MIRA INFORM REPORT

Report Date :

05.04.2008

IDENTIFICATION DETAILS

Name :	TECHNIP KT INDIA LIMITED
Registered Office :	B-22 Okhla Industrial Area, Phase – I, New Delhi – 110020
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	11.08.1971
Com. Reg. No.:	005742
CIN No.: [Company Identification No.]	U72200DL1971PLC005742
TAN No.: [Tax Deduction & Collection Account No.]	DELT05713B
PAN No.: [Permanent Account No.]	AAACK3349R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers, Importers and Exporters of Gas Generators, Industrial Furnaces and Pressure Vessels Reactors.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 1665324
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established and reputed company having fine track. Trade relations are reported as fair. Business is active. Payments are reported as usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office/ Factory :	B-22 Okhla Industrial Area, Phase – I, New Delhi – 110020, India
Tel. No.:	91-11-26812439
Fax No.:	91-11-26813664/ 26819057
E-Mail :	ktind@giasdl01.vsnl.net.in tkmanager@technip.com parora@technip.com prasharma@tecnip.com
Corporate Office :	A – 4, Sector – 1, Institutional Area, Noida – 201301, Uttar Pradesh, India
Tel. No.:	91-120-431000
Fax No.:	91-120-4301010
Head Office :	7^th Floor, Ocean Complex, P-6, Sector –18, Noida – 201301, Uttar Pradesh, India
Tel. No.:	91-118-4515603 To 4515615
Fax No.:	91-118-4515601/4515602
Branch Office :	Located at : Ansal Tower, 38, Nehru Place, New Delhi – 110 020 Tel. No. 91-11-6211815 / 6211760 / 61 Fax No. 91-11-6471984 E-Mail: kinetics@gems.vsnl.net.in Mumbai Chennai.

DIRECTORS

Name :	Mr. Nello Vccelletti
Designation :	Director
Address :	Viala Castello Magliana 68, 00148 Rome, Italy
Date of Birth/Age :	02.04.1953
Date of Appointment :	20.11.2000
Name :	Mr. Kuli Frans Jacobus Van Der
Designation :	Director
Date of Birth/Age :	07.08.1959
Date of Appointment :	23.06.1997
Name :	Dr. Rihani Nath Devinder
Designation :	Whole Time Director
Date of Birth/Age :	18.09.1940
Date of Appointment :	23.08.2001
Name :	Mr. Desseilligny Pierrob Jean Marie Daniel
Designation :	Director
Date of Birth/Age :	07.04.1943
Date of Appointment :	20.08.999
Name :	Mr. Wadhwani Mulram Hiro
Designation :	Director
Address :	15 Silver Oaks Avenue DLF City Phase – 1. Guargaon - 122002, Haryana
Date of Birth/Age :	14.07.1943
Date of Appointment :	01.02.2001
Name :	Mr. Raghuraman Subrayan Kodumudi
Designation :	Director
Address :	Spegheldeef 9 2353, BJ Leiderdorp, Netherland
Date of Birth/Age :	15.07.1942
Date of Appointment :	20.05.1992
Name :	Mr. Mathur Shekhar Chandra
Designation :	Director
Address :	109, Kailash Hills, New Delhi – 110065, India
Date of Birth/Age :	10.02.1951
Date of Appointment :	01.03.2000
Name :	Mr. Bodrero Patrick
Designation :	Director
Address :	8 Rue Say, 75009, Paris, France
Date of Birth/Age :	26.11.1955
Date of Appointment :	20.11.2000
Name :	Mr. Ram kishore Iruvanti
Designation :	Managing Director
Address :	101 Karishma Apartments, A K GRP Housing Society, Limited, 27 IP Extantion, Patpaganj, Delhi – 110092, India
Date of Birth/Age :	06.08.1953
Date of Appointment :	17.02.2005
Name :	Mr. Philippe Grasset
Designation :	Director
Address :	51 Rue Paul, 78290, France
Date of Birth/Age :	11.05.1963
Date of Appointment :	10.03.2006
Email :	pgrasset@technip.com
Name :	Mr. Frans Roozendaal
Designation :	Director
Address :	Benelux BV 26 Bredewater PO Boxes 86 2700 Zootermeer, The Netherlands
Date of Birth/Age :	15.04.1959
Date of Appointment :	23.07.2003
Name :	Etienne Cabanes
Designation :	Director
Address :	8 Bis Rue Magenta, Versailles 78000, France
Date of Birth/Age :	17.03.1956
Date of Appointment :	10.03.2006
Name :	Mr. Patrick Bodrero
Designation :	Director
Name :	Mr. Gulshan K. Chhabra
Designation :	Whole Time Director
Address :	Shanti Niwas 4/223, Subhash Nagar, New Delhi, India
Date of Birth/Age :	18.04.1956
Date of Appointment :	29.10.2003
Name :	Mr. H M Wadhwani
Designation :	Alternate Director
Name :	Mr. Chandra DShekhar Mathur
Designation :	Alternate Director
Address :	A-12, East Nizammudin, New Delhi – 110013, India
Date of Birth/Age :	10.02.1951
Date of Appointment :	01.03.2000

