MIRA INFORM REPORT

Report Date :

08.12.2008

IDENTIFICATION DETAILS

Name :	DANLAW TECHNOLOGIES INDIA LIMITED
Formerly Known As :	VIJAY GROWTH HOME FINANCE LIMITED
Registered Office :	Plot No. 43, Sagar Society, Road No.2, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	03.12.1992
Com. Reg. No.:	15099
CIN No.: [Company Identification No.]	L72200AP1992PLC015099
TAN No.: [Tax Deduction & Collection Account No.]	HYDD01290C
PAN No.: [Permanent Account No.]	AAACG8334L
Legal Form :	Public Limited Liability company. The company’s Shares are listed on the Stock Exchanges.
Line of Business :	The Company’s principal activity is to provide software development services

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 1600000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track records. Profit margin is under tremendous pressure. The company’s performance at the current year may not be favourable. It’s payments are reported as slow. However the company can be considered for small to mediocre business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Plot No. 43, Sagar Society, Road No.2, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India
Tel. No.:	91-40-2354 2499 / 2355 0851/59/61/62
Mobile No.:	91-9849491990
Fax No.:	91-40-23556259 / 2354 1671
E-Mail :	info@danlawinc.om info@danlawtechnologies.com ggrao@danlawinc.com ramanabv@danlawinc.com
Website :	http://www.danlawtechnologies.com
Branch Office :	1271, Road No. 63, Jubilee Hills, Hyderabad – 500 033, Andhra Pradesh, India
Tel. No.:	91-40-2355 6255 / 56 / 57 / 58
Fax No.:	91-40-2355 6259
E-Mail :	prakashk@danlawinc.com
ESAP Office :	5, Sagar Society, Road No.2, Banjara Hills, Hyderabad - 500 034, Andhra Pradesh India.
Tel. No.:	91-40-2355 0851/59/61/62
Fax No.:	91-40-23541671
USA Office :	23700, Research Drive, Farmington Hills, Michigan 48335-2624, USA
Tel. No.:	248-476-5571
Fax No.:	248-471-4485
E-Mail :	timm@danlawinc.com tomr@danlawinc.com

DIRECTORS

Name :	Mr. Raju S Dandu
Designation :	Chairman and Managing Director
Name :	Mr. V K Menon
Designation :	Director
Name :	Mr. Prakash S Kenjale
Designation :	Director
Name :	Mr. Lloyd R Lawrence
Designation :	Director
Name :	Mr. M A Ashok Kumar
Designation :	Alternate Director to Lloyd R Lawrence
Name :	Mr. D S N Raju
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Sindhu M S
Designation :	Company Secretary
Name :	Mr. B V Ramana
Designation :	Executive Vice President – ESD
Name :	Mr. Prakash B Kulkarni
Designation :	Executive Vice President – IT
Name :	Mr. G Govardhan Rao
Designation :	Vice President
Name :	Mr. Kishan Chowbene
Designation :	Vice President – Marketing and Sales
Name :	Mr. E U S Prabhakar
Designation :	General Manager – ESD
Name :	Mr. A V R K Varma
Designation :	Chief Manager – Accounts

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 31.03.2008)

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters (incl. PAC.s)	1850605	49.74
Non-Promoters
Banks / FI / MFs / CG, SG Inst.	43000	1.16
Bodies corporate	360409	9.69
NRI / OCB	5703	0.15
Indian Public	1460583	39.26
Total	3720300	100.00

BUSINESS DETAILS

Line of Business :

The Company’s principal activity is to provide software development services

Products :

Product Description	ITC Code
Computer Software	85249009.1

Automotive

· Flight Recorder  

· Vehicle Tester 

· Real Time Car Tester

Digital Signal Processing

· Acoustic Echo Canceller 

· Line Echo Canceller 

· Modems 

· FFT 

· Vocoders 

· Voice/Data/Fax Multiplexer 

· DTMF/VAD/DTD

Information Technology

· SUVIDHA 

· ESAP 

· GECIS Telecom Digital Cockpit 

· Web Based Training on Project Management 

· CARMAN 

· Software Release Records 

· Danlaw Automated Resource Tracking System 

· Little Professor Home Office System 

· eSales.com (B2B Web Application) 

· Wireless Application for Ports and Harbors

Intelligent Security Solutions

GENERAL INFORMATION

Customers :

· General Motors

· Johnson Controls Inc.

