MIRA INFORM REPORT

Report Date :

13.12.2008

IDENTIFICATION DETAILS

Name :	CITY TILES LIMITED
Registered Office :	At and Post - Dalpur, Ceramic City, Katwad Road, TA – Prantij, Prantij – 383 120, Gujarat
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	20.08.2002
Com. Reg. No.:	04-41142
CIN No.: [Company Identification No.]	U26941GJ2002PLC041142
TAN No.: [Tax Deduction & Collection Account No.]	AHMC01281A
Legal Form :	A Closely held Public Limited Liability Company.
Line of Business :	Manufacturer and exporter of Vitrified and Ceramic 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 1500000
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 for business dealings.

LOCATIONS

Registered Office :	At and Post - Dalpur, Ceramic City, Katwad Road, TA – Prantij, Prantij – 383 120, Gujarat
Tel. No.:	91-2770-240410 / 240629
Fax No.:	91-2770-240706
E-Mail :	info@citytilesltd.com citytiles@citytilesltd.com rajeshpatel@citytilesltd.com citytiles@yahoo.co.in
Factory :	A/502, Status Tower, Drive in Road, Thaltej, Ahmedabad – 380 054, Gujarat, India
Tel. No.:	91-2770-240410 / 240701 / 26462399 / 91-79-26462399
Fax No.:	91-2770-240706 / 240701/2/3/4
E-Mail :	info@citytilesltd.com citytiles@yahoo.co.in

DIRECTORS

Name :	Mr. Kacharabhai Shankarbhai Patel
Designation :	Director
Address :	At – Suryanagar Kampa, P O Mudeti, TA – IDAr, District- Sabarkantha, Suryanagar Kampa – 383450, Gujarat, India
Date of Birth/Age :	16.08.1954
Date of Appointment :	01.05.2006
Name :	Mr. Ramanbhai Nathabhai Patel
Designation :	Director
Address :	At – Suryanagar Kampa, P O Mudeti, TA – IDAr, District- Sabarkantha, Suryanagar Kampa – 383450, Gujarat, India
Date of Birth/Age :	20.11.1964
Date of Appointment :	01.05.2006
Name :	Mr. Prabhubhai Dhulabhai Patel
Designation :	Director
Address :	At – Pruthvipura, TA IDAR, District Himmatnagar, Pruthvipura – 383 430, Gujarat, India
Date of Birth/Age :	01.01.1952
Date of Appointment :	01.05.2006
Name :	Mr. Revabhai Danjibhai Patel
Designation :	Director
Address :	1 Yogi Parivar, Kanknol Road, Mahavirnagar, Himatnagar, Sabarkantha – 383 001, Gujarat, India
Date of Birth/Age :	01.08.1954
Date of Appointment :	20.08.2002
Name :	Mr. Rameshbhai Laxmanbhai Patel
Designation :	Director
Address :	3 Yogi Parivar, Kanknol Road, Mahavirnagar, Himatnagar, Sabarkantha – 383 001, Gujarat, India
Date of Birth/Age :	24.06.1964
Date of Appointment :	20.08.2002
Name :	Mr. Prafulkumar Devchandbhai Patel
Designation :	Director
Address :	2 Yogi Parivar, Kanknol Road, Mahavirnagar, Himatnagar, Sabarkantha – 383 001, Gujarat, India
Date of Birth/Age :	15.10.1965
Date of Appointment :	20.08.2002
Name :	Mr. Jashubhai Amichandbhai Patel
Designation :	Director
Address :	5 Yogi Parivar, Kanknol Road, Mahavirnagar, Himatnagar, Sabarkantha – 383 001, Gujarat, India
Date of Birth/Age :	13.12.1977
Date of Appointment :	20.08.2002
Name :	Mr. Mahendrakumar Shankerlal Patel
Designation :	Director
Address :	06 Yogi Parivar, Kanknol Road, Mahavirnagar, Himatnagar, Sabarkantha – 383 001, Gujarat, India
Date of Birth/Age :	10.12.1958
Date of Appointment :	20.08.2002
Name :	Mr. Daksheshkumar Vasantlal Raval
Designation :	Director
Address :	At and Post Nava Bhavnath, Ta. Bhiloda, Sabarkantha – 383 001, Gujarat, India
Date of Birth/Age :	26.12.1968
Date of Appointment :	20.08.2002
Name :	Mr. Bharatbhai Laxmanbhai Patel
Designation :	Director
Address :	04 Yogi Parivar, Kanknol Road, Mahavirnagar, Himatnagar, Sabarkantha – 383 001, Gujarat, India
Date of Birth/Age :	08.06.1970
Date of Appointment :	20.08.2002
Name :	Mr. Pravinbhai Amichandbhai Patel
Designation :	Director
Address :	06 Yogi Parivar, Kanknol Road, Mahavirnagar, Himatnagar, Sabarkantha – 383 001, Gujarat, India
Date of Birth/Age :	16.12.1980
Date of Appointment :	24.09.2002

