MIRA INFORM REPORT

Report Date :

28.08.2008

IDENTIFICATION DETAILS

Name :	MAHAVEER CYLINDERS LIMITED [w.e.f. 19.03.1996]
Formerly Known As :	Badopalia Industries Limited
Registered Office :	B-13/5, Jhilmil Industrial Area, Shahdara, Delhi- 110 095
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	30.11.1981
Com. Reg. No.:	55-12737
CIN No.: [Company Identification No.]	U40200DL1981PLC012737
TAN No.: [Tax Deduction & Collection Account No.]	DELM06220E / DELM08568A
PAN No.: [Permanent Account No.]	DELM06220E
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturer of LPG cylinders and auto gas containers for automobiles

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 230000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has wiped out previous losses. It’s payments are slow but correct. The company can be considered for small to mediocre business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	B-13/5, Jhilmil Industrial Area, Shahdara, Delhi- 110 095, India
Tel. No.:	91-11- 22582460 / 22582464
Mobile No.:	91-9811152493
Fax No.:	91-11- 22127429 / 22582460
E-Mail :	mahaveer_cylinder_ltd@hotmail.com mcl@aautolpgsolutions.com mclhelpline@yahoo.com pankajym5@yahoo.com vkgoelca@vanl.com
Website :	http://www.aautolpgsolutions.com
Area :	3272 sq. mtr.[Owned]
Factory :	59/1/5, Site – IV, Industrial Area, Site – IV, Industrial Area, Shahibabad, Ghaziabad – 201010, Uttar Pradesh, India
Tel. No.:	91-120-2896418 / 2896419 / 2896421
Fax No.:	91-120-2896421

DIRECTORS

Name :	Wg. Cdr. (Retd) MK Gulati
Designation :	Director
Name :	Mr. Pankaj Mittal
Designation :	Director
Address :	A-19, Phase – I, Vivek Vihar, Delhi – 110095
PAN No.:	AAIPM7936K
Date of Birth/Age :	14.06.1939
Qualification :	Bachelor of Arts
Experience :	10 Years
Date of Appointment :	05.12.2001
Name :	Mr. Dinesh Mittal
Designation :	Managing Director
PAN No.:	AAIPM8655K
Address :	A-19, Phase – I, Vivek Vihar, Delhi – 110095
Date of Birth/Age :	02.03.1968
Qualification :	B.Com.
Experience :	15 Years
Date of Appointment :	23.08.2004
Name :	Mr. Rajesh Gupta
Designation :	Director
PAN No.:	AEFPG5873E
Address :	A-19, Phase – I, Vivek Vihar, Delhi – 110095
Date of Birth/Age :	22.08.1966
Qualification :	Graduate
Experience :	12 Years
Date of Appointment :	01.04.2000
Name :	Mrs. Nirupa Mittal
Designation :	Director
PAN No.:	AAIPM7935L
Address :	A-19, Phase – I, Vivek Vihar, Delhi – 110095
Date of Birth/Age :	20.09.1969
Qualification :	B.Com.
Experience :	8 Years
Date of Appointment :	12.08.2000
Name :	Mr. SK Mittal
Designation :	Director
Address :	PICUP Bhawan, Gomti Nagar, Lucknow – 226010
Date of Appointment :	07.12.1983
Name :	Mr. Jagdish Prasad Mittal
Designation :	Director
PAN No.:	AAIPM9064G
Address :	A-19, Phase – I, Vivek Vihar, Delhi – 110095
Date of Birth/Age :	14.06.1937
Qualification :	S.S.L.C.
Experience :	50 Years
Date of Appointment :	30.01.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.04.2007

Names of Shareholders	No. of Shares	Percentage of Holding
Delhi Copper Impex Limited	19200	1.78
Dinesh Mittal	119360	11.05
Pankaj Mittal	146480	13.56
Savitri Devi	580960	53.79
Sunita Gupta	44000	4.07
Rajesh Gupta	10000	0.93
Jagdish Prasad Mittal	160000	14.82
Total	1080000	100.00