· Ford

· Lear

· TRW

· Donnelly

· AP Government

· Colorado School District

· Sumitomo

· GE

· SAC

· Vetronix

· Visteon

· Clarity

· HMT

No. of Employees :

160

Bankers :

· The Dhanalakshmi Bank Limited

Banjara Hills Branch, Hyderabad, Andhra Pradesh, India

· HDFC Bank

Banjara Hills Branch, Hyderabad, Andhra Pradesh, India

Facilities :

Secured Loans	(As on 31.03.2008) Rs. in millions
Car loans from HDFC Bank Limited	0.509
The Dhanalakshmi Bank Limited	-
Total	0.509

Banking Relations :	-
Auditors :
Name :	A M Reddy and Company Chartered Accountants
Address :	10-5-6/A, “My Home Plaza” Off: 103, II Floor, Masab Tank, Hyderabad – 500 028, Andhra Pradesh, India
Subsidiaries :	Danlaw Technologies Inc., USA 23700, Research Drive, Farmington Hills, MI 48335-2624, USA

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3720300	Equity Shares	Rs.10/- each	Rs.37.203 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		37.203	37.203	37.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		278.206	279.540	275.700
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		315.409	316.743	312.900
LOAN FUNDS
1] Secured Loans		0.509	1.728	1.200
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.509	1.728	1.200
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		315.918	318.471	314.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.920	19.275	23.300
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		29.566	30.453	29.600
DEFERREX TAX ASSETS		18.956	20.352	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.086	8.551	12.700
	Sundry Debtors	66.878	52.082	33.800
	Cash & Bank Balances	66.765	95.304	91.600
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	22.410	17.208	43.000
Total Current Assets		169.139	173.145	181.100
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	23.138	25.078	6.500
	Provisions	0.000	0.000	0.600
Total Current Liabilities		23.138	25.078	7.100
Net Current Assets		146.001	148.067	174.000
MISCELLANEOUS EXPENSES		104.475	100.324	87.200
TOTAL		315.918	318.471	314.100

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Income from Operations		82.512	88.729	78.700
Other Income		5.597	6.263	5.900
Total Income		88.109	94.992	84.600
Profit/(Loss) Before Tax		0.273	1.212	6.300
Provision for Taxation		1.607	0.648	3.200
Profit/(Loss) After Tax		(1.334)	0.564	3.100
Earnings in Foreign Currency :		39.718	38.022	NA
Expenditures :
	Direct Cost	57.245	65.149	0.000
	Selling Expenses	5.712	5.778	0.000
	Administrative Expenses	21.029	18.775	15.800
	Manufacturing Expenses	0.000	0.000	20.600
	Employee Cost	0.000	0.000	38.200
	Increase/(Decrease) in Finished Goods	0.000	0.000	(3.100)
	Miscellaneous Expenses	0.000	0.000	0.300
	Interest	0.580	0.134	0.100
	Power & Fuel	0.000	0.000	1.400
	Depreciation & Amortization	3.270	3.944	5.000
Total Expenditure		87.836	93.780	78.300

QUARTERLY RESULTS

PARTICULARS	30.06.2008	30.09.2008
Type	1st Quarter	2nd Quarter
Sales Turnover	18.700	14.800
Other Income	1.500	1.400
Total Income	20.200	16.200
Total Expenditure	20.100	18.600
Operating Profit	0.100	(2.400)
Interest	0.000	0.200
Gross Profit	0.100	(2.600)
Depreciation	0.700	0.700
Tax	0.000	(0.800)
Reported PAT	(0.600)	(2.500)

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	(1.51)	0.59	3.66
Net Profit Margin (PBT/Sales)	(%)	0.33	1.37	8.01
Return on Total Assets (PBT/Total Assets}	(%)	0.15	0.63	3.08
Return on Investment (ROI) (PBT/Networth)		0.00	0.00	0.02
Debt Equity Ratio (Total Liability/Networth)		0.07	0.08	0.03
Current Ratio (Current Asset/Current Liability)		7.31	6.90	25.51

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Subject formerly known as Vijay growth Home Finance Limited was incorporated as a public limited company in Dec.'92. The company was promoted by Mr. D B Reddy and associates. 

In view of the increasing demand for housing finance the company plans to increase its operation substantially. Accordingly, in Mar.'96 the company came out with a public issue of 750000 Equity share of Rs.10 each for cash at par aggregating Rs 7.500 millions to strengthen and consolidated its capital base. 

During the year 1999-2000, the company commenced its operations as software company and started exports from December 1999. Due to the penetration of Information Technology becoming an engine of growth for all sectors of economy, the company is placing special emphasis on IT, e-commerce, internet and intranet applications to provide offshore software development for their global clientele. The company is also concentrating its efforts in the Automotive Sector for Embedded Software Development, Products for Automotive applications, product and integration testing and software verification. 

During the year 2000-01, company's sales is up by 190% annualised over the previous year. The company has two divisions, engineering and information technology.The Engineering Division is concentrating on development of software services and products for the Automotive Sector through Embedded Software Development. The division had plans to enter into the markets like Internet Appliances, Communications, Aerospace and Defence Software right from the beginning. 

