MIRA INFORM REPORT

Report Date :

05.08.2008

IDENTIFICATION DETAILS

Name :	AGROCEL INDUSTRIES LIMITED
Registered Office :	4^th Floor, Doctor House, Lotus Colony, Opposite G. K. General Hospital, Bhuj (Kutch) – 370001, Gujarat
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	16.01.1985
Com. Reg. No.:	04-7569
CIN No.: [Company Identification No.]	U24210GJ1985PLC007569
IEC No.:	2088000739
TAN No.: [Tax Deduction & Collection Account No.]	RKTA01170B
PAN No.: [Permanent Account No.]	AACCA7205J
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Seller of Marine Chemicals and Agro Chemicals and Trader Seeds, Fertilizers, PVC Pipes T-shirts and others.

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 360000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Rituraj Ahintya
Designation :	Manager – Commercial
Contact No.:	91-22-28721862
Date :	04.08.2008
Name :	Mr. Chetan Vador
Designation :	Chartered Accountant
Date :	04.08.2008

LOCATIONS

Registered Office :	4^th Floor, Doctor House, Lotus Colony, Opposite G. K. General Hospital, Bhuj (Kutch)-370001, Gujarat, India
Tel. No.:	91-2832-253429
Fax No.:	91-2832-251429
E-Mail :	agrocel@hotmail.com rituraj@agrocel.net agrocel@bcm8.vsnl.net.in agrocelho@rediffmail.com
Website :	www.agrocel.co.in
Area :	3000 sq. ft
Location :	Owned – by Company
Corporate/ Marketing Office :	Plot No. B5, Gaiwadi Industrial Estate, S. V. Road, Goregaon (West), Mumbai -400 062, Maharashtra, India
Tel. No.:	91-22-28721862/28766032
Fax No.:	91-22-28766032
E-Mail :	info@agrocel.net
Area :	2000 sq. ft.
Location :	Rented
Factory 1 :	Greater Rann of Kutch, Near Village Dhordo, Taluka Bhuj, Kutch, Gujarat State, India
Tel. No.:	91-2803-288310/266082
Mobile No.:	91-9426731550
Fax No.:	91-2803-266082
Area :	28000 Acres
Location :	Owned by Company
Factory 2 :	Village – Avania bhavnagar [Under Construction]
Tel. No.:	91-278 -2882483 / 84
Fax No.:	91-278 -2882485
Area :	17 Acres
Location :	Owned by Company

DIRECTORS

Name :	Mr. Prafulbhai.M. Saraiya
Designation :	Directors
Address :	4, View Villa, 425, Sharaddhanand Road, Matunga (C.R.) Mumbai 400019, Maharashtra, India
Date of Birth/Age :	8^th December, 1942
Date of Appointment :	28^th December, 2000
Name :	Mrs. Usha A. Shroff
Designation :	Directors
Address :	B – 15, Vasanta Theosophical Society, Juhu Road, Juhu, Mumbai 400049, Maharashtra, India ushashroff@hotmail.com
Date of Birth/Age :	17^th July, 1947
Date of Appointment :	26^th June, 1996
Name :	Mr. Dipesh K Shorff
Designation :	Directors
Address :	Sanket, 39 Hatkesh Society, 6^th N.S. Road, JVPD Scheme, Vile Parle (West ) Mumbai 400056, Maharashtra, India
Date of Birth/Age :	3^rd February, 1960
Date of Appointment :	26^th June, 1996
Name :	Mr. Gohil Manoj Dhanshukhbhai
Designation :	Directors
Address :	Godavari Niwas, 15 Ambica Society, Bhuj, Kutch 3700001
Date of Birth/Age :	19^th July, 1958
Date of Appointment :	26^th June, 1996
Name :	Dr. Rajendra Prahlad Choudhari
Designation :	Directors
Address :	41 / B, Sukhada CHS., 4^th Floor, Pandurang wadi, 4^th Road, Goregaon (East) Mumbai 400063, Maharashtra, India
Date of Birth/Age :	23.11.1959
Date of Appointment :	26.12.2002
Name :	Mr. Vinayak Bhajibhai Buch IAS
Designation :	Director
Address :	‘Jhankar ‘ Plot No. 139, Sector No 8 , Gandhinagar 3822043
Date of Birth/Age :	21^st February, 1940
Date of Appointment :	26^th June, 1998
Name :	Mr. Jagdish Ramanlal Naik
Designation :	Directors
Address :	6 , Padma , S. V. Road Vile Parle (West ) Mumbai 400056, Maharashtra, India jagdish@excelind.com
Date of Birth/Age :	23.09.1958
Date of Appointment :	26.06.1996
Name :	Mr. Rajnikant Mohanlal Patel
Designation :	Director
Date of Birth/Age :	25.12.1952
Date of Appointment :	20.01.2004
Date of Ceasing :	29.12.2004
Name :	Mr. Satishchandra Shrivastav
Designation :	Director
Address :	A – 1, Satyam Flats, Near Gujarat College, Ellisbridge, Ahmedabad – 380006, Gujarat, India
Date of Birth/Age :	28.10.1956
Date of Appointment :	07.08.2005
Name :	Mr. Babulal Gupta
Designation :	Director
Address :	F – 1, Siddhant Apartments, Navrangpura, Ahmedabad – 380009, Gujarat, India
Date of Birth/Age :	05.05.1948
Date of Appointment :	26.06.1996