AS ON 30.09.2007

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	27.70
Directors or relatives of directors	72.30
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of LPG cylinders and auto gas containers for automobiles
Products :	LPG Cylinders and Auto Gas Containers Automobile cylinders Domestic cylinder Automobile toroidal cylinder Domestic cylinders small Auto gas cylinder Auto LPG containers Pressure liquidfied petroleum gases Vaporizer regulator Gas lock off solenoid
Terms :
Selling :	Local : 95 % International : 5 % Exports to : Asia Pacific : 5 % Selling Terms : Local Sales Terms : Open Account : 15 days Export Terms Advance
Purchasing :	Local : 100 % Purchasing Terms Local Purchase Terms Open Account : 30 days

PRODUCTION STATUS

[As On 31.03.2008]

Particulars	Unit	Installed Capacity	Actual Production
LPG Cylinders	Units	420000	81495

GENERAL INFORMATION

Suppliers :	Steel Authority of India Limited, India [75 % of Total Purchases; Length of Relationship : 20 Years]
Customers :	Government Body Indian Oil Corporation Limited, India [30.60 % of Total Sales Length of relationship : 20 years] BP HPC Aditiya fuels Laxmi Yashgreen Auto Fuels Private Limited Yash Propane Auto Energy Private Limited Unitex Auto Motive
No. of Employees :	100
Bankers :	Punjab National Bank Preet Vihar, Delhi – 110092, India ICICI Bank Limited Kaushambi, Ghaziabad, Uttar Pradesh, India
Facilities :	Short Term Bank Facilities [INR Rs. 18.500 Millions]

Banking Relations :	Satisfactory
Auditors :
Name :	Virender Kumar and Associates Chartered Accountants
Address :	212, Rohini Complex, WA-107/121, Shakarpur, Delhi – 110092, India
Associates/Subsidiaries :	Tirupati Realtech Private Limited Line of Business : Real Estate Business

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs. 10/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1080000	Equity Shares	Rs. 10/- each	Rs. 10.800 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		10.800	10.800	10.800
2] Share Application Money		4.000	4.000	0.000
3] Reserves & Surplus		31.835	6.205	6.216
4] (Accumulated Losses)		0.000	[5.371]	[8.187]
NETWORTH		46.635	15.634	8.829
LOAN FUNDS
1] Secured Loans		7.937	8.240	5.424
2] Unsecured Loans		7.952	7.874	13.428
TOTAL BORROWING		15.889	16.114	18.852
DEFERRED TAX LIABILITIES		0.588	0.000	0.000
TOTAL		63.112	31.748	27.681
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		20.595	11.105	12.128
Capital work-in-progress		0.467	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.394	1.959
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.983	10.662	7.869
	Sundry Debtors	4.515	3.078	6.089
	Cash & Bank Balances	16.848	1.760	1.426
	Other Current Assets	1.804	1.813	1.826
	Loans & Advances	26.726	5.473	5.022
Total Current Assets		53.876	22.786	22.232
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2.134	2.331	8.638
	Provisions	9.692	0.206	0.000
Total Current Liabilities		11.826	2.537	8.638
Net Current Assets		42.050	20.249	13.594
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		63.112	31.748	27.681

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		95.291	85.967	119.948
Other Income		39.295	1.244	1.477
Total Income		134.586	87.211	121.425
Profit/(Loss) Before Tax		42.611	4.586	1.000
Provision for Taxation		10.674	1.771	0.522
Profit/(Loss) After Tax		31.937	2.815	0.478
Expenditures :
	Raw Material Consumed	55.680	57.619	101.494
	Purchases made for re-sale	0.000	9.077	1.728
	Consumption of stores and spares parts	1.199	1.309	1.507
	Increase/(Decrease) in Finished Goods	2.453	[2.299]	[0.059]
	Salaries, Wages, Bonus, etc.	2.190	1.559	2.055
	Managerial Remuneration	0.720	0.720	0.450
	Payment to Auditors	0.045	0.044	0.044
	Interest	1.513	1.705	1.292
	Insurance Expenses	0.098	0.067	0.053
	Power & Fuel	6.350	6.376	6.906
	Depreciation & Amortization	1.549	1.719	1.822
	Other Expenditure	20.178	4.729	3.133
Total Expenditure		91.975	82.625	120.425