KEY EXECUTIVES

Name :	Mr. Maneklal Patel Shivabhai
Designation :	Secretary
Address :	6/72, Gokul Apartment, Sola Road, Naranpura, Ahmedabad – 380 063, Gujarat, India
Date of Birth/Age :	18.07.1939
Date of Appointment :	01.02.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 15.09.2008:

Names of Shareholders		No. of Shares
Mr. Rameshchandra Laxmanbhai Patel		727600
Mr. Revabhai Danjibhai Patel		625800
Mr. Prafulkumar Devchandbhai Patel		586050
Mr. Jasvantbhai Amichandbhai Patel		734900
Mr. Mahendra Kumar Shankarbhai Patel		510600
Mr. Daxeshkumar Vasantbhai Raval		402750
Mr. Bharatbhai Laxmanbhai Patel		707816
Mr. Amichandbhai Valjibhai Patel		383500
Mr. Amrutbhai Kodarbhai Patel		85850
Mr. Amrutbhai Girdharbhai Patel		220450
Mrs. Arunaben Kodarlal Patel		68900
Mr. Bhaveshbhai Kacharabhai Patel		10000
Mr. Bipinbhai Maganbhai Patel		42550
Mr. Daljibhai Danjibhai Patel		44350
Mrs. Daxaben Jashubhai Patel		76850
Mrs. Daxaben Prakashbhai Patel		18800
Mr. Devchandbhai Girdharbhai Patel		91100
Mr. Dineshbhai Kantibhai Patel		74310
Mr. Gaurishankar Dhulabhai Patel		111125
Mrs. Gitaben Rameshchandra Patel		130654
Mr. Harshadbhai Laljibhai Patel		50000
Mr. Ishwarbhai Dhulabhai Patel		242188
Mrs. Jamnaben Virchandbhai Patel		14000
Mrs. Jasubhai Badarbhai Patel		80000
Mr. Jayantibhai Chaganbhai Patel		75950
Mr. Kacharabhai Shankarbhai Patel		164900
Mrs. Kalpanaben Prafulbhai Patel		25000
Mrs. Kantaben Prafulbhai Patel		27000
Mr. Kantibhai Shankarbhai Patel		87000
Mrs. Kapilaben Laxmanbhai Patel		54000
Mr. Kesharbhai Chaganbhai Patel		56850
Mr. Kodarbhai Lavjbhai Patel		77950
Mr. Kumudbhai Lavjibhai Patel		123500
Mr. Lavjibhai Savjibhai Patel		19600
Mr. Laxmanbhai Dhulabhai Patel		303288
Mrs. Manguben Jayantibhia Patel		5000
Mr. Manishbhai Kacharabhai Patel		42500
Mr. Narsibhai Bahcherbhai Patel		85000
Mr. Narsibhai Hirabhai Patel		76000
Mr. Nathabhai Girdharbhai Patel		150450
Mr. Pankajbhai Virchandbhai Patel		77475
Mr. Parichaybhai Danjibhai Patel		48800
Mr. Prabhudas Dhulabhai Patel		17900
Mr. Prakashbhai Danjibhai Patel		63350
Mr. Prakashbhai Sankabhai Patel		36000
Mr. Pravinbhai Amichandbhai Patel		772978
Mr. Punjiben Kesharbhai Patel		8500
Others		3780866
	Total	12220000