KEY EXECUTIVES

Name :	Mr. Raval Janakrai Dhanwamtrai
Designation :	Company Secretary
Date of Birth/Age :	14.11.1953
Date of Appointment :	28.08.2000

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 17.09.2005)

Names of Shareholders	No. of Shares
Transpek Industries Limited	10000
Transmetal Limited	12500
Manoj D Gohil / Anjuben Gohil	1250
Anjuben Gohil / Manoj D Gohil	1250
Praful Saraiya / Chetana Saraiya	1100
Hrishit A Shroff / Ashwin Shroff / Usha A Shroff	1700
Ravi Ashwin Shroff	3000
Ashwin C Shroff / Usha A Shroff	2000

(As on 30.09.2007)

Category	Percentage
Bodies Corporate	47.00
Directors or relatives of directors	44.00
Other top Fifty shareholders	9.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of Marine Chemicals and Agro Chemicals and Trader Seeds, Fertilizers, PVC Pipes T-shirts and others.

Products :

Products	ITC Code
Bromine	2801
Bronopol	3009

Exports :

Products :

All products

Countries :

• Europe
• Far East Asia
• France
• USA

Imports :

Products :

• Solvents
• Alkalies

Countries :

• China
• Far East Asia
• France
• Europe [Sometimes]

Terms :

Selling :

L/C, Cash and Credit [90 Days], D/A, D/P, Advance

Purchasing :

L/C Credit [60-90 Days], D/A [60-90 days]

PRODUCTION STATUS

Particulars	Installed Capacity	Actual Production
Bromine	3000 MT	2500 MT
Bromine Compounds	400 MT	300MT

GENERAL INFORMATION

Customers :	Manufacturers
No. of Employees :	Around 223 (Office – 15, Factory – 200 and Mumbai Branch – 8)
Bankers :	Bank of Baroda, Bhuj Branch HDFC Bank Limited, Bhuj Branch Kutch Gramin Bank, Bhuj Branch Bank of India, Main Branch, Bhuj Branch, Swaminarayan Commercial Complex, Hospital Road, Darbargadh, Prag Mahal, Bhuj - 370001, Gujarat, India State Bank of India, Jogeshwari [West] Branch, Mumbai, Maharashtra, India ICICI Bank Limited, Landmark race Course Circle, Alkapuri, Baroda – 390015, Gujarat, India
Facilities :	From Bank of India : C/C Rs.30.000 Millions Term Loan Rs.:20.000 Millions

Banking Relations :	Satisfactory
Auditors :
Name :	Madhusudan C. Mashruwala and Company Chartered Accountants
Address :	301-30, “Akik”, Opposite Lions Hall, Mithakhali, Ahmedabad-380006, Gujarat, India
Tel. No.:	91-79-26462430/26467183
Associates:	Excel Crop Care Limited Excel Industries Limited Transpek Industries Limited Trans Metal Industries Hyderabad Chemicals Limited Punjab Chemicals Limited Parul Industries Shroff Engineering

CAPITAL STRUCTURE

(As on 30.09.2007)

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.100/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.100/- each	Rs.25.000 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		25.000	25.000	25.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		47.887	41.751	40.419
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		72.887	66.751	65.419
LOAN FUNDS
1] Secured Loans		61.228	32.397	22.507
2] Unsecured Loans		72.929	73.547	52.634
TOTAL BORROWING		134.157	105.944	75.141
DEFERRED TAX LIABILITIES		24.600	21.729	19.203
TOTAL		231.644	194.424	159.763
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		164.653	140.998	105.764
Capital work-in-progress		20.639	29.804	14.510
INVESTMENT		15.345	15.385	0.664
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	74.620	68.953	46.422
	Sundry Debtors	68.673	44.510	95.962
	Cash & Bank Balances	20.599	7.445	1.998
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	25.520	23.370	9.973
Total Current Assets		189.412	144.278	154.355
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	148.451	132.197	109.229
	Provisions	9.954	3.844	6.301
Total Current Liabilities		158.405	136.041	115.530
Net Current Assets		31.007	8.237	38.825
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		231.644	194.424	159.763

