MIRA INFORM REPORT

Report Date :

16.01.2008

IDENTIFICATION DETAILS

Name :	BHARAT SHELL LIMITED
Registered Office :	Vardhaman Chambers, 1st Floor, Plot No.84, Sector 17, Vashi, Navi Mumbai – 400705, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	06.09.1993
Com. Reg. No.:	142782
CIN No.: [Company Identification No.]	U23201MH1993PLC142782
TAN No.: [Tax Deduction & Collection Account No.]	MUMB06889B
Legal Form :	Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Liquid or gaseous fuels – Lubricants, Base Oil, Bitumen

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 2976400
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Their trade relations are reported as fair. Business is active. Payments are usually correct as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Vardhaman Chambers, 1st Floor, Plot No.84, Sector 17, Vashi, Navi Mumbai – 400705 Maharashtra, India
Tel. No.:	91-22-27893888
Fax No.:	91-22-27893847
E-Mail :	info@bharashell.com
Website :	http://www.bharatshell.com
Sales and Marketing Office:	3rd Floor, Tower-A, B-37, Sector 1, Gautam Budh Nagar, Noida - 201301. Uttar Pradesh, India
Tel. No.:	91-120-2445001
Fax No.:	91-120-2445010
Factory 1 :	Plot T5, MIDC, Taloja Raigad – 410208, Maharashtra, India
Tel. No.:	91-22-27402022
Fax No.:	91-22-27410799

DIRECTORS

Name :	Mr. Vikram Singh Mehta
Designation :	Chairman
Address :	18, friends Colony, West, New Delhi – 110063
Date of Birth/Age :	30.10.1952
Date of Appointment :	29.09.1999
Name :	Mr. Nandkumar Kongot Unni
Designation :	Managing Director
Address :	Friends Colony West, A – 36, New Delhi – 110065
Date of Birth/Age :	15.11.1954
Date of Appointment :	01.08.2002
Name :	Mr. Ashok Sinha
Designation :	Director
Address :	1 – A, Altamount Road, Flat No – 32, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	15.02.1952
Date of Appointment :	14.12.1999
Name :	Sarthak Behuria
Designation :	Director
Address :	Flat No 32, A – 1, Altamount Road, Mumbai – 400036, Maharashtra, India
Date of Birth/Age :	02.03.1952
Date of Appointment :	17.06.1998
Name :	Mr. sanjay Krishnamurty
Designation :	Director
Address :	Anchorage 1^st Floor, P. J. Ramchandani Marg, Colaba Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	28.01.1953
Date of Appointment :	15.01.2003
Name :	Rulli Enzo
Designation :	Director
Address :	87/145, Wireless Road, Phatuwan – 10330, Bangkok, Thailand
Date of Birth/Age :	21.02.1959
Date of Appointment :	23.12.2003
Name :	Kenneth John Bullock
Designation :	Director
Address :	St, Margarets Petworth Road, Witley Surrey, GU 8 5 LZ, U. K.
Date of Birth/Age :	16.05.1955
Date of Appointment :	20.09.2004
Name :	Mr. Sivaraman A. Narayan
Designation :	Director
Address :	6 – B Hari Bhavan Peddar Road, Mumbai – 400026
Date of Birth/Age :	29.09.1950
Date of Appointment :	24.03.2005
Name :	Mr. Shriniwas Joshi
Designation :	Director
Address :	3 B – 301, Vaibhavgir, Siddhachal Phase – I, Pokhran Road No – 2, Thane West, Mumbai – 400601, Maharashtra, India
Date of Birth/Age :	01.11.1959
Date of Appointment :	22.08.2000
Name :	Mr. Shriniwas Joshi
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Bharat Petroleum Corporation Limited	97999995
Shell Overseas Investments B. V.	102000000
Bharat Petroleum Corporation Limited Jointly with Sengupta C K	1
Bharat Petroleum Corporation Limited Jointly with Radhakrishnan S	1
Bharat Petroleum Corporation Limited Jointly with Joshi S K	1
Bharat Petroleum Corporation Limited Jointly with bansal A K	1
Bharat Petroleum Corporation Limited Jointly with Mohan M J	1
Total	200000000

BUSINESS DETAILS

Line of Business :

Manufacturer of Liquid or gaseous fuels – Lubricants, Base Oil, Bitumen

Products :

Production Description	ITC Code No.
Lubricating Oil	2710
Bitumen and Asphalt, natural, Bituminous or Oil Shale and tar sands, Asphalities and Asphaltic Rocks	2714

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Lubricants	MT	55000	48222

GENERAL INFORMATION

No. of Employees :

500

Bankers :

· CITI Bank N.A.

