MIRA INFORM REPORT

Report Date :

09.12.2008

IDENTIFICATION DETAILS

Name :	REGENT GRANITO INDIA LIMITED
Registered Office :	Block No 355 Opposite GEB Substation Near Sabar Dairy At and Po. Hajipur, N.H. No.8, District Sabarkantha, Himatnagar -383 120, Gujarat
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	10.10.2003
Com. Reg. No.:	04-043039
CIN No.: [Company Identification No.]	U26933GJ2003PLC043039
TAN No.: [Tax Deduction & Collection Account No.]	AHMR02678E
PAN No.: [Permanent Account No.]	AACCR5441B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Vitrified Tiles.

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 788000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Trade relations are fair. Business is active. Payments are reported as usually made as per commitments. The company can be considered good for normal business dealings.

INFORMATION PARTED BY

Name :	Mr. Manoj Patel
Designation :	Accounts Executive
Date :	06.12.2008

LOCATIONS

Registered Office/ Factory :	Block No 355 Opposite GEB Substation Near Sabar Dairy At and Po. Hajipur, N.H. No.8, District Sabarkantha, Himatnagar -383 120, Gujarat, India
Tel. No.:	91-2772-226247-48,226466-67
Fax No.:	91-2772-226247/ 226249/ 226468
E-Mail :	reg_bank@yahoo.com rgil_account@yahoo.com info@regentgranito.com
Website :	http://www.regentgranito.com
Area :	1100 acre
Location :	Owned
Branches :	Located at: Ahmedabad Indore Bangalore Jaipur Bhuvneshwar Kolkata Cochin Lucknow Calicut Mumbai Chennai Mohali Coimbatore Nagpur Delhi Pune Dehradun Secundrabad Goa Vijaywada Hubli

DIRECTORS

Name :	Mr. Kacharabhai R. Patel
Designation :	Managing Director
Address :	At – Rampur Nava, Post Ganthiol, Ta-Idar, District – Sabarkantha, Rampur Nava – 383 410, Gujarat, India
Date of Birth/Age :	15.04.1966
Date of Appointment :	10.10.2003
DIN or Income-tax PAN :	00075029
Name :	Mr. Tejas S. Gandhi
Designation :	Whole Time Director
Address :	C – 202, Chinmay Tower, Abhishek Row House, Vishrnu Bunglow, Memnagar, Ahmedabad – 380 052, Gujarat, India
Date of Birth/Age :	04.03.1972
Date of Appointment :	16.01.2006
DIN or Income-tax PAN :	00048130
Name :	Mr. Ramanbhai K. Patel
Designation :	Whole Time Director
Address :	At – Narshinpura, Post – Kukadiya, Tauka- Idar, District – Sabarkantha, Narshinpura – 383 430, Gujarat, India
Date of Birth/Age :	01.06.1951
Date of Appointment :	10.10.2003
DIN or Income-tax PAN :	00048159
Name :	Mr. Prakashchandra K. Tanted
Designation :	Managing Director
Address :	A/ 13-14, Ellora Park, Mahavirnagar, District – Sabarkantha, Himatnagar – 383 001, Gujarat, India
Date of Birth/Age :	13.05.1964
Date of Appointment :	10.10.2003
DIN or Income-tax PAN :	01244705
Name :	Mr. Arvindbhai K. Patel
Designation :	Director
Address :	At and Post – Laxmipura, Taluka – Khedbrahma, District - Sabarkantha, Laxmipura – 383 275, Gujarat, India
Date of Birth/Age :	27.08.1953
Date of Appointment :	25.11.2003
DIN or Income-tax PAN :	00048176
Name :	Mr. Karshanbhai H. Patel
Designation :	Director
Address :	145, At and Post – Daramali, Taluka, Idar, District - Sabarkantha, Daramali – 383 110, Gujarat, India
Date of Birth/Age :	01.06.1953
Date of Appointment :	25.11.2003
DIN or Income-tax PAN :	00048167
Name :	Mr. Harshadkumar D. Pathak
Designation :	Director
Address :	24, Vasantvihar Society, Sahkari Jin Road, Himatnagar – 383 001, Gujarat, India
Date of Birth/Age :	30.09.1967
Date of Appointment :	25.11.2003
DIN or Income-tax PAN :	00048135
Name :	Mr. Manubhai B. Patel
Designation :	Director
Address :	At and Post – Badarpura, Taluka – Idar, District – Sabarkantha, Badarpura – 383 430, Gujarat, India
Date of Birth/Age :	01.06.1964
Date of Appointment :	15.10.2006
DIN or Income-tax PAN :	00048144
Name :	Mr. Dipakkumar Patel
Designation :	Director
Address :	Laxmanpura, Goral, Taluka – Idar, S.K. Idar – 383 430, Gujarat, India
Date of Birth/Age :	01.07.1978
Date of Appointment :	15.04.2008
DIN or Income-tax PAN :	01456602
Name :	Mr. Shantilal Patel
Designation :	Director
Address :	Hajipura, Himatnagar, Sabarkantha, Himatnagar – 383 120, Gujarat, India
Date of Birth/Age :	11.09.1954
Date of Appointment :	15.04.2008
DIN or Income-tax PAN :	02260031