AS ON 30.09.2008

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		75.55
Other top fifty shareholders		23.81
Others		0.64
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and exporter of Vitrified and Ceramic Tiles.

PRODUCTION STATUS (As on 31.03.2008):-

Ceramic Glazed Floor Tiles

Particulars	2007 - 2008
Installed capacity (In Boxes)
Quantitative Particulars in respect of finished goods manufactured and sales	Quantity (In Boxes)	Rs. (In Millions)
Opening Stock	191164	23.413
Production	1819281	---
Sales	1755893	270.178
Closing Stock	254552	28.535

Vitrified Tiles

Particulars	2007 - 2008
Installed capacity (In Boxes)
Quantitative Particulars in respect of finished goods manufactured and sales	Quantity (In Boxes)	Rs. (In Millions)
Opening Stock Boxes Pieces	196373 81	79.003 ---
Production Boxes Pieces	1195772 18435	---
Sales Boxes Pieces	1211706 13658	481.550
Closing Stock Boxes Pieces	180439 4858	66.333

GENERAL INFORMATION

Bankers :

State Bank of India, Commercial Branch, Param Siddhi Complex, Ellisbridge, Ahmedabad – 380 006, Gujarat, India

Facilities :

Secured Loans	31.03.2008 (Rs. In Millions)
Term Loans – From State Bank of India	6.056
Term Loans – From State Bank of India (Vitrified Plant Expan)	37.819
Term Loans – From State Bank of India (Vitrified plant)	127.390
Corporate team Loan-From State Bank of India	10.000
Term Loan Secured Against Equitable mortgage of land and Building and Hypothecation of imported and indigenous Plant and Machineries
State Bank of India (Ahmedabad) – Cash Credit	158.886
State Bank of India (Himatnagar) – Cash Credit	9.954
Secured Against Equitable mortgage of land and Building and Hypothecation of inventories and Book Debts
Vehicle Loans secured against HP of Vehicles
Kotak Mahindra Bank Limited	0.847
HDFC Bank Limited	0.210
ICICI Bank Limited	1.718
TML Financial Services Limited	0.392
Total	353.272

Unsecured Loans	31.03.2008 (Rs. In Millions)
Inter Corporate Deposit	7.700
Directors / Shareholders	13.201
Dealers Deposits	29.384
Others	12.248
Total	62.533

Banking Relations :

Satisfactory

Auditors :

Name :

Deepak R Soni and Company

Chartered Accountants

Address :

Opposite Shree Swaminarayan Temple, Near Gandhi Road, Himatnagar- 383 001, Gujarat, India

Tel. No.:

91-2772-242780

E-Mail :

deepak_soni11@yahoo.com

Associates/Subsidiaries :