KEY EXECUTIVES

Name :	Mr. Kaul Witin
Designation :	Company Secretary
Date of Birth/Age :	01.07.1977
Date of Appointment :	28.02.2003
Name :	Mr. Pathik Arora
Designation :	Company Secretary
Address :	F – 12/20, Krishna Nahar, Delhi – 110051, India
Date of Birth/Age :	12.09.1975
Date of Appointment :	08.10.2003
Name :	Mr. Prashant Sharma
Designation :	Company Secretary
Address :	E-603 Ansal Neelpadm 1, Plot No.4 Sector No. 5, Vaishali, Ghaziabad – 201010, Uttar Pradesh, India
Date of Birth/Age :	23.07.1975
Date of Appointment :	01.11.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 30.09.2005)

Names of Shareholders	No. of Shares
Technip Holding Benelux B. V., Netherland	13,999,931
Others	10
Bodrero Patrick	10
Uccelletti Nello	13
Knook Hans Jointly with Mr. Chhabra K. Gulshan	16
Mr. Deseilliging Jean jointly with Mr. Wadhwani	10
Mr. Kul F J Van Deer jointly with Mr. Mathur	10
Total	14000000

(As on 31.03.2007)

Category	Percentage
Foreign Holding (FIIs, FCs, FFIs, NRIs, OCBs, or Others)	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers, Importers and Exporters of Gas Generators, Industrial Furnaces and Pressure Vessels Reactors.

Products :

Products Description	Item Code No.
Gas Generators-Others	840510.09
Industrial Furnaces-Others	841780.00
PressureVessels/Reactors, Columns/Towers/Chemical Storage Tanks	841989.01

Brand Names :

‘KTI’

Exports :

Products :

• Iran,
• Romania

Countries :

Malaysia

Imports :

Products :

Countries :

• Holland,
• Germany
• U.K

Terms :

Selling :

L/C

Purchasing :

L/C, Credit (30-60 days)

GENERAL INFORMATION

Customers :	Manufacturers Government bodies.
Suppliers :	Allied Alloy Products Altop Industries Advance Valves Private Limited Bliss Anand (Private) Limited BDK Engineering Industries Private Limited Commercial Supplying Agency EBY Fasteners Econo Valves Private Limited Flameproof Equipts Private Limited Fluid Control Private Limited Fix Fit Fasteners Mfg Private Limited Flexpro Electrical Private Limited Goa Instruments Industries GSS Industries Golden Iron and Steel Works K.L. Engineering Company Private Limited Kartik Steel Limited Micro Finish Valves Private Limited Micro Precision Product Nodule Cast Precision Auto Engineers Syndicate Engineering Industries Tube Products Incorporate Venus Steel Products
No. of Employees :	150
Bankers :	Deutsche Bank AG., Tolstoy House, 15-17 Tolstoy Marg, New Delhi – 110 001, India Banque National De Paribas, 15, Barakhamba Road, New Delhi – 110 001, India ABN Amro Bank NV 15, Hansalaya Building, Barakhamba Road, New Delhi – 110001, India

Banking Relations :	Satisfactory
Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	PW Centre, Saidulajab, Mehruli Badarpur Road, Opp. D Block Saket, New Delhi – 110030, India
Name :	V Nijhawan Chartered Accountant
Address :	P-1 Aditya Vihar Saidulajab, opp D Block Saket New Delhi – 110030, India
Parent/ Holding Company :	Technip Holding Benelux B.V., Netherland
Associates/Subsidiaries :	KTI Manufacturing Private Limited ( U00000DL2001PTC110134) New Delhi – 110 020, India (Manufacturers of Gas Generators and Industrial Furnaces)
Group Companies :	Technip-Coflexip Technip Abu Dhabi Technip Benelux BV Technip Engineering (Thailand) Limited Technip Germany GmbH Technip Iberia Technip Italy S. P. A. Technip KTI S. P. A. Technip Portugal Technip U.S.A. Corporation (Claremont, California and U.S.A. ) Technip U.S.A. Corporation – Houston Tipiel S. A.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14000000	Equity Shares	Rs.10/- each	Rs.140.000 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		140.000	14.000	140.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		276.331	253.399	226.768
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		416.331	267.399	366.768
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		416.331	267.399	366.768
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		222.221	240.477	239.497
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		25.772	16.855	2.500
DEFERREX TAX ASSETS		0.000	0.000	7.883
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.784	3.088	65.101
	Sundry Debtors	222.791	178.861	181.994
	Cash & Bank Balances	647.422	614.494	473.842
	Other Current Assets	5.402	0.816	1.134
	Loans & Advances	67.942	50.257	26.874
Total Current Assets		945.341	847.516	748.945
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	562.001	537.821	582.931
	Provisions	215.002	173.628	49.126
Total Current Liabilities		777.003	711.449	632.057
Net Current Assets		168.338	136.067	116.888
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		416.331	267.399	366.768