KEY EXECUTIVES

Name :	Ms. Seema Patel
Designation :	Company Secretary
Address :	26, Rajpath Raw House, Opposite Rajpath Club, Bodakdev, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	21.04.1965
Date of Appointment :	01.07.2006
DIN or Income-tax PAN :	ADGPP9854Q

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2007

Names of Shareholders	No. of Shares
Kacharabhai Patel	153725
Manubhai Patel	164858
Prakashchandra K. Tated	170000
Hashmukhbhai Patel	161965
Karshanbhai Patel	143000
Ashvinbhai Patel	133000
Bhikhabhai Patel	160730
Haribhai Patel	105000
Lilachandbhai Patel	102000
Prahaladbhai Shah	207500
Rajendrabhai Patel	126800
Ramnivas Kabra	124300
Shantubhai Patel	173780
Harshadbhai Patel	142000

As on 28.09.2007

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	2.38
Directors or relatives of directors	29.31
Other top fifty shareholders	48.82
Others	19.49
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Vitrified Tiles.

Products :

Item Code No. (ITC Code)	69010030
Product Description	Vitrified Tiles

Terms :

Selling :

Cash and Credit

Purchasing :

Cash

PRODUCTION STATUS As on 31.03.2007

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Vitrified Tiles	NA	5000 Sq. Mtr. Per Day	1058037 box

GENERAL INFORMATION

Customers :

Wholesalers, Retailers, Dealers and Distributors

No. of Employees :

1000

Bankers :

• State Bank of India, Commercial Branch, 3^rd Floor, Paramsidhi Complex, Opposite V.S. Hospital, Ellisbridge, Ahmedabad – 380 006, Gujarat, India
• ICICI Bank Limited
• Axis Bank Limited
• HDFC Bank Limited

Facilities :

Secured Loans :

	As on 31.03.2007 Rs. in Millions
Term Loan – Hypothecation of Plant and Machinery etc. S.B.I. Term Loan 10301061253	59.079
S.B.I. Term Loan 10301057043	0.584
S.B.I. Term Loan A/c No.3	35.100
Vehicle Loan	0.463
Working Capital Loans From Bank S.B.I. CC Himatnagar	4.100
S.B.I. CC Ahmedabad	101.015
Total	200.341

Unsecured Loans :

	As on 31.03.2007 Rs. in Millions
From Corporate	5.000
From Shareholders	5.042
From Trade Deposits	2.602
From Directors	0.082
From others	14.075
Total	26.801