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		449.730	327.368	334.721
Other Income		23.642	9.106	1.082
Total Income		473.372	336.474	335.803
Profit/(Loss) Before Tax		15.549	4.672	14.256
Provision for Taxation		0.000	3.340	5.784
Profit/(Loss) After Tax		15.549	1.332	8.472
Earnings in Foreign Currency :
Total Earnings		NA	121.720	87.796
Imports :
Total Imports		NA	32.468	32.581
Expenditures :
	Interest	12.698	7.999	6.056
	Depreciation & Amortization	10.328	8.163	6.133
	Other Expenditure	434.798	315.640	309.357
Total Expenditure		457.824	331.802	321.546

Expected Sales (2008-09) : Rs.670.000 Millions

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	3.28	0.40	2.52
Net Profit Margin (PBT/Sales)	(%)	3.46	1.43	4.26
Return on Total Assets (PBT/Total Assets}	(%)	4.39	1.64	5.48
Return on Investment (ROI) (PBT/Networth)		0.21	0.07	0.22
Debt Equity Ratio (Total Liability/Networth)		4.01	3.63	2.91
Current Ratio (Current Asset/Current Liability)		1.20	1.06	1.34

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Late Mr. C. C.Shroff, the founder member of M/s. Excel Industries Limited together with Shri K.C.Shroff had a dream to do activities for development and upliftment of farmers and rural population of the country.

The dream was to make available to farmers all possible agri-inputs and marketing support available at the right time and at a reasonable cost with all necessary technical assistance and guidance under one roof so that farmers farm productivity and income level increase along with national productivity. He was confident that with this the farmers of the country would be extremely benefited.

In line with this, the first Agrocel Service centre was started in Mandvi, Kutch, and Gujarat in 1988. After that other centers were opened in Kutch and other states of India.

However, before this - in 1969, Kutch experienced a particularly severe drought. Chandaben Shroff went there to assist in a famine relief project. During this trip, she realized that the rural women excelled at the local art of embroidery. This lead to the establishment of a not-for-profit making organization, called Shrujan, which worked in handicrafts with rural artisans.

Shrujan’s path was followed by VRTI (Vivekanand Research and Training Institute), which came in Kutchin 1975 and worked with farmers. It emphasized on supporting farmers and rural development activities.

The Shroff group felt that they are doing social activities in Kutchwith two non-government organizations and Agrocel Service Centers but in spite of being natives of Kutch, they have not yet set up any industry in Kutch.

With this thought, they decided to set up an industry where the raw material available in this region can be used to manufacture quality products. So, a decision was taken to set up a manufacturing unit for Bromine, Potash and Magnisium compounds, in the Rann of Kutch.

The Central Salt and Marine Chemical Research Institute (CSMCRI) assisted in identifying the site for the plant. 10,000 acres of land was taken on lease and after 4 long years of efforts, production was started in the plant in 1996.

Trade References:

• Mr. Kumar Inamar , MD Bilag Industries Private Limited Vapi
• Mr. Veersingh Raje Shosle VP _Export Punjab Chemicals & Corp. protection Limited
• Mr. Sandeep Tambe , Sr. Managae (Pur) , Lupin Limited Mumbai

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Furniture, Fixture and Equipments
• Vehicles

Bankers Charges Report as per Registry

Name of the company	AGROCEL INDUSTRIES LIMITED
Presented By	Mr. Gohil Manoj Dhanshukhbhai, Executive Director
1) Date and description of instrument creating the change	24.09.2005 Agreement of hypothecation of Plant and Machinery, Stock and Book debts
2) Amount secured by the charge/amount owing on the securities of charge	Rs.37.500 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	All tangible movable machineries and plant, both present and future installed or not, whether lying loose or in cases at site or in transit and all tangible movable properties assets and stocks whatsoever of borrower both present and future i.e. raw materials, finished goods, semi finished goods, parts, components stock in process wharsoever of marine Chemicals div and all the present and future book dents, outstanding money receivable, claims, bills due and owing to the borrower covering inter flexible limits in respect of Cash Credit against stock Rs.15.000 Millions, against book debts Rs.10.000 Millions, Export packing Credit Rs.10.000 Millions, IBP / IRN / DP / DA 120 days Rs.10.000 Millions within over all fund based limits oF Rs.25.000 Millions and Non fund Based limits in respect of bank guarantee of Rs.7.500 Millions and letter of credit DP / DA 120 days of Rs.5.000 millions making total non fund based limits of Rs.12.500 Millions and aggregate all the limits to Rs.37.500 Millions
4) Gist of the terms and conditions and extent and operation of the charge.	ROI: 11.75 % p.a. Margin : 25 % on Stock + 0 % on Book debts and for other limits as per extent guidelines of RBI / FEDAI / Bank Repayment : on Demand
5) Name and Address and description of the person entitled to the charge.	Bank of India, Main Branch, Bhuj Branch, Swaminarayan Commercial Complex, Hospital Road, Darbargadh, Prag Mahal, Bhuj - 370001, Gujarat, India
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

