MIRA INFORM REPORT

Report Date :

30.07.2008

IDENTIFICATION DETAILS

Name :	KSB PUMPS LIMITED
Registered Office :	126, Maker Chambers – III, Nariman Point, Mumbai – 400 021, Maharashtra.
Country :	India.
Financials (as on) :	31.12.2007
Date of Incorporation :	11.04.1960
Com. Reg. No.:	011635
CIN No.: [Company Identification No.]	L29120MH1960PLC011635
TAN No.: [Tax Deduction & Collection Account No.]	MUMK11971B
PAN No.: [Permanent Account No.]	AAACK5918J
Legal Form :	A public limited liability company. The company’s shares are listed on the stock exchange.
Line of Business :	Producers of pumps, valves and related systems

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 11885885
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Trade relations are fair. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business planner in a medium to long term.

INFORMATION DECLINED BY

Name :	Mr. A.C. Verghese
Designation :	Import Department
Date :	17.07.2008

LOCATIONS

Registered Office :	126, Maker Chambers III, Nariman Point, Mumbai – 400 021, Maharashtra, India.
Tel. No.:	91-022-66588787
Fax No.:	91-022-66588788
E-Mail :	mamehta@ksb.co.in
Website :	www.ksbindia.co.in
Zonal Office :
North :	Noida
Offices :	Bareilly, Chandigarh, Jaipur, Lucknow
East :	Kolkata
Offices :	Bhubaneshwar, Jamshedpur, Raipur
West :	Mumbai
Offices :	Ahmedabad, Aurangabad, Baroda, Indore, Nagpur, Pune
South :	Chennai
Offices :	Bangalore, Hubli and Secunderabad
Factories :	At Pimpri, Pune – 411 018
	At Chinchwad, Pune – 411 019
	At Vambori – 413 704, Dist.: Ahmedabad
	At NSN Palayam, Coimbatore – 641 031
	At Sinnar, Dist: Nashik – 422 103

DIRECTORS

Name :	Mr. A. V. Setalvad
Designation :	Chairman
Name :	Mr. A. R. Broacha
Designation :	Director
Name :	Mr. D. N. Damania
Designation :	Director
Name :	Mr. N. N. Kampani
Designation :	Director
Name :	Mr. A. Lee
Designation :	Director
Name :	Mr. G. Swarup
Designation :	Director
Name :	Mr. M. Swarup
Designation :	Director
Name :	Mr. W. Schmitt
Designation :	Director
Name :	Mr. W. Spiegel
Designation :	Managing Director

KEY EXECUTIVES

Name :	Mr. M A Mehta
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2008

Category of Shareholder	Total No. of Shares	Percentage of Holding
Shareholding of Promoter and Promoter Group
Indian:
Individuals / Hindu	142329	0.82
Bodies Corporate	4374000	25.13
Foreign:
Bodies Corporate	7055424	40.54
Public Shareholding
Institutions:
Mutual Funds/ UTI	2579649	14.82
Financial Institutions/ Banks	294053	1.69
Foreign Institutional Investors	30424	0.17
Foreign Financial Institution	500	0.00
Non – Institutions:
Bodies Corporate	812936	4.67
Individuals
i) Individuals shareholders holding nominal share capital up to Rs.0.100 million	1928046	11.08
ii) Individuals shareholders holding nominal share capital in excess of Rs.0.100 million	98909	0.57
Any other (specify)
i) Clearing Members	7225	0.04
ii) Non Resident Indian Repatriable	31041	0.18
iii) Non Resident Indian Non - Repatriable	33486	0.19
iv) Directors and their relatives	15900	0.09
TOTAL	17403922	100

BUSINESS DETAILS

Line of Business :	Producers of pumps, valves and related systems
Products :	Pumps and valves, services and systems

PRODUCTION STATUS (As on 31.12.2007)

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Power Driven Pumps	NA	105500 Nos.	94519 Nos.
Industrial Valves	NA	170000 Nos.	156509 Nos.
Carbon Steel, Alloy Steel and Alloy Iron Castings	7000 Tonnes	6800 Tonnes	419734 Kgs.
Non Ferrous Castings	200 Tonnes	200 Tonnes	--

GENERAL INFORMATION

No. of Employees :

600

Bankers :

· Central Bank of India

· Deutsche Bank AG

· Standard Chartered Bank

Facilities :

