-02145-232068
Factory 3 :	13-A, Part - I, Jigani Indl. Area Anekal Taluk Bangalore - 562106
Tel. No.:	91-080-7825326 / 7825577
Fax No.:	91-080-7825579
Branches :	Mumbai, Maharashtra Bangalore , Karnataka Kolkatta , West Bengal Lucknow Gurgaon, Haryana

SOLE PROPRIETOR/PARTNERS/DIRECTORS

Name :	Mr. Chand Seth
Designation :	Chairman & Managing Director
Date of Birth/Age :	59 Years
Qualification :	B. Tech (Mech.) MS, USA
Experience :	33 Years
Date of Appointment :	07.12.1992
Name :	Mr. Harish Seth
Designation :	Managing Director
Name :	Mr. Arun Gupta
Designation :	Wholetime Director
Age:	55 years
Qualification:	B. Com, FCA
Experience:	31 years
Last Employment:	Chief Executive Project & Planning Pearl Polymers Limited
Date of Appointment :	12.10.1993
Name :	Mr. Dinesh Chand Kothari
Designation :	Director
Name :	Mr. C. R. Dua
Designation :	Director
Name :	Mr. B. B. Mathur
Designation :	Director
Name :	Mr. Ashok Khanna
Designation :	Director
Name :	Mr. Ramesh M. Bhujang
Designation :	Nominee (AFIC)
Name :	Mr. Kishen Seth
Designation :	Director

KEY EXECUTIVES

Name :	Mr. C.S. Monika Uppal
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters' holdings	12786880	42.04
NRIs / OCBs Foreign Companies	864073	2.84
Mutual Funds, Banks, Financial Institutions	3039480	10.00
Bodies Corporate	4768151	15.68
Public	8902976	29.27
TOTAL	30,412,560	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of polyethylene terephthalate (PET) bottles, containers, jars, caps/closures and consumer products.

Products :

Products Description	ITC Code
Polyethylene Terephthalate Bottle Grade	3907600

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Polythelene Terephthalate Polyester Chips (PET) 2006 – 07	TPA	24840	24,101,73 M.T.

GENERAL INFORMATION

No. of Employees :

About 1800

Bankers :

State Bank of India

Facilities :

SECURED LOANS	31.03.2007 (Amount in Millions )
Loans from Scheduled Banks :-
Rupee Term Loans	76.156
Interest Accrued and Due	2.347
	78.503
Loans from Financial Institutions :-
Foreign Currency Loan	76.669
Interest Accrued and Due	7.589
	84.258
Other Loans (Secured against hypothecation of respective movable assets)	164.780
Repayable within one year	46.926
UNSECURED LOANS
From Financial Institution
Foreign Currency Loan	59.717
Inter Corporate Deposits	0.008
	59.725
Short Term
Inter Corporate Deposits	6.000
	65.725
Repayable within one year	6.000

Banking Relations :	Unknown
Auditors :	Price Waterhouse Chartered Accountants PW Centre, Saidulajab, Opposite D-Block, Saket, Mehrauli – Badarpur Road, New Delhi – 110 030
Associates :	· Amit Apartments Limited · Gama Investments Private Limited · Interstar Financial Services Limited · Pacific International Tours and Travels Limited · Pearl International Tours and Travels Limited · Pearl Polymers Limited · New Delhi Corporate Consultancy Services Private Limited · Pearl Global Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
42,000,000	Equity shares	Rs. 10/- each	Rs. 420.000 millions
800,000	Redeemable Preference Shares	Rs. 100/- each	Rs. 80.000 millions
	Total		Rs. 500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30,412,560	Equity shares	Rs. 10/- each	Rs. 304.126 millions
706,000	Redeemable Preference shares	Rs. 100 /- each	Rs. 70.600 millions
	Total		Rs. 374.726 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		374.726	374.726	374.726
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	35.785	64.863
4] (Accumulated Losses)		(6.273)	0.000	0.000
NETWORTH		368.453	410.511	439.589
LOAN FUNDS
1] Secured Loans		164.780	176.070	191.882
2] Unsecured Loans		65.725	76.131	63.758
TOTAL BORROWING		230.505	252.201	255.640
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		598.958	662.712	695.229
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		398.235	444.182	485.231
Capital work-in-progress		0.002	0.079	0.000
INVESTMENT		17.521	17.521	0.021
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	89.550	72.754	70.260
	Sundry Debtors	91.002	104.436	100.881
	Cash & Bank Balances	4.322	4.483	13.969
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	57.434	82.937	72.415
Total Current Assets		242.308	264.610	257.525
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	(57.308)	(62.307)	50.535
	Provisions	(1.800)	(2.982)	3.043
Total Current Liabilities		(59.108)	(65.289)	53.578
Net Current Assets		183.200	199.321	203.947
MISCELLANEOUS EXPENSES		0.000	1.609	6.030
TOTAL		598.958	662.712	695.229