Corporation identity number or foreign company registrations number of the company	U24210GJ1985PLC007569
Name of the company	AGROCEL INDUSTRIES LIMITED
Address	Khet Udyog Bhawan Opposite High court, Navrangpura, Ahmedabad, Gujarat, India
This Form is for	Creation of charge
Type of Charges	Equitable mortgage or mortgage of property by depositing the title deeds
Particular of the charge holder	ICICI Bank Limited Landmarkrace Cource Circle Alkapuri, Baroda – 390015, Gujarat, India Hrushikesh.deshpande@icicibank.com
Nature or description of the instrument creating charge	Memorandum of entry for deposit of deeds of mortgage created by the company in favour of ICICI Bank Limited in respect of the companies immovable property admeasuring 35.75 sq mtrs situated at Sangli
Date of instrument creating charge	19.04.2006
Amount Secure by the charge	Rs.0.620 million
Description of the property charge whether it is a charge on	Immovable Properties
Particulars of property charged	Agrocel Industries Limited “Ghjeware Icon” 302 Shop No 4 ST Stand Road Gaon Bhag, Sangli 416416, Maharashtra, India

WEBSITE DETAILS

PROFILE

Subject is a closely held limited company having 89% stake of Shroff Family and 11% stake of Gujarat Agro Industries (Gujarat Government Enterprise).

Shroff Group of Companies include: Excel Industries Limited, Excel Crop Care Limited, Transpek Industries Limited, Trans Metal Industries, Hyderabad Chemicals Limited, Punjab Chemicals Limited, Parul Industries and Shroff Engineering.

Shroff Group is well known for manufacturing chemicals with complicated chemistry by innovative ideas and with in-house R & D.

Agrocel Industries operates through its two divisions:

● Agriculture Service Division

● Marine Chemicals Division

Underlying Principles:

● Extracting advantage out of difficult situation.

● Local employments

● Nurturing remotely located border districts of India

● Achieving outstanding performance from local human resources

● Creative organization

● Simplicity + low overheads = turnover management

● Beyond logic project

● Flat structured organization

● Social responsibility

● Goodwill of the people

● Using group dynamics as a tool and with common clarity, common goal and common direction, a dedicated team of 250 will undertake new challenges.

● Dynamic Board members / Stock holders.

Human Resources:

● Working University

● Each individual has a dynamic potential.

● Education system creates subject focused expertise. Agrocel converts that to multifaceted versatility.

● Agrocel trains people who are deprived of formal education to operative expertise in their chosen fields.

● Flat organizational structure enables Agrocel to build up a homogenous strong team.

● Team work is the key to Agrocel's success.

● Low manpower turn over.

● Fair Trade practices reaps loyalty.

Associations and Alliances

Subject has many linkages with NGO’s, to ensure a total impact on improved livelihood in the areas:

NGO Work Field

Shroff Foundation Provides employment in embroidery by hand. Also runs programs in water shed,

health, animal husbandry and agriculture.

 CC Shroffs self help center Provides employment to families from city slum areas, by value addition in textiles

and gift articles.

 Shrujan Trains and provides an occupation for 3000 women in embroidery by hand and

stitching.

 Vivekanand Research and

Training Institute Researches and trains to improve farmer areas with programs in water

management, water harvesting, children education, employment generation and

animal husbandry.

 VGS Trains and provides an occupation in batik, hand printing and block printing for

500 families.

To keep track of the latest developments company has good contacts and links with government, research and educational institutes, sharing knowledge and expertise: 

• Agricultural Universities
• Central Cotton Research institute
• ICRISAT (International Crop Research Institute for Semi Arid Tropics)
• Manage (National Institute of Agricultural Extension Management)
• NTGCF (National Tree Growing Cooperatives Foundation)
• NDDB (National Dairy Development Board)
• NRCG (National Research Center for Groundnut)

Associated Websites:

www.agrocel-cotton.com
to meet the demand for a reliable Organic and Fairtrade Cotton Fibre, Agrocel Industries Limited, in conjunction with Vericott Limited and Traidcraft Exchange, have defined and branded a cotton fibre. Agrocel® Pure & Fair Indian Organic Cotton.

www.naturally-elegant.com
they provide high quality natural ingredients to the fast growing personal care and health spa industries through their partner - Naturally Elegant, LLC

www.gossypium.co.uk
UK's leading organic and fairly traded cotton clothes' brand.

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.42.40
UK Pound	1	Rs.83.57
Euro	1	Rs.66.02

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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