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	23.73	3.23	0.39
Net Profit Margin (PBT/Sales)	(%)	44.72	5.33	0.83
Return on Total Assets (PBT/Total Assets}	(%)	57.22	13.53	2.91
Return on Investment (ROI) (PBT/Networth)		0.91	0.29	0.11
Debt Equity Ratio (Total Liability/Networth)		0.59	1.19	3.11
Current Ratio (Current Asset/Current Liability)		4.56	8.98	2.57

LOCAL AGENCY FURTHER INFORMATION

PROFILE

Subject was incorporated in the year 1991. Subject is the part of JP Mittal Group established in 1973 as trading house for non – ferrous metal and products analogous to that in Delhi. The subject is engaged in manufacturing of LPG cylinders and auto gas containers for automobiles. The name of he subject was changed from Badopalia Industries Limited to Mahaveer Cylinders Limited on 19^th March 1996.

Moreover, subject is an ISO 9001:2000 certified company.

OPERATIONS

3443-0104

Manufacturers cryogenic tanks, for liquids and gases

3443-0110

Manufacturers fuel tanks [oil, gas, etc.] metal plats

3714-0114

Manufacturers gas tanks, motor vehicles

ISO CERTIFICATION

Subject was awarded ISO 9001:2000 Certification by United Registrar of Systems Limited for Quality Management Systems for Manufacturer and supply of Steel Gas Cylinders / Containers

Certificate No. 6240 dated 10^th August 2005 valid up to 31^st August 2008

PRODUCTS

Products Type	End use Applications
Auto Gas cylinder	Domestic, Industrial and Automobile use
LPG Cylinder
Auto LPG Containers / Tanks
LPG Kit

BANKER’S REPORT

The subject deals with the Punjab National Bank for the last three months.

The Subject enjoys the following credit facilities from the bank as on 25^th June 2008

Particulars	Amount Sanctioned [Rs in Millions]	Amount Disbursed [Rs in Millions]
Cash Credit Limit	18.500	18.500
Total	18.500	18.500

INSURANCE

Company	Iffo-Tokio General Insurance Company Limited
Address	34, Nehru Place, New Delhi – 110019, India
Insurance coverage taken on assets	Blanket coverage
Insured Amount	Rs. 46.900 Millions

INSURANCE DETAILS

The subject has taken the Insurance Policies, which are as follows :

Type of Insurance	Assets Insured	Insured Amount [INR]	Period of insurance
Fire insurance			From	To
	Stock	16.500	10.04.2008	09.04.2009
	Building	8.600
	Plant and machinery	5.300
Burglary	Stock	16.500	10.04.2008	09.04.2009
Total Insured Amount		46.900

REGISTRATIONS

Small Scale Industries Registration Number : 09/009/12/00182

Dated : 11^th May 2007

STATUTORY COMPLIANCE

Are the Statutory Compliances in respect of Sales Tax, Excise Duty Dues, Income Tax Dues, Income Tax Dues are in order :

Statutory Compliance
Return / Documents	Filed on date
Income Tax returns	Filed up to AY 2007-08
Sale Tax returns	June 2008
Service Tax	24^th April 2008
Wealth Tax	NA
Excise Duty	3^rd July 2008
EPF Return	11^th July 2008

SITE VISIT COMMENTS (HEAD OFFICE)