The Company has started its services in the area of DSP (Digital Signal Processing) during April 2001. Also in view of the experience gained by the company under WBT (Web Based Technology), the company is considering the expansion into the area of Animation and Multimedia. 

The other division Information Technology, is successful in providing offshore software development to their US cliental. 

The IT industry making giant strides, has taken the country on the world map. The domestic software market, though expected to grow @ 32% during the current year, its cumulative annual growth rate is steadily improving to 46.8% as on the previous year. Similarly, the Indian Software Export industry also showed an impressive growth rate of 66% over the previous year. During the year 2001, a right combination of a technological mix has resulted in better performance by the company. The company plans to fix a business model that combines both products and services together in the right mix. The company has been updating technology to keep abreast with the latest developments around the world and committed to technological advancement. 

The company has realized the vision of becoming a dominant player in Indian Software Market. During the year 2000-01, the company has enhanced and upgraded its networks and moved up the value chain by providing new services like PALM TOP, DOTNET, WAP etc.

WHOLLY OWNED SUBSIDIARY

The Company has a wholly owned subsidiary in USA, Danlaw Technologies Inc. The financial statements of the said Company have been attached herewith for complying with the provisions of Section 212 of the Companies Act, 1956. 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT 

Industry Structure and Development

Subject has been in the business of providing a range of quality driven engineering and software services in the areas of embedded software engineering, information technology and project management. The Company is facing stiff competition from various IT majors since many Indian companies have expertise on embedded software development and they all are looking to move up the value chain. 

A recent Nasscom-Mckinsey study said that the domestic embedded systems market was geared to generate exports worth Rs.410000 millions by 2008. 

Subject endeavors to contribute to the growth story by using cutting edge technologies and by forging partnerships and alliances with world leaders. The Company envisions itself as a products Company that pioneers innovations. 

The key areas of focus of the Company are Engineering Software, Information Technology, Security Systems and Research and Development. 

Opportunities And Threats 

Opportunities

New budgetary allocation and new policies for the development of the Indian software industries and its allied sectors was a major focus area of budget 2008. The tax breaks and sops offered by Indian government for upcoming software firms has made India one of the most attractive markets for setting up Software shop. 

Threats, Risks and Concerns

The major area of concern for the software industry during the fiscal was the appreciation of Rupee and softening of in the US economy. The Company is constantly endeavoring to adopt the best methods to mitigate the threats and concerns, which are common to the IT industry in general. 

Performance and Outlook

The ISS division has grown from strength to strength and has posted an increase in the turnover by almost 45% when compared to the previous fiscal. 

The IT division of subject, in consortium with Wipro, has signed an agreement for Design, Development, Implementation and maintenance of Municipal Administration System for Kolkata Urban Services for Poor (KUSP), Government of West Bengal. The sales efforts are in progress for couple of states like Kerala, Karnataka, Maharashtra etc. for eMAS product. 

The Engineering Division primarily provides service to Automotive Customers. The services involve Software Development, Software Verification and Validation and Test Plan Development. Engineering division has also diversified development into other fields. 

Business Outlook

During the year, the Company has made significant progress in implementing initiatives aimed at meeting its long-term objectives. The Company has continued to strengthen its relationships with existing customers, while exploring new opportunities. The strategy to focus on where the Company enjoys a clear competitive advantage combined with new strategic alliances should enable the Company to deliver progressive performance and result in greater value creation for the Company's shareholders over the long term. 

Financial Performance

During the year the Paid up Share Capital of the Company as on date is Rs.3,72,03,000 comprising of 37,20,300 Equity Shares of Rs.10/- each. The Company hasn't gone for any issue of shares during the fiscal. 

The Company has dissolved its joint Venture, M/s. Danlaw CNA Systems Limited (entered into by the Company with M/s. CNA Group Limited and Mr. G V Subba Rao), and has divested its stake of 40% equity shares held in it at their face value. 

The Company has obtained a Non fund based facility of about Rs.6.000 millions. 

The exchange loss of Rs.2.570 millions as against the gain last year to the tune of Rs.0.462 millions has affected the earnings for the current fiscal. 

CONTINGENT LIABILITIES

The Company has outstanding counter guarantee of Rs.12.226 millions as at March 31, 2008, to various banks, in respect of guarantees given by the said banks in favour of bodies corporate to the extent of Rs.11.020 millions and Rs.1.205 millions to government authorities. The counter guarantees outstanding as at the previous year-end was Rs.90.468 millions and Rs.0.518 million respectively.