Nil

CAPITAL STRUCTURE

AS ON 31.03.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
12220000	Equity Shares	Rs. 10/- Each	Rs. 122.200 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12220000	Equity Shares	Rs. 10/- Each	Rs. 122.200 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		122.200	122.200	100.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		170.353	95.698	60.069
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		292.553	217.898	160.069
LOAN FUNDS
1] Secured Loans		353.276	314.135	251.700
2] Unsecured Loans		62.535	80.273	34.514
TOTAL BORROWING		415.811	394.408	286.214
DEFERRED TAX LIABILITIES		24.119	20.008	11.488
TOTAL		732.483	632.314	457.771
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		385.507	378.353	371.865
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	169.639	195.637	74.793
	Sundry Debtors	188.886	93.597	39.634
	Cash & Bank Balances	5.886	9.849	3.580
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	88.680	35.127	46.759
Total Current Assets		453.091	334.210	164.766
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	84.564	76.991	80.397
	Provisions	22.421	5.661	0.000
Total Current Liabilities		106.985	82.652	80.397
Net Current Assets		346.106	251.558	84.369
MISCELLANEOUS EXPENSES		0.870	2.403	1.537
TOTAL		732.483	632.314	457.771

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		754.381	545.344	237.385
Other Income		0.399	2.516	0.457
Total Income		754.780	547.860	237.842
Profit/(Loss) Before Tax		95.984	50.059	38.788
Provision for Taxation		21.142	14.431	4.697
Profit/(Loss) After Tax		74.842	35.628	34.091
Export Value		1.929	1.539	NA
Import Value		27.260	38.826	NA
Expenditures :
	Manufacturing Expenses	311.982	265.068	111.462
	Administrative Expenses	79.074	84.613	8.774
	Raw Material Consumed	178.990	183.786	60.316
	Purchases made for re-sale	2.606	NA	NA
	Increase/(Decrease) in Finished Goods	11.389	[95.664]	[5.037]
	Interest	41.289	33.240	7.979
	Depreciation & Amortization	33.354	26.644	15.448
	Other Expenditure	0.113	0.113	0.112
Total Expenditure		658.797	497.800	199.054

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	9.92	6.50	14.33
Net Profit Margin (PBT/Sales)	(%)	12.72	9.18	16.34
Return on Total Assets (PBT/Total Assets}	(%)	11.45	7.03	0.07
Return on Investment (ROI) (PBT/Networth)		0.33	0.23	0.24
Debt Equity Ratio (Total Liability/Networth)		1.78	2.19	2.29
Current Ratio (Current Asset/Current Liability)		0.42	4.04	2.05

LOCAL AGENCY FURTHER INFORMATION

Operations:-

During they era, the company has achieved a Turnover of Rs. 751.728 millions as against Rs. 545.345 millions in the previous year. Registering growth of 37.84%. During the year, the company earned net profit of Rs. 74.842 millions as against net profit of Rs. 35.629 millions as the previous year. The higher net profit during the year is because of cost reduction measures taken by the Management. The basic input cost has been reduced on account of change in body consumption of raw tiles, labour cost has also been reduced on account of change in body composition of raw tiles, labour cost has also been reduced by change in colour and layer parameters of packing boxes.

During the year the company has opened its own show rooms in Metro and other Mega cities of the country to boost its sales. The company organizes regular meets of dealers, Architects and Participates in various trade exhibitions in the country.

During the year the company has undertaken expansion project to enhance capacity of Vitrified Tiles plant from 1.600 millions Boxes per Annum to 2.400 millions Boxes per annum at a total cost of project of Rs. 500 millions.

The Civil work has already been completed. Major Machineries have already delivered and are under installation. The Directors are hopeful to start commercial operation of expansion project 2^nd week of October, 2008. The company has acquired 14 acres Land for future expansion performance in the coming years.

During they ear, the company has launched new product viz., double charge, through and through, whole body, strain proof, laser series, cat wood in Vitrified tiles and Ceramic Tiles of 24 x 24 inch, 26 x 26 inch and 1 mtr. By 1 mtr and 4mtr by 3mtr

Exports

During the company has made export of Vitrified and Ceramic tiles to Maldives, Dubai, USA. The company is receiving good export enquiries and the company expects to improve export sales in the coming years.