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		1525.522	1556.477	1580.148
Other Income		12.733	6.796
Total Income		1538.255	1563.273
Profit/(Loss) Before Tax		(40.895)	(29.742)	(23.088)
Provision for Taxation		(1.163)	(0.669)	--
Profit/(Loss) After Tax		(42.058)	(29.078)	(23.088)
Export Value		97.337	360.032	277.429
Imports :
	Raw Materials	29.035	18.517	----
	Stores & Spares	1.465	1.139	----
Total Imports		30.500	19.656	19.015
Expenditures :
	Cost of Goods Sold
	Manufacturing Expenses	1421.492	1408.391
	Administrative Expenses	59.506	78.157
	Financial Charges	28.309	26.391
	Excise Duty	(1.971)	0.910	1603.236
	Personnel	34.195	34.909
	Depreciation & Amortization	47.309	47.443
	Other Expenditure	1.609	4.421
Total Expenditure		1594.391	1600.622	1603.236

QUARTERLY RESULTS

PARTICULARS	30.06.2007	30.09.2007
Type	1^st Quarter	2^nd Quarter
Sales Turnover	421.600	448.600
Other Income	0.400	1.200
Total Income	422.000	449.800
Total Expenditure	397.700	436.000
Operating Profit	24.300	13.800
Interest	6.900	6.200
Gross Profit	17.400	7.600
Depreciation	11.400	11.200
Tax	0.300	0.100
Reported PAT	5.700	(3.700)

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	2.73	1.86	1.46
Net Profit Margin (PBT/Sales)	(%)	2.68	1.91	1.46
Return on Total Assets (PBT/Total Assets}	(%)	6.38	4.19	3.10
Return on Investment (ROI) (PBT/Networth)		0.11	0.07	0.05
Debt Equity Ratio (Total Liability/Networth)		(0.78)	(0.77)	0.70
Current Ratio (Current Asset/Current Liability)		(4.09)	(4.05)	4.80

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Pearl Engineering Polymers was incorporated in Jul.'92 as a public limited company at New Delhi. In 1995, it commissioned India's first integrated polycondensation and continuous solid polymerisation plant at Kurkumbh, near Pune, to produce high-molecular-weight polyester resins, with an installed capacity of 20,000 tpa. 

 The company produces PET resin, the main raw material for the manufacture of PET bottles and containers. PET resins are made from PTA/DMT and MEG as main input raw materials. The material is food-grade, non-reactive, non-toxic and glossy. It is also chemically resistant and environment-friendly, easily recyclable and does not generate noxious gases on combustion. It is having its plant in Pune, Maharashtra and its installed capacity is 24,840 TPA 

 Commercial prodution of PET Chips project commenced in Sep.'95. During 1996-97, the company has also increased its installed capacity of PET Chips to 20700 TPA.

 The company has filed the necessary reference with BIFR. A scheme of rehabilitation, involving fresh equity infusion and restructuring of principal.

 During the year 1999-2000, the BIFR asked the company to submit its revised rehabilitation proposal by January'2001, for its consideration.

Management Discussion and Development

Industry Structure and Development

The company is one of the manufacturer of Pet resins (bottle and film grade) and has a state of the art production facility at Kurkumbh, Pune in Maharashtras. The products produced by the company have wide applications in the packing industry.

Pet in non- carcinogenic, eco-friendly and insert which has established it as the polymers of the future in most packing applications, especially in food and beverage packing. It is widely used in packing of soft drinks, water, edible oil, food products, juices, dairy beverages, pharmaceuticals, toiletries etc. during the year the demand for Pet polymers was around 12.6 million tons.