Banking Relations :	Satisfactory
Auditors :
Name :	K.K. Patel and Associates Chartered Accountants
Address :	F-51, 2^nd Floor, Akash Ganga Complex, Near S.T. Stand, Himatnagar – 383 001, Gujarat, India
Tel. No.:	91-2772-240499
Mobile No.:	91-9898044121
E-Mail :	kamleshpatel74@hotmail.com
Associates/Subsidiaries :	Classic Microtek Private Limited Address: Near to Regent Granito Line of Business: Manufacturer of Raw Material for Polishing tiles

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
8500000	Equity Shares	Rs.10/- each	Rs.85.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 millions
347175	Equity Shares	Rs.10/- each	Rs.3.472 millions
			Rs.83.472 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2008 (Approximately)
Sales Turnover (Estimated)	110.000

Expected Sales (2008-09): Rs.70.000 millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		83.472	80.000	80.000
2] Share Application Money		2.216	0.000	0.000
3] Reserves & Surplus		71.913	37.187	15.106
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		157.601	117.187	95.106
LOAN FUNDS
1] Secured Loans		200.341	170.109	148.848
2] Unsecured Loans		26.801	24.839	23.074
TOTAL BORROWING		227.142	194.948	171.922
DEFERRED TAX LIABILITIES		9.259	10.204	8.406
TOTAL		394.002	322.339	275.434
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		126.899	143.682	163.453
Capital work-in-progress		93.548	0.000	0.000
		286.515	236.705	166.134
INVESTMENT		0.030	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
		506.992	380.387	329.587
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	134.575	113.511	73.645
	Sundry Debtors	52.682	88.521	69.792
	Cash & Bank Balances	14.104	15.607	5.296
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	85.154	19.066	17.401
Total Current Assets		286.515	236.705	166.134
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	87.305	39.947	52.617
	Provisions	27.756	18.449	2.000
Total Current Liabilities		115.061	58.396	54.617
Net Current Assets		171.454	178.309	111.517
MISCELLANEOUS EXPENSES		2.071	0.348	0.464
TOTAL		394.002	322.339	275.434

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		515.080	449.562	153.275
Other Income		3.287	2.704	0.610
Total Income		518.367	452.266	153.885
Profit/(Loss) Before Tax		30.395	32.479	25.512
Provision for Taxation		9.555	10.398	10.406
Profit/(Loss) After Tax		20.840	22.081	15.106
Imports :
	Raw Materials	20.566	29.775	NA
	Stores & Spares	14.856	15.022	NA
	Capital Goods	50.636	0.000	NA
Total Imports		86.058	44.797	NA
Expenditures :
	Raw Material Consumed	116.099	122.994	48.540
	Purchases made for re-sale	1.765	0.000	0.000
	Consumption of stores and spares parts	31.637	38.028	14.972
	Increase/(Decrease) in Finished Goods	(3.929)	(31.714)	(53.009)
	Salaries, Wages, Bonus, etc.	20.571	14.898	3.435
	Managerial Remuneration	0.000	0.000	0.280
	Payment to Auditors	0.050	0.025	0.044
	Interest	16.971	14.194	8.331
	Insurance Expenses	0.554	0.597	0.273
	Power & Fuel	41.344	37.387	52.416
	Depreciation & Amortization	21.090	23.893	13.201
	Other Expenditure	241.820	199.485	39.890
Total Expenditure		487.972	419.787	128.373

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	4.02	4.88	9.82
Net Profit Margin (PBT/Sales)	(%)	5.90	7.22	16.64
Return on Total Assets (PBT/Total Assets}	(%)	6.00	8.54	7.74
Return on Investment (ROI) (PBT/Networth)		0.19	0.28	0.27
Debt Equity Ratio (Total Liability/Networth)		2.17	2.16	2.38
Current Ratio (Current Asset/Current Liability)		2.49	4.05	3.04