	As on 31.12.2007 [Rs. in Millions]
SECURED LOANS :
Working capital facility from Bank secured by hypothecation of stocks (including loose tools, stores and spares), book debts and pledge of fixed deposits of Rs.45.394 millions, previous year-Rs. Nil	242.150
UNSECURED LOANS
a) Loans and advances from other than Banks (in respect of assets taken on finance lease on or after 1^st April, 2001) (repayable within one year Rs.2.202 millions; previous year Rs.3.650 millions)	5.921
b) Long term loans and advances from other than Banks – Sales tax deferral	3.052

Banking Relations :	Satisfactory
Auditors :
Name :	A.F. Ferguson and Company Chartered Accountants
Collaborators :	KSB Aktiengesellschaft Germany
Controlling Company :	· KSB AG · Canadian Kay Pump Limited
Associates :	MIL Controls Limited
Subsidiaries :	Pofran Sales and Agency Limited
Group Companies :	KSB S.A. KSB Inc., USA KSB Pumps (S.A.) (Pty.) Limited., South Africa KSB Ajax Pumps Private Limited KSB Chile S.A. KSB Singapore (Asia Pacific) Private Limited KSB Limited, Hongkong KSB Pumps Company Limited, Thailand P.T. KSB, Indonesia KSB Taiwan Company Limited KSB Limited, Tokyo KSB Korea KSB Mexico KSB Valves (Shanghai) Company Limited KSB Brazil KSB Nederland DP Industries B.V., Nederland KSB Pumps Arabia Limited KSB Limited, U.K. KSB Italia S.p.A. Italy KSB Pompa Turkey KSB Shanghai Pump Company Limited, China Mercantile-KSB Oy AB, Finland Delian KSB Amri Valves Company Limited, China Bombas ITUR S.A., Spain KSB TESMA S.A., Griechenland KSB Tech. Private Limited, India GIW Industries Inc., USA KSB Middle East FZE, Dubai KSB Pumpy + Armatury spol. sr. o. Czech KSB Finanz SA KSB AG Canadian Kay Pump Limited Klein Pumpen GmbH Pofran Sales and Agency Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- Each	Rs.200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17403922	Equity Shares	Rs.10/- Each	Rs.174.039 millions

Notes:

1) Of the above shares, 16544488 (previous year – 16544488) shares are allotted as fully paid-up bonus shares by way of capitalization of share premium and general reserve.

2) Out of the above shares, 890 (previous year – 890) shares have been issued pursuant to the Scheme of Amalgamation with erstwhile Grade-O-Casting Limited without payment being received in cash.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2007	31.12.2006	31.12.2005
SHAREHOLDERS FUNDS
1] Share Capital		174.039	174.039	174.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2203.138	1844.290	1449.800
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2377.177	2018.329	1623.800
LOAN FUNDS
1] Secured Loans		242.150	100.336	98.500
2] Unsecured Loans		8.973	9.172	14.500
TOTAL BORROWING		251.123	109.508	113.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2628.300	2127.837	1736.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		752.579	530.010	467.200
Capital work-in-progress		145.624	155.914	15.300
INVESTMENT		70.505	78.188	78.200
DEFERREX TAX ASSETS		10.473	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1225.910	961.722	871.700
	Sundry Debtors	1054.305	825.897	686.200
	Cash & Bank Balances	535.922	628.796	437.100
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	420.260	249.922	239.300
	Income accrued on investments	0.011	0.033	0.000
Total Current Assets		3236.408	2666.370	2234.300
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1364.928	1074.618	879.800
	Provisions	222.361	228.027	178.400
Total Current Liabilities		1587.289	1302.645	1058.200
Net Current Assets		1649.119	1363.725	1176.100
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2628.300	2127.837	1736.800

PROFIT & LOSS ACCOUNT

PARTICULARS		31.12.2007	31.12.2006	31.12.2005
Sales Turnover		4654.451	4063.764	3963.400
Other Income		107.253	56.939	62.800
Total Income		4761.704	4120.703	4026.200
Profit/(Loss) Before Tax		678.582	786.974	595.200
Provision for Taxation		218.527	270.450	215.200
Profit/(Loss) After Tax		460.055	516.524	380.000
Earnings in Foreign Currency :
	Export Earnings	332.716	365.283	NA
Total Earnings		332.716	365.283	NA
Imports :
	Raw Materials	142.744	90.487	NA
	Stores & Spares	2.810	2.367	NA
	Capital Goods	177.980	105.123	NA
	Items imported for resale	25.098	11.460	NA
Total Imports		348.632	209.437	NA
Expenditures :
	Raw Material Consumed	2228.118	1745.905	1654.400
	Payment to and provisions for employees	625.570	536.881	NA
	Increase/(Decrease) in Finished Goods	(13.273)	(12.109)	(61.800)
	Other Manufacturing Expenses	NA	NA	269.900
	Selling & Administrative Expenses	NA	NA	329.500
	Employees Cost	NA	NA	482.100
	Excise Duty	NA	NA	385.100
	Power & Fuel	NA	NA	85.100
	Miscellaneous Expenses	NA	NA	181.700
	Interest & Financial Charges	6.501	9.645	5.400
	Depreciation & Amortization	109.879	88.257	99.600
	Other Expenditure	1126.327	965.150	0.000
Total Expenditure		4083.122	3333.729	3431.000