· Ceylon Bank

· HDFC Bank Limited

· Deutsche Bank

· State bank of India (Industrial Finance Branch and Turbhe)

Facilities :

Secured loan	Rs In Millions
Foreign Currency Loans from banks	50.000
Cash Credit from banks (secured by Hypothecation of Stock, Book debts, outstanding monies receivable Claims and Bills)	50.000
Total	100.000

Banking Relations :	Satisfactory
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Associates/Subsidiaries :	· Shell international petroleum Company · The Shell Company of Australia limited · Shell Canada product Limited · Shell Eastern Petroleum pte. Limited, Singapore · Shell Eastern Trading Pte. Limited, Singapore · Shell Foundation · Shell China Limited · Shell Macron Gmbh · Shell UK Oil Products Limited · Shell Global Solution – Malaysia · Shell global Solution – UK · Shell Global Solution international B. V. · Shell Malaysia Trading Sdn Bhd · Shell Oman · Shell Pakistan Limited · Shell Markets Middle East Limited · Shell people Services · Shell information technology International Malaysia · Shell information technology International BV · Shell gas LPG India Private Limited · Saudi Arabian markets and Shell Lubricants Company Limited · Shell Aviation Limited · Shell international Trading and Shipping Company Limited · Shell Oil Products US · Shell International Limited · Shell Aseol AG · Showa Shell Sekiyu KK Japan · Shell Company of Thailand · Shell Trading ME Private Limited · Shell Marine products · Pennzoil Quaker state India Limited · Intenium Singapore Private Limited · Shell Hazira Gas Private Limited · Enterprises Oil Indonesia Limited · Shell European Export Centre S.A. · Shell Services international Private Limited · Shell car Care international · Shell Bitumen India Private Limited · Shell India Private limited · Shell India Marketing Private Limited · Shell HASCO · Phillippines Shell petroleum company · Shell company of Sudan · Shell Company of Srilanka Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
200,000,000	Equity Shares	Rs.10/- each	Rs.2000.000 millions
200,000,000	Equity Shares	Rs.2.50/- each	Rs.500.000 Millions
	Total		Rs.2500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200,000,000	Equity Shares	Rs.2.50/- each	Rs.500.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		500.000	500.000	500.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		244.100	157.595	113.025
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		744.100	657.595	613.025
LOAN FUNDS
1] Secured Loans		52.300	100.000	51.188
2] Unsecured Loans		584.100	422.173	500.036
TOTAL BORROWING		636.400	522.173	551.224
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1380.500	1179.768	1164.249
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		535.100	566.414	580.997
Capital work-in-progress		0.000	1.974	0.265
Assets Held For Disposal		0.000	0.747	0.000
INVESTMENT		0.000	0.010	0.010
DEFERREX TAX ASSETS		0.000	23.007	23.007
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	733.100	643.150	451.331
	Sundry Debtors	348.600	299.160	213.665
	Cash & Bank Balances	49.500	57.397	135.357
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	246.700	144.217	141.604
Total Current Assets		1377.900	1143.924	941.957
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	530.700	553.483	381.400
	Provisions	3.800	7.113	8.254
Total Current Liabilities		534.500	560.596	389.654
Net Current Assets		843.400	583.328	552.303
MISCELLANEOUS EXPENSES		2.000	4.288	7.667
TOTAL		1380.500	1179.768	1164.249

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		3949.900	2838.434	2345.439
Other Income		26.500	0.000	0.000
Stock Adjustments		72.900
Total Income		4049.300	2838.434	2345.439
Profit/(Loss) Before Tax		94.600	48.578	54.563
Provision for Taxation		8.000	4.008	4.401
Profit/(Loss) After Tax		86.600	44.570	50.162
Export Value		N.A.	21.012	31.551
Import Value		N.A.	1274.549	991.443
Expenditures :
	Raw Material Consumed	1858.500	0.000	0.000
	Purchases made for re-sale	491.700	0.000	0.000
	Consumption of stores and spares parts	10.000	0.000	0.000
	Increase/(Decrease) in Finished Goods	281.500	0.000	0.000
	Salaries, Wages, Bonus, etc.	229.200	0.000	0.000
	Managerial Remuneration	460.400	0.000	0.000
	Payment to Auditors	154.900	0.000	0.000
	Interest	199.900	0.000	0.000
	Insurance Expenses	36.600	0.000	0.000
	Power & Fuel	163.300	0.000	0.000
	Depreciation & Amortization	68.700	0.000	0.000
	Other Expenditure	0.000	2789.856	2290.876
Total Expenditure		3954.700	2789.856	2290.876