LOCAL AGENCY FURTHER INFORMATION

This form is for	Modification of charge
Charge identification number of the modified	90106975
Corporate identity number of the company	U26933GJ2003PLC043039
Name of the company	REGENT GRANITO INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	Block No 355 Opposite GEB Substation Near Sabar Dairy At and Po. Hajipur, N.H. No.8, District Sabarkantha, Himatnagar -383 120, Gujarat, India
Type of charge	Immovable Property
Particular of charge holder	State Bank of India, Commercial Branch, 3^rd Floor, Paramsidhi Complex, Opposite V.S. Hospital, Ellisbridge, Ahmedabad – 380 006, Gujarat, India E-Mail: rajesh.nalanda@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Memorandum of Deposit for creation extention of charge for overall limit granted to Regent Grantio (India) Limited.
Date of instrument Creating the charge	08.07.2008
Amount secured by the charge	Rs.465.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 1. Additional term loan of Rs.135.000 millions – 1.00% below SBAR i.e. minimum 10.00% p.a. with monthly rests with reset after two years. 2. Cash Credit limit of Rs.190.000 millions – 0.50% below SBAR i.e. minimum 10.50% p.a. at monthly rests. 3. Letter of Credit and Bank Guarantee – As per Bank Norms. Terms of Repayment: Additional term loan of Rs.135.000 repayable in 20 equal quarterly installments of Rs.6.750 millions each commencing from 01.04.2008. Margin: 1. On Raw Material, Stock in process and Finished Goods – 25% 2. On Letter of credit and Bank Guarantee – 15% 3. On additional term loan – 32.84% On Receivable (Cover period 90 days) – 50% Extent and Operation of the charge: Exclusive first charge on all current assets, movable assets and Immovable assets of the company.
Short particulars of the property charged	Entire current assets, movable assets and immovable properties of the company situated at (1) Block No.355, Village Hajipur, Taluka Himatnagar, District Sabarkantha (Gujarat) and Block/ Survey No. 312, Village Hajipur, Taluka Himatnagar, District Sabarkantha(Gujarat) together with building and other structure, erection thereon.
Date of latest modification prior to the present modification	29.12.2006

TRADE REFERENCES:

• Euro Ceramic – Junagardh
• Vilas Steel Private Limited – Nadiad

FIXED ASSETS:

• Land
• Factory Building
• Plant and Machinery
• Gasifier
• Computer
• Furniture and Fixture
• Vehicle
• Office Equipments
• Electric Installation

OPERATION:

The Directors are to inform that as compared to the previous year, the turnover of the company for the year increased from Rs.449.562 millions to Rs.515.080 millions registering a growth of 14.57% over the previous year. During the year the company has earned Net Profit of Rs.20.839 millions as against the Net Profit of Rs.22.081 millions in the previous year. Reduction in net profit which was mainly due to products rate reduction pressure on account of tough market competition.

The Directors are to inform that the company has started commercial operation of the expansion project w.e.f. 26.06.2007. Barring unforeseen circumstance, the Directors are to achieve better financial performance in the coming years.

FINANCE:

The Directors are to inform that in the month of December, 2006, State Bank of India has sanctioned to the Company various additional credit facilities viz. Term Loan of Rs.135.000 millions, Cash Credit Limit of Rs.65.000 millions, Foreign/ Inland L.C. Limit of Rs.30.000 millions and Bank Guarantee of Rs.20.000 millions over existing credit facilities of Rs.215.000 millions to part finance the cost of expansion project. During the Financial Year authorized share capital of the Company increased by Rs.5.000 millions from Rs.80.000 millions to Rs.85.000 millions.

OVERALL PICTURE OF THE INDUSTRY

Ceramic tiles as a product segment have grown to a sizeable chunk today at 3.8 million tons production per annum. However, the potential seems to be great, particularly as the housing sector retails sector, IT and BPO sectors have been witnessing an unprecedented boom in recent years. The ceramic tiles sector has been clocking a robust growth of 12-15 % consistently over the last few years. Today, India figures in the top 7 countries in the world manufacturing ceramic tiles.