The Site Visit was conducted at 59/1/5, Site – IV, Industrial Area, Site – IV, Industrial Area, Shahibabad, Ghaziabad – 201010, Uttar Pradesh, India

During site Visit Pankaj Mittal - Director, provided following information:

Size of Premises	3272 sq. meters
Site Details Type	Main road
Site Location	Industrial area
Distance from the nearest Highway	1.5 Kilometers
Distance from the nearest Railway Station	1 kilometer
Location used as	Office cum factory
Kind of Building	Adobe building
On Floor	Ground plus first floor
Total Floors in Building	Ground plus first floor
Type of Occupation	Owned
Does Group Companies share the office	No
If the office well furnished	Yes
Does the owner have separate cabin	Yes
Any fire extinguisher	Yes – 7
No of people working at this location	100
If management sits at the site location	Yes

What facilities are available for disposal of waste generated in the production process	There is on waste generation, however the iron scrap generated is accumulated and sold with in a week.
Proximity to Raw Material Source	Indigenous
Are / Is Owners involved in any other Business	Yes
Name of the Company	Tirupati Realtech Private Limited
Line of Business	Real Estate Business
Are there any competitors around	No
Are there any boards / nameplates outside the premises	Yes
Is the power supply to the site continuous or are there frequent lapses of power	Continuous power supply
Was the owner present at the time of interview	Yes
Since how many years the subject is in operation	Since 1981
Since how many years the subject occupies the current location	Since 2007
Has there been any change of location	Yes
It yes, former address	B-13/5, Jhilmil Industrial Area, Shahdara, Delhi- 110 095
How will you describe condition of the premise	Good

NETWORTH STATEMENT OF DIRECTORS

Name	Amount [INR in Millions]
J P Mittal	42.571
Dinesh Mittal	11.773
Pankaj Mittal	55.827
Rajesh Mittal	0.250
Nirupa Mittal	2.908

STRENGTHS

• Experienced Management
• ISO certified and use of quality improvement concepts
• Efficient Receivable and Payable Management

WEAKNESSES

• Concentrated Supplier base

OPPORTUNITIES

• Growth in automotive sector will drive the demand for company’s product
• Providing internet – based business activities will enable the subject to explore the market

THREATS

• Relentless pressure to maintain profitability due to rising input / raw material prices
• Requirement of continuous and improved R & D to face the challenges of the competitors and to fulfill the specific needs of a changing market

BANKERS CHARGES REPORT AS PER REGISTRY

Name of the company	MAHAVEER CYLINDERS LIMITED
Presented By	Mr. Dinesh Mittal [Managing Director]
1) Date and description of instrument creating the change	13.07.2001, Deed of Hypothecation of book debts, hypothecation of goods / tripartite agreement for second charge over the land and building capital assets of the company.
2) Amount secured by the charge/amount owing on the securities of charge	CC [Hypothecation] Rs. 6.000 Millions and Rs. 1.500 Millions for Bank Guarantee, Totaling Rs. 7.500 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	First charge over the entire book debts and entire stock of company and second – charge over entire land and building and over capital assets of company
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest @ 4 % + PLR Per annum 30 % Margin of Paid Stock and 40 % Margin for Book debts out stdg. Upto 90 says, repayable on demand and subject to annual review in addition to second charge over land and building and capital assets company.
5) Name and Address and description of the person entitled to the charge.	Corporation Bank, Vivek Vihar, New Delhi – 95
6) Date and brief description of instrument modifying the charge	Documents dated 26.12.2003 Take Delivery letter to demand promissory note, demand promissory note, agreement for hypothecation of book debts, arbitration agreement, guarantee agreement, deed of hypothecation of goods to secure demand cash credit, GPA for book debts and support bills, letter fo consent for disclosure by borrowers, letter of conformation, letter of consent for disclosure of information by guarantors.
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.	Bank Guarantee Limit stand revised at Rs. 3.000 Millions enhancement from Rs. 1.000 Million in lieu of EMD/Security Deposit / towards the supply of valves to oil marketing companies HPCL/BPCL/IOCL etc. Cash Margin being 25 %, commission charged at prescribed rates of bank, counter guarantee of the company.