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	0.83	0.84	0.89
Long Term Debt-Equity Ratio	0.83	0.84	0.89
Current Ratio	2.27	2.13	2.29
TURNOVER RATIOS
Fixed Assets	4.34	3.63	3.06
Inventory	5.74	5.95	6.53
Debtors	12.19	12.69	12.77
Interest Cover Ratio	3.58	3.09	2.97
Operating Profit Margin (%)	5.06	4.06	4.83
Profit Before Interest and Tax Margin (%)	3.32	2.47	3.05
Cash Profit Margin (%)	3.93	3.13	3.64
Adjusted Net Profit Margin (%)	2.19	1.53	1.86
Return On Capital Employed (%)	10.27	6.89	7.43
Return On Net Worth (%)	12.36	7.85	8.52

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

· Leasehold Land

· Factory Building

· Other Building

· Plant and machinery

· Vehicles

· Equipments

· Furniture and Fixture

· Workshop Equipments

· Bulk Tankages

AS PER WEBSITE

Subject is a joint venture between Shell Overseas Investments BV (an affiliate of The Shell Group) and Bharat Petroleum Corporation Ltd. (BPCL). The respective shareholding is 51:49. subject entered the Indian lubricants market in 1994. The company's mandate is to incorporate the best national and multinational business practices and standards in pursuit of its objectives of marketing lubricants and ancillary business activities. In doing so, they follow the general business principles and core values of their majority shareholder - Shell. Bharat Shell will be, in the long term, a major player in the Indian downstream industry, consistent with the Government of India's policies.

· HSSE Commitment

· HSSE Policy

· Quality Policy

· Diversity And Inclusiveness

· Manufacturing facility

· Quality measures

BSL's focus is to market a range of Shell branded lubricants in India. Their products are now available at leading spare part shops, lubricant shops, authorised / independent workshops, and BPCL retail outlets. They also serve the most demanding requirements of industrial customers like Tata Steel, Telco, SKF, Steel authority Of India ltd., ONGC, Jindal Group, Modi Group, Coal India ltd., L and T, Tamil Nadu Petro, Ford India, Bajaj, Thermax and NOCIL to name a few. Their products are marketed nationally, as far as J&K or the Andaman and Nicobar Islands.

Shell Automotive Lubricants available in India are:

· Shell Helix range for passenger cars.

· Shell Rimula range for heavy vehicles.

· Shell Advance and Shell 2T for two and three wheeler engines.

· Specialty lubricants like Shell Spirax gear oils, Shell Automotive Greases, Shell Coolguard coolant, Brake Fluid, Pump Set Oil, Hydraulic Oils.

Leading global manufacturers of engines and industrial equipment recommend Shell lubricants, and also Indian OEM's like Hindustan Motors, Bajaj, TVS, Daimler Chrysler, Caterpillar, Eicher, Escorts, Swaraj Mazda, Greaves and Wartsila. Marketing alliances exist with segment leaders like Maruti, Mahindra and Mahindra, Skoda, Ford and Thermax.

Since 1997, Bharat Shell manufacturers its lubricants at its state-of-the-art lubricant oil blending plant at Taloja, near Mumbai (Bombay). This is a QS-9000 certified plant, a unique distinction that speaks of the highest quality standards in the industry.

Globally Shell has one of the largest Research and Development budgets in the world, exceeding Rs.35000.000 Millions Shell has made huge investments in dedicated research centers in the UK and the Netherlands. Through its intensive research, Shell has developed specialized refining processes to help remove harmful elements from the feed-stock as well as produce superior base oils. Hence Shell lubricants are universally acknowledged to provide better engine protection, lower pollution and enhanced engine protection.

Shell has achieved its worldwide prominence not only because of its technical expertise but also because of its commitment to human values, safety and environment protection. Shell also maintains the highest standards in quality and customer service. Their core values are honesty, integrity and respect for people. These values also shape their General Business Principles and Business Policies. Bharat Shell's objective is to build the same level of customer confidence that Shell enjoys in more than 145 countries around the world. It aims to live up to the positive international slogan "You can be sure of Shell".

· HSSE Commitment

In Bharat Shell Limited, they are all committed to:

· Pursue the goal of no harm to people

· Protect the environment

· Use material and energy efficiently to provide their product and services

· Develop energy resources, products and services consistent with these aims

· Share openly information on their HSSE performance

· Play a leading role in promoting best practice in their industry

· Manage HSSE matters as any other critical business activity

· Promote a culture in which all BSL employees share this commitment

· Create a secure business environment that minimises economic loss and business disruption, safeguarding Shell people, Shell's integrity and reputation

In this way they aim to have an HSSE performance that they can be proud of, to earn the confidence of customers, shareholders and society at large, to be a good neighbour and to contribute to sustainable development.

· HSSE Policy

To this end, Bharat Shell Limited :

· Has a systematic approach to HSSE management designed to ensure compliance with the law and to achieve continuous performance improvement.

· Pursues its activities so as to protect employees and others from associated health hazards.

· Promotes safety awareness, believes all injuries are preventable, and promotes individual accountability for accident prevention.

· Seeks progressive reduction of emissions and discharges which adversely affect the environment.