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		1287.532	1098.991	1076.433
Other Income		76.139	135.397	50.865
Total Income		1363.671	1234.388	1127.298
Profit/(Loss) Before Tax		192.191	171.974	122.953
Provision for Taxation		67.583	65.828	42.893
Profit/(Loss) After Tax		124.608	106.146	80.060
Export Value		400.679	634.632	NA
Import Value		NA	109.115	NA
Expenditures :
	Cost of Goods Sold	0.000	0.000	0.000
	Manufacturing Expenses	0.000	0.000	0.000
	Administrative Expenses	0.000	0.000	125.843
	Raw Material Consumed	399.388	408.136	806.650
	Purchases made for re-sale	0.000	0.000	16.306
	Consumption of stores and spares parts	4.711	3.092	0.000
	Increase/(Decrease) in Finished Goods	(0.775)	85.727	55.546
	Salaries, Wages, Bonus, etc.	276.005	214.034	0.000
	Managerial Remuneration	6.209	4.903	0.000
	Payment to Auditors	1.281	0.727	0.000
	Interest	0.000	0.000	0.000
	Insurance Expenses	0.400	0.346	0.000
	Power & Fuel	0.978	1.289	0.000
	Depreciation & Amortization	36.850	40.496	0.000
	Other Expenditure	446.433	303.664	0.000
Total Expenditure		1171.480	1.062.414	1004.345

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	9.14	8.60	7.10
Net Profit Margin (PBT/Sales)	(%)	14.93	15.65	11.42
Return on Total Assets (PBT/Total Assets}	(%)	16.46	15.81	12.44
Return on Investment (ROI) (PBT/Networth)		0.46	0.64	0.33
Debt Equity Ratio (Total Liability/Networth)		1.87	1.66	1.72
Current Ratio (Current Asset/Current Liability)		1.22	1.19	1.18

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE:

The Company made substantial progress in the performance of various 'Lumpsum Turnkey' Projects and 'Engineering Services' Projects for its clients in India and abroad. Some of the jobs under execution or completed the year are as under:

• Reformer Components for Low Sulphur Diesel Production (LSDP) Project to BAPCO, Bahrain for Technip USA
• Corporation.
• Design and Engineering Services for Gl and GS15 Field Development (G1DP) Project at ONGC for dough Engineering Limited Australia.
• Mixed Xylene Unit for MRPL, Mangalore
• CCR Cyclemax Regeneration System Unit for VRCF Project for HPCL, Visakhapatnam
• Detailed Engineering Services for Ras Laffan RC2 Project for Technip France.
• Detailed Engineering Services for Hydrogen Plants of ExxonMobil-Air Products and Valero.
• Detailed Engineering Services for Canadian Natural Resources Limited. for Technip USA.

PROSPECTS

The Company has a good backlog of orders as at the end of the Financial Year. Some large value Lumpsum Turnkey Projects are likely to be awarded to the Company the first quarter of 2006-07.

ISO 9001 ACCREDITATION

The External Quality Auditors Det Norske Veritas (DNV) had conducted the quality audit and the Company has successfully been re-certified for ISO 9001:2000. The Management and the employees continue to accord due priority to Quality Management in their day to day operations.

EXPORT PROMOTION

The Company supplied Reformer Components for Low Sulphur Diesel Production (LSDP) Project to BAPCO, Bahrain for Technip USA Corporation. The Company also rendered engineering and software services to Technip Group Companies during the year.

CONTINGENT LIABILITIES:

The following are the details of Contingent Liabilities, the outflow of which is uncertain at this stage:

• Outstanding Foreign Letters of Credit Rs.60.949 Millions (2004-05 - Rs.22.125 Millions).
• Counter Guarantees to Bank Rs.349.279 Millions (2004-05 - Rs.433.579 Millions).
• Disputed Sales Tax for which appeals are pending with Assistant Commissioner of Sales Tax (Appeals) Rs.8.077 Millions (2004-05- Rs.8.077 Millions).
• Disputed Custom Duty for which Customs department has gone in appeal before CESTAT Rs.3.890 Millions (2004- 05-Rs.3.890 Millions).