This form is for	Creation of charge
Corporate identity number of the company	U40200DL1981PLC012737
Name of the company	MAHAVEER CYLINDERS LIMITED
Address of the registered office or of the principal place of business in India of the company	Delhi – 110095, India
Type of charge	Immovable Property Movable Property
Particular of charge holder	Punjab National Bank Preet Vihar Delhi – 110092, India guprekhacs@rediffmail.com
Nature of description of the instrument creating or modifying the charge	Deed of general counter indemnity executed on 23.02.2008
Date of instrument Creating the charge	23.02.2008
Amount secured by the charge	Rs. 12.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Commission rate will be 2.40 % p.a.
Short particulars of the property charged	Plant and machinery, furniture fixtures and fittings, vehicles office equipments Corporate guarantee of Mahaveer cylinders limited Personal guarantee of directors Immovable property at 59/15 site IV-Industrial area, Sahibabad, District Gaziabad, UP

AS PER WEBSITE

Yash Propane Auto Energy Pvt Limited was incorporated as company registered under the Indian Companies Act, on 16^th January 1997, and since its inception company is wholly engaged in the manufacturing and developing of the Auto Fuel Conversion Kits for vehicles. The company is the first company in India to develop first fully indigenised fuel conversion kit. These systems satisfy strictest of emission norms. While launching the GEBS series in 1999 the R and D team had targeted the emission norms, which were fixed for year 2000. The further developments are also targeted at the same pace to achieve results one year ahead.

At a time, when environmental advantage of application of LPG and CNG as Auto Fuel was being realized, extending the retrofitment of gaseous fuel systems to not only the Govt and Commercial vehicles but also to more and more private vehicles was envisaged.

To transform heavy-duty diesel engines to gas engines in used buses, trucks and light heavy vehicles was a challenging problem of the times. This company is the first company in the sub-continent, which has tackled this problem; the R&D teams along with experts of Indian Institute of Petroleum have succeeded in transforming a 90 BHP Diesel Engine in 1999 into a gaseous fuel operated engine.  

The systems ensure Favourable Exhaust Emissions, which not only compete with Indian standards but also are able to cope with more strict Euro Standards. To make the pace up–to–date YPAEL has signed a professional MOU with IIP Dehradun for continuous technological advancement.

Quality Assurance

Being an ISO 9001: 2000 certified organization by UKAS, they are committed to manufacture high quality range of cylinders, regulators and auto gas containers. All the containers are manufactured conforming to stringent quality norms provided under IS standards IS: 14899:2000. Further, the quality checking takes place as per the laid guidelines of Independent Authority of Govt. of India and Bureau of Indian Standards.

To ensure high degree of safety and quality of the containers, cylinders and other associated range, they use HR sheets, wires, welding rods, paints, powder coats to ensure durable performance at client's end.

Manufacturing Facility

They have set up a modern manufacturing unit, comprising of contemporary machines and equipment. It assists us in the manufacturing of cylinders and auto gas containers for automotive use, regulators and as per the specific requirements of the clients. Some of the machineries installed at the unit are:

• Rotary Shering Machine
• Hydraulic Pressure
• Trimming Machine
• CA Welding Machine
• MIG Welding Machine
• Furnace
• Hydrostatic Test Machine
• Short Blasting
• Zinc Coating Machines
• Powder Coating Machines
• Complete Conveyor System
• Pnumatic Machine and other required machineries

Testing Facility

Out Testing facility is also well equipped with new technological upgrades. They use following machines for the testings:

• UTM
• Calibrations
• Burst Testing Machines
• Fatigue Machine
• Burn Fire Testing
• Crush Testing

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.43.73
UK Pound	1	Rs.80.31
Euro	1	Rs.64.61

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		37

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