The key drivers for the ceramic tiles in India are the boom in housing sector coupled by government policies fuelling strong growth in housing sector. The retail boom in the Indian economy has also influenced the demand for higher end products. Overall the bullish growth estimates in the Indian economy has significantly influenced the growth of the Indian Ceramic tile industry.

The main product segments are the Wall tile, Floor tile, Vitrified tile and Porcelain tile segments. The market shares are 35%, 53% and 12% respectively for Wall, Floor and Vitrified/Porcelain tiles. The tiles are available in a wide variety of designs, textures and surface effects. They cater to tastes as varied from rustics to contemporary marble designs in super glossy mirror finishes.

The investments in the last five years are approx. Rs.20000 millions. The industry also enjoys the unique distinction of being highly indigenous with an abundance of raw materials, technical skills, infrastructural facilities despite being fairly capital intensive. A total of over 5,50,000 people are employed in the sector. Out of this, 50,000 people are directly employed and 5,00,000 are indirectly associated. The potential is huge considering the per capita consumption of ceramic tiles in India. Currently it is at 0.30 square meters per person in comparison to over 2 square meters per person for like countries like China, Brazil and Malaysia

The ceramic tiles industry in India has followed similar trends internationally which have been characterized by excess capacities and falling margins. Countries like Malaysia, Thailand, Indonesia, Sri Lanka and Vietnam are setting up their own plants. China has emerged as a major competitor. Producers from Spain and Italy have the advantage of lower transportation costs while exporting to USA and Germany. In India, the per capita consumption is as low as 0.30 square meters per person compared to China (2 square meters per person), Europe (5 to 6 square meters per person) or Brazil (2.5 square meters per person). Rising disposable incomes of the growing middle class and 40 million units of housing shortage hold out a great potential.

A major change that took over the ceramic tiles industry, was the introduction of vitrified and porcelain tiles. These new entrant product types are said to be the tiles of the future. Internationally these tiles are already the major sellers. These category of products account for 13% of all organized sales in this industry.

These new products and the conventional wall and floor tiles have together made the organized industry grow to a formidable Rs.30000 millions industry. This coupled with a spate of expansions by many players make the industry look very promising in the future.

The Indian Industry has developed an export market although at the lower end. In volume it constitutes less than half a percent of the global market. (Presently India does not figure in the list of major exporting countries). But this reality could change as Indian exports are rising at the rate of 15% per annum. The top-end of the global export market is presently dominated by Italy (40.8%) and Spain (26.4%).

(Source: Compiled using information from Corporate Catalyst India, ASCER and other associations.)

WEBSITE DETAILS:

Subject has got a hi-tech plant, located at Himatnagar, 70 kms away from Ahmedbad. This state of the art plant has capacity to produce approx. 14000 sq.mt of vitrified tiles everyday.

Subject has got all world class technologies from different parts of the globe available for ceramic industries. Subject has started manufacturing 605mm x 605mm size of vitrified tiles in 2004 which was also equipped by 4280 MT Hydraulic Press, Longest Kiln at that time and superior policing machine.

Now Subject has added manufacturing capacity by installing world's latest innovative technology which is going to produce 990mm x 990mm and worlds biggest slab size tile 2100mm x 1000mm. They have got specially designed and developed hydraulic press PH6200 and multi layer fast drying machine from SACMI Italy. This machine is supported by longest roller kiln, which is 200 MT long and 48 head policing line.

Now Subject has become only manufacturer of 2100mm x 1000mm size of vitirified tile in the world. This product is capable to replace natural marble and granite product across the globe. Subject it committed to supply best quality of tiles in the Indian and overseas market and it is already proven in Indian market for last three years. And now with the new blend of technologies they will be much stronger in the market to supply quality and innovative tiles.

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.49.22
UK Pound	1	Rs.73.03
Euro	1	Rs.63.14

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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