SEGMENT REPORTING:

The Company's operating business is organised and managed by the geographical location of its customers, with

Primary Reportable Segment comprising of Indigenous (India) and Export (Rest of World) contracts, supplies and

Services related to turnkey engineering projects.

(a) The Company's business relates to trading, providing technical consultancy and engineering services integrated with consultancy, procurement, construction forming a single segment. The required information relating to segment revenue, total carrying amount of segment assets and total cost incurred during the period to acquire segment assets is same as disclosed in the financial statements.

(b) Additional information relating to asset based geographical segment. Rest of the World mainly constitutes customers in Italy, France, USA, Holland and Australia.

Form 8:

Name of the company	TECHNIP KT INDIA LIMITED
Presented By	By Company Thru Parthik Arora, Company Secretary
1) Date and description of instrument creating the change	Hypothecation Agreement Dated December, 08 1992 (Regd. On 15.01.1993)
2) Amount secured by the charge/amount owing on the securities of charge	Rs.60.000 Millions
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	The Whole of borrower stocks in trade present and future comprising of stocks of raw materials stores, and spares part, and semi finished goods (Whether raw or process of manufacturer of finished goods) movable fixed assets and all products, goods lying in or about or stored in or about the company premises factories godown at B 22 Okhala Industrial Area, Phase 1 New Delhi whether else the same may be including those in transit Borrower present an future book debts outstanding money receivable bills contracts right and assets
4) Gist of the terms and conditions and extent and operation of the charge.	First Charge repayable on demand interests @8% OBR minimum 22.25 p.a. margin 25% on stock and movable fixed assets
5) Name and Address and description of the person entitled to the charge.	ABN Amro Bank DLF Centre Sansad Marg, New Delhi – 110001, India
6) Date and brief description of instrument modifying the charge	Memorandum of entry (oral recital) for equitable mortgage dated 28.01.2004
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.	Charge to secure the due repayable of interests, cost, charge expenses and all monies payable for facilities granted by ABN Amro Bank and BPN Paribas by continuing additional charge over immovable properties at B-22 Okhla Industrial Area, Delhi ABN Amro Bank (Fund Based and Non Fund Based) Rs.331 Millions BNP Paribas (Fund Based and Non Fund Based) Rs.185 Millions

Corporate identity number (CIN) Foreign company registration number	U72200DL1971PLC005742
Name of the Company	TECHNIP KT INDIA LIMITED
Address	B-22 Okhla Industrial Area, Phase – I, New Delhi – 110020, India
This form is for	Modification of charge
Type of Charge	Immovable Property Book Debts Stock in trade
Particulars of the charge holder	ABN Amro Bank NV 15, Hansalaya Building, Barakhamba Road, New Delhi – 110001, India In.bs.delhi@in.abnamro.com
Nature or description of the instrument(s) creating or modifying the charge	Memorandum of Entry
Date of the instrument creating or modifying the charge	17.01.2007
Amount secured by the charge	Rs.431.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interests: Interests such other rate as may be prescribed by the bank from time to time Terms of Repayment: OD Repayable On Demand STPLR Maximum 12 months LC Valisity Usance Maximum 180 days Guarantee Maximum 3 years plus 6 months for claim period OBSI Multiple Derivative products maximum 12 months Margin: The company shall maintain such margin as may be specified by the bank from time to time Extension and operation of the charge: 100% Others: The above is to secure total limit of Rs.431.000 Millions The above charge is consortium with ABN Amro and BPN Paribas for Rs.431.000 Millions and Rs.260.000 Millions The Total consortium charge is for Rs.691.000 Millions
Short particulars of the property charged (including location of the property)	Equitable Mortgage of Immovable properties situated at B 22 Okhala Industrial Area, Phase 1 New Delhi The Whole of borrower stocks in trade present and future comprising of stocks of raw materials stores, and spares part, and semi finished goods Borrower present an future book debts outstanding money receivable bills contracts right and present and future comprising of stocks of raw materials stores, and spares part, and semi finished goods situated at B 22 Okhala Industrial Area, Phase 1 New Delhi
Particular of the present modification	The Total Credit Facilities of Rs.431.000 Millions secured by additional immovable properties situated situated at B 22 Okhala Industrial Area, Phase 1 New Delhi

Trade Reference:

• Hindustan Petroleum Corporation Limited, India
• Indian Petrochemicals Corporation Limited, India
• Indian Oil Corporation Limited, India
• Technip, Italy
• G. D. Engineering Company
• Indo Asiatic Engineering Private Limited

Fixed Assets:

• Leased Hold
• Building
• Plant and Machinery
• Furniture and Fixture
• Office Equipments
• Computers
• Vehicles
• Computer Software

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.39.97
UK Pound	1	Rs.79.78
Euro	1	Rs.62.60

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		66

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