Opportunity and Threats

New applications of Pet Resin continue to grow and the outlook remains positive in the next decade in Indian plastic industry the major growth drivers are bottled water, juices, edible oil, and carbonated soft drinks etc. Pet polymers demand has rapidly grown from around 3.0 million tons in 1995 to around 12.6 milliontons in 2006. at present the demand is growing by around 1 milliontons per annum.

Economic Scenario and Outlook

During the year 2006 – 2007, the rate of growth of the export market was 9 % as compared to 9.3 % in the year 2005-06. the global economy grew by a notable 4.8 % in 2006 despite concerns about tighter financial market conditions, high oil prices and inflation.

A key contributor to the positive growth trend has been the asia region which grew by 8.4 %, led by China and India which clocked the impressive 10.8 % and 9.2 % growth in their respective economies. A strong groeth in the middle east and CIS countries also contributed positively.

In the Indian economy, manufacturing is the main drive of growth, and this augurs well for the future. The growth rate in manufacturing has accelerated from 8.7 % in 2005 – 06 and futher to 11.3 percent three years, a growth rate of 9.6 percent and 11.2 percent respectively.

Discussion of Financial Performance with Respect to Operational Performance

During the year, the company had incurred net loss of Rs. 42.058 Millions as compared to net loss of Rs. 29.078 Millions in the previous year. The decline in profits was mainly on account of lower sales, higher raw material cost and increased finance charges.

During the year 2006 – 07 the company had achieved production of 24044 MT as compared to 26943.14 MT in the year 2005 -06. the production was lower by 10.7 % as compared to the previous year. The production was lower due to shut down taken by the company for annual maintaince annnnd also lower thru put mainly in the first few months.

Web Details Attached :

Realizing the potential of a food grade and recyclable polymer as versatile as PET (PolyEthylene Terephthalate), Pearl Polymers Limited successfully ventured in the field of manufacturing and exporting of all types of PET bottles, containers, jars etc using advanced Injection Stretch Blow Molding(ISBM) technology in 1984.

From one machine in 1984, they have grown to over 40 machines in three locations with new locations under construction. All their units are ISO 9001 certified and are undergoing HACCP (Hazardous Analysis and Critical Control Points) certification.

India's largest custom molded PET producer.

The worldwide preference of PET resin in manufacturing containers has opened a plethora of packaging options for almost all industries like pharmaceuticals, beverages, confectionery, personal care, liquor etc. They work with customers in these industries to create functional, attractive and cost-effective packaging to meet their needs.

An admirably high percentage of industrial acceptances, due to their consistent quality and dependable delivery schedules, have propelled us to grow to such heights. As their valued customers you can be sure that your most demanding product designs are expertly handled by their experienced and highly skilled product engineering team; that has complete product & process engineering capability.

They ensure transparency in all their business dealings and are guided by the following business values and philosophy:

Vision:

To carve out a niche for itself by pursuing business of manufacturing and exporting superior quality, innovative and reliable packaging solutions and satisfy their customers, equity stake holders, employees, business associates and society at large.

Strategy:

To pioneer in development of exclusive products; by using innovation & creativity at its best and emerge as an invincible leader by providing value added products and world class services.

Mission:

To meet the packaging and food storage needs of various industries and households alike

An ever lasting commitment for quality products

Their manufacturing process integrates the finest quality certified raw materials, with state-of-the-art equipment and stringent quality control procedures, at every station on the line. All manufacturing and warehousing is conducted in a hygienic and controlled environment. The PEARLPET brand is today looked as a mark of Quality.

A look at some of the quality initiatives at their end:

Product development cell:

It is equipped with state-of-the-art CAD facility to constantly upgrade & customizes the products. Their team constantly does research work and comes out with industry specific innovations that keep us ahead of competitors.

containers are thoroughly tested for:

• Weight
• Wall thickness at different points to ensure uniform distribution of the material
• Overall height, body diameter, neck dimensions to ensure that the product is as per product standards.
• Superior performance with the help of drop test, stack load resistance test, closure leakage etc. This is done under static and vibratory conditions.
• Top Load (resistance): This in turn is influenced by material distribution and container shapes. They ensure that their containers are capable of withstanding stacking loads (when empty) and also additional load that is imposed by filling the head or capping machine on the filling line.