FIXED ASSETS

· Computers and Software

· Office Equipment

· Electrical Equipment

· Lab Equipment

· D G Set

· Elevator

· Air-conditioners

· Furniture and Fixtures

· Office Interiors

· Vehicles

WEB DETAILS

Subject envisions itself as a products company that pioneers innovations. Subject's high skill and geographic comparative advantage, coupled with its deep commitment to R and D, ensure that whatever is done is done the best and with great cost advantage. The who's who list of partners and customers testifies to this fact. Be it Embedded Solutions, DSP, Web Based Applications, Biometric Solutions. Subject has been assesed at the CMM Level 3. Subject stands out from among the rest. Subject means a commitment to do as never before!

About Company

Since its inception in 1984, Subject has been in the business of providing a range of quality driven engineering and software services to the customers in the areas of embedded software engineering, information technology and project management. 

Subject’s primary focus is to provide high value added services to corporate clients, help expand the operations and extend the resources on a global basis.  The clientele includes GM, Ford, Daimler Chrysler, Boeing, Stowe Woodward, TRW, Lear, XM, LG Electronics, GAP, Visteon, Holcim, Onstar and more.

With offices in the United States, India and China, and partnerships with IBM and Microsoft, Subject is able to offer each client the highest level of direct customer contact and cost effectiveness, while providing comprehensive solutions for the Automotive, Consumer, and Public Sectors.

They place special emphasis on in-house research and development to keep pace with rapidly changing technologies. The objectives have always been to gain leading-edge expertise, to formulate and design new methodologies for process improvement. Subject continues to excel in providing premium class engineering and IT services. The culture encourages a constant commitment from the employees to surpass  clients' expectations in the execution, quality, and delivery of every solution. 

Profile

The name "Danlaw" is a juxtaposition of "Dan" (from Dandu) and "Law" (from Lawrence), and reflects the shared vision, mission and goals of Mr. Raju S. Dandu and Mr. Lloyd R. Lawrence; the longstanding colleagues, friends and technocrats who jointly founded Danlaw Incorporated, in Michigan way back in 1984. Subject has been founded by Mr. Raju S. Dandu and his associates as offshore technology and product development center to give Danlaw group a 24x7 market presence in a high skills environment.

The Danlaw legacy bestowed on subject, an international presence, in-place quality processes and a network of stable relationships right at its inception. The guiding philosophy at subject is to constantly strive to move up the chain of technology and value, from services to products with strong R and D competence. This is the unambiguous roadmap of subject, constantly validated in its record of existence.

Subject is governed by an expert board of directors supported by a highly qualified management team, which in turn is supported by a world class HR, Finance, Secure Server Network Administration teams. Subject is presently engaged in four IT and Engineering activities, e.g. Research and Development, Engineering and Industrial Automation, Information Technology and Intelligent Security. All groups are headed by high-achievers in their respective fields in global markets.

· The Engineering Division provides embedded software and hardware solutions. Automotive software and services is one of the key focus areas for the division. The division has several products oriented towards Automotive Messaging Protocols.

· The IT division develops web-enabled services and products ranging from educational products for challenged school children to management of mega municipal information systems.

· The ISS Division serves the Intelligent Security needs for entry control into establishments and machines.

· The R and D supports development of new technologies in voice processing, identification and Communication. It has developed algorithms for echo cancellation, speech compression and modems, etc.

Core strength of subject is that development activities encompass complete project cycles from feasibility study to requirements, design, coding, testing, implementation and customization. This single-roof expertise has led to consolidation of existing partnerships and customers and arrival of new ones, which is reflected in the rate of activity expansion of the company as well as its financial strength. They are committed to keep it this way.

Sbject is a Public Limited Company. It is listed on the Hyderabad and Bombay Stock Exchanges. It is also registered as a 100% Export Oriented Unit under the Software Technology Parks of India, Hyderabad.

Engineering

The Engineering Division of subject, with significant strengths in embedded software, is focused on development of automotive software, particularly in the areas of messaging, diagnostics and testing. This division also develops products for testing and diagnostics in vehicles. It also customises and supports all DSP technologies and products.

Information Technology

Subject is a center with proven expertise and experience to provide complete, end-to-end solutions including system study, design, architecture, application development, installation, integration, implementation, maintenance and support.

Subject offers a range of products and services in the domains of:

· Customer Relation Management (CRM)

· Supply Chain Management (SCM)

· Data Warehousing and Mining Applications

· Portals, E-Commerce and E-Business Applications

· Enterprise Application Integration and

· Knowledge Management.

The division follows the best practices, including Rational Unified Process (RUP) Approach, in the various phases of product and project development lifecycle and project management.

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.49.69
UK Pound	1	Rs.72.96
Euro	1	Rs.63.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		31

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