· Conducts thorough investigations into all HSSE incidents and near misses with significant actual or potential consequences and reports accordingly.

· Sets targets for improvement and measures, approises and reports performance.

· Requires contractors to manage HSSE in line with this policy.

· Requires joint ventures unders its operational control to apply this policy, and uses its influence to pormote it in its other ventures.

· Includes HSSE performance in the appraisal of all staff and rewards accordingly.

Quality Policy

To provide products and services to their customers which exceed their expectations on quality, performance and value for money and by so doing to meet the financial and other interests of their stakeholders.

They achieve this by:

· Committing to continuous improvement of their business practices

· Fostering operational excellence

· Inculcating Health, Safety and Environment best practice among employees, vendors and contractors

· Diversity And Inclusiveness

What is Diversity and Inclusiveness?

At Bharat Shell, diversity means all the ways in which they differ. It includes visible differences such as age, gender, ethnicity and physical appearance; as well as underlying differences such as religion, nationality, education, thinking styles. It means respecting, valuing and harnessing the richness of ideas, backgrounds and perspectives, i.e. a new source of creativity.

Inclusiveness means a workplace in which diversity is valued; in which everyone has the opportunity to develop skills and talents consistent with their values and business objectives. The aim to create an organisation, in which individuals are involved, supported, respected and connected.

"What shapes the future is not what they have in common but the interplay of their differences."

Why Diversity and Inclusiveness is important to Bharat Shell?

The leading global companies of the 21st century will be those that create the constant stream of innovative goods and services, winning customers and earning loyalty through exceptional performance. Successful implementation of Diversity and Inclusiveness helps us through increased productivity, stronger customer and market focus, attraction and retention of top talent besides an energetic and dynamic environment that is made of diverse yet inclusive individuals.

How do they manage Diversity and Inclusiveness?

Managing Diversity and Inclusiveness in their businesses is a complex, on-going change process, designed to increase organisational capability by:

· Addressing factors of differences which have an impact on workplace performance

· Fully utilising the potential contributions of all employees

· Eliminating / reducing barriers that stand in the way of inclusion and full participation

· Unleashing the creativity that comes through drawing from different ideas and backgrounds.

· Building relationships and demonstrating respect and fairness in their interactions with employees

· and external stakeholders-customers, suppliers, partners, community.

Manufacturing facility

To manufacture world class lubricants in India, Bharat Shell commissioned its state of art blending plant at Taloja, dist. Raigad, in January 1997. The plant capacity is 55000 metric tonnes per annum, and it is constructed to Shell's global standards of Safety, Quality and Environment.

Environment protection measures

Some of the measures taken are

· Epoxy flooring in production area,

· Tank farm land is covered with HDPE sheet

· Oil interceptor at water discharge line

· Proper waste collection and disposal

Further, every operation in the plant has been evaluated for Health and Safety risks, and measures instituted to eliminate these risks.

Quality measures

· Base oils and additives, the two basic raw materials used in manufacturing Lubricants, are procured either from Shell Refineries or global sources approved by Shell Research Centre. This gives us total control over raw material quality from source to finished product.

· Products are formulated and tested as per Shell's unique Lubricants Quality System. This ensures that Products meet the same quality and performance standards across the world.

· Bharat Shell has its own pigged pipelines and storage tanks at Jawaharlal Nehru Port (JNPT) for unloading ships. This ensures zero residual cross-contamination.

· Base oils are transferred to the plant in the company's own dedicated tank lorry, to avoid contamination and malpractice en route.

· All discharge lines of storage tanks and tankers have coded coupling facility to prevent errors.

· Production processes are fully automated, which ensures accurate measurement and dosing of ingredients.

· Blending tanks and finished product tanks are designed to ensure zero residual contents, which eliminates contamination of the next batch of product.

· A series of fine filters ensures delivery of clean oil.

· The Quality Control laboratory is equipped with highly precise and automatic instruments. Each raw material and finished product is tested stringently and approved on a Zero-defect basis.

· High speed and correct quantity filling machines are used to fill the finished product. Oil is filled in wide range of packs, which covers bottles, pails, barrels and bulk tank lorries.

· The plant is facilitated with Flexible Manifold Connections, the only system in a lubricant oil blending plant in India. This provides the flexibility to fill any product at any machine from any storage tank, and a completely leakage free operation unlike conventional hose pipe connections.

· To avoid inter-product contamination, filling lines are provided with pigs to remove traces of product in pipelines.

· The first-in-first-out inventory movement of packs is ensured through a computerised system.

· With the help of modern technology, high accuracy measurement systems and statistical controls, the plant has successfully delivered Consistent Quality Product. It has also been accredited with the QS 9000 certificate, one of the most challenging quality standards in the world.

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.39.27
UK Pound	1	Rs.76.88
Euro	1	Rs.58.40

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		63

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