Finance

In the month of February, 2008 State Bank of India has sanctioned to the company various additional credit facilities viz., Cash Credit Limit of Rs. 50.000 millions, Term Loan of Rs. 270.000 millions (sub limit of one time Foreign / Inland L/C Limit of Rs. 200 millions with an overall limit of Term Loan) and Bank Guarantee of Rs. 30 millions, over various existing credit facilities of Rs. 500 500 millions

Contingent Liabilities:

In view of the According Standard issued by ICAI Provision and Contingent Liabilities (AS - 29), Following Contingent Liabilities have been identified which have not been provided for in the Book of Accounts:

Bank guarantee issued by State Bank of India, Commercial Branch Ahmedabad in favour of GSPCL of Rs. 20.000 millions for purchase of LNG and transmission of Gas to our factory.

Bank guarantee issued by State Bank of India, Commercial Branch, Ahmedabad in favour of commissioner of VAT, Delhi of Rs. 0.100 million for Vat Tax Registration

Bank guarantee issued by State Bank of India, Commercial Branch, Ahmedabad in favour of Trade Tax Officer, Lucknow, Uttar Pradesh of Rs. 0.005 million for VAT Tax Registration.

Bank guarantee issued by State Bank of India, Commercial Branch, Ahmedabad in favour of Commercial Tax Officer, Lucknow, Rudrapur, Uttaranchal of Rs. 0.100 million for VAT Tax Registration.

Bank guarantee issued by State Bank of India, Commercial Branch, Ahmedabad in favour of The Asst. Commissioner, Ernakulam, of Rs. 0.008 millions for VAT Tax Registration.

FIXED ASSETS:-

· Land

· Factory Buildings

· Office and other Buildings

· Plant and Machinery

· Vehicles

· Furniture and Fixtures

· Computer

FORM 8:-

Corporate identity number of the company	U26941GJ2002PLC041142
Name of the company	CITY TILES LIMITED
Address of the registered office or of the principal place of business in India of the company	A/502, Status Tower, Drive in Road, Thaltej, Ahmedabad – 380 054, Gujarat, India
This form is for	Modification of charge
Type of charge	Immovable Property
Particular of charge holder	State Bank of India, Commercial Branch, Param Siddhi Complex, Ellisbridge, Ahmedabad – 380 006, Gujarat, India E-Mail: rajesh.nalanda@sbi.co.in
Nature of instrument creating charge	Memorandum of deposit for creation of further charge for in W.C Facilities and Term loan overall limit where the initial charge is created by way of mortgage by deposit of titles deeds.
Date of instrument Creating the charge	19.02.2008
Amount secured by the charge	Rs.855.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest ; For Cash Credit: At State Bank Advance Rate (PLR) present rate will be 12.75% p.a at monthly rests. For Term Loan of Rs. 270.000 millions : at SBAR i.e. 12.75% p.a with monthly rests For Letter of credit: As per bank’s Standard Charges. Terms of Repayment: For Cash Credit :On Demand For Term Loan (Fresh) Rs. 270.000 millions sixty monthly installments (Rs. 2.000 millions for three month, Rs. 4.000 millions for 24 months, Rs. 4.500 millions for 12 months, Rs. 5.000 millions for 12 months and Rs. 6.000 millions for 9 months) Margin: For Cash Credit : RM Domestic :30 % rM Imported “25 % Stock in Process: 30%, Finished goods : 25% , Receivables (90 days) : 50% Letter of Credit : 15% and bank guarantee : 15% For Term Loan : Overall Term Loan Margin: 28.06% Extent and Operation of the charge: The Charge operates as first charge
Short particulars of the property charged (Including location of the property)	First and exclusive on the immovable properties of the company comprising of and buildings and erections thereon (both present and future Situated at Survey No. Old Block No. 121 Paikee (consolidated New Block No. 121/P-2) and Old Block No. 134-A and 121 Paikee -1 (Consolidated New Block No. 121/P-1) Village Dalpaur, Taluka – Pranjit , District , Sabarkantha.

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.48.71
UK Pound	1	Rs.72.85
Euro	1	Rs.64.70

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