CONFECTIONERY:

Confectionery packaging has reached new heights after the introduction of Pearlpet jars in this industry. Pearlpet has become the favorite means of packing due to the ease of handling, transparency, unbreakability and enhanced display of products. It is difficult to miss the jars at any local shopkeeper. Market leaders are well versed with all the advantages Pearlpet has to offer and the Pearlpet jars are used by leaders like Perfetti, Nestle, Cadbury’s, Nutrine, Parke-Davis, Parry’s, Candico etc to name a few.Confectionery packaging has reached new heights after the introduction of Pearlpet jars in this industry. Pearlpet has become the favorite means of packing due to the ease of handling, transparency, unbreakability and enhanced display of products. It is difficult to miss the jars at any local shopkeeper. Market leaders are well versed with all the advantages Pearlpet has to offer and the Pearlpet jars are used by leaders like Perfetti, Nestle, Cadbury’s, Nutrine, Parke-Davis, Parry’s, Candico etc to name a few.

CORBORATED SOFT DRINKS: 

This product category has seen a major shift from its traditional packaging to Pearlpet packaging. You think of any CSD and it is in PET. The base of Pet bottle has been given a Petaloid base to take the pressure filling of the product.

Pearlpet is a proud supplier to two of the dominating brands viz. Pepsi and Coke.

TEA:

India is one of the largest consumers of tea. The Indian consumer has a large range of brands to choose from and hence the packaging of the product plays a very large role in the same. Pearlpet has changed the perception of packaging by offering to the industry a medium that is truly world class. Pearlpet offers inherent properties such as transparency, odorless, 100% food grade, and recyclable, large variety of designs and sizes. The end consumer has the benefit of getting a reusable jar, which can be used for food storage, and this adds a lot of value to the tea that is packed within. Market leaders like Hindustan Levers, Nestle, Tata Tea all use the Pearlpet jars!!!!

Pearlpet has won the ‘World Star’ award from ‘World Packaging Organization’ for the Dance jar design (Available in four sizes) used by Hindustan Levers for their product.

EDIBLE OIL:

Edible oil has long been a favorite cooking medium in India. It was traditionally marketed in HDPE bottles or pouches until Pearlpet was introduced into this industry. Pearlpet stands out as the most convenient form of packaging offering attributes like transparency, unbreakability, 100% food grade, light weight and zero leakage. Due to its precise neck finish, Pearlpet products are also easy to fill on the automated filling lines.

Pearlpet is the proud winner of ‘World Star’ award from ‘World Packaging Organization’ for Dhara oil – 5 lt. pack size because of its features like – outstanding shelf appeal, easy to carry handle, convenient pour ability, strong bottle, and transparent.

PEARLPET has a large range of sizes and shapes for the oil industry.

HOME CARE:

Home care products like cleaning liquids have generally been deprived of good high-class packaging, as they were not directly used by the housewives but by the cleaning staff. But with the change in society, this area has also come into the world class of brand building and thus it is necessary to have a superior world packaging to go with the brand. Domex, the well-known floor cleaning liquid, is one of the firsts to encase on this and has become a household name now.

PESTICIDE:

Pesticide - a product that is useful for mankind in one way but hazardous if it comes in direct contact or is inhaled.

Pearlpet has worked jointly with many companies like Nocil, Zeneca etc. to get Pearlpet Agro PET bottles approved from Central Insecticide Board (CIB) for Cypermethrin 10% EC, Chloropyriphos, Deltamethrin, Lambdacyahalathrin to name a few. PET is very cost effective as compared to any other traditional packaging medium.

Quality

PEARLPET QUALITY

‘Quality that’s forever’, a commitment that we believe in. The commitment of exclusivity and unmatched standards.

For which we have earned the prestigious ISO – 9001 certification for excellent quality standards and technology. Made with state-of-the-art technology, stringent quality control, efficient R & D and precision engineering, the

Pearlpet range is today looked as a mark of Quality.

The product development cell with state-of-the-art CAD/CAM facility constantly upgrades & customizes various shapes & sizes, & innovates to remain ahead of competitors

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.39.28
UK Pound	1	Rs.80.87
Euro	1	Rs.57.68

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	-
--LEVERAGE	1~10	2
--RESERVES	1~10	-
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	NO
TOTAL		15

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