QUARTERLY RESULTS

PARTICULARS	31.03.2008 1st Quarter
Sales Turnover	1320.900
Other Income	18.500
Total Income	1339.400
Total Expenditure	1108.200
Operating Profit	231.200
Interest	3.400
Gross Profit	227.800
Depreciation	29.000
Tax	70.000
Reported PAT	128.800

KEY RATIOS

Particulars	31.12.2007	31.12.2006	31.12.2005
Debt-Equity Ratio	0.08	0.06	0.06
Long Term Debt-Equity Ratio	0.00	0.01	0.02
Current Ratio	1.80	1.90	1.83
Fixed Assets	2.82	2.83	2.67
Inventory	4.66	4.92	4.78
Debtors	5.43	5.97	6.04
Interest Cover Ratio	105.38	82.98	111.22
Operating Profit Margin(%)	15.58	19.60	17.67
Profit Before Interest And Tax Margin(%)	13.43	17.65	15.15
Cash Profit Margin(%)	11.38	13.15	12.10
Adjusted Net Profit Margin(%)	9.23	11.20	9.59
Return On Capital Employed(%)	28.81	41.23	38.14
Return On Net Worth(%)	21.42	27.76	25.68

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

1871
The "Frankenthaler Maschinen- and Armatur-Fabrik Klein, Schanzlin and Becker" (Machine and Valve Factory) is established.

1896
KSB sets up a British subsidiary, its first venture outside Germany.

1941
Argentina becomes home to the first of ten current KSB companies in the Americas.

1953
The foundation of a Pakistani subsidiary marks a move into the Asian-Pacific market, where KSB today has 15 Group companies.

1960
Subject, India is established.

1984
KSB sets up a company in Australia.

1986
The leading French pump manufacturer, Paris-based Pompes Guinard S.A., joins the KSB Group.

1987
Subject., India commences production of ANSI valves at a new plant in Coimbatore, Tamil Nadu

1988
KSB acquires a majority interest in U.S. slurry pump manufacturer GIW Industries.

1989
Acquisition of Amri S.A., Paris, the world's second-largest manufacturer of butterfly valves.

1991
KSB takes over Pumpenwerk Halle and converts it into an environmental engineering centre.

1994
The company acquires a majority stake in KSB Shanghai Pumps Company

1996
KSB becomes 100% shareholder in GIW (Georgia Ironworks).

1997
Acquisition of MIL Controls Limited, India - producer of ANSI and control valves.

SERVICES:

For any process cycle to satisfy all applicable criteria at once, all of its components must work together smoothly.

Knowing this, KSB has always gone beyond the engineering of state-of-the-art pump and valve technology, striving to provide an airtight array of service around pumps and valves.

That means KSB stands by its customers all along, through the entire implementation phase of a project and also provides continuous after-sales service. It also means that KSB service specialists are available anywhere, anytime, all around the globe.

Their service capabilities are so recognised that they even spared their trained service personnel to be employed internationally in Taiwan, Abudhabi etc.

They are geared up for the prompt supply of spares for their range of manufacture and also extend all help to their customers to import spares, if required.

They undertake a variety of service contracts and energy audits to provide optimum and cost effective solutions. All this is in line with their long-term objective of increasing their service presence worldwide.

Last but not the least, they help their esteemed customers having problems with pumps and valves of other makes, both imported and indigenous, and offer all possible assistance.

Fixed Assets

Tangible Assets:

Freehold Land

Leasehold Land

Buildings

Plant and Machinery

Furniture and fixtures

Development of property

Vehicles

Lease Assets – Vehicles

Intangible Assets:

(Other than internally generated)

Software

Rights, techniques, process and technical know-how

Subsidiary and Associate:

Annual Accounts for the year ended 31st December, 2007 of Pofran Sales and Agency Limited (the Company's wholly owned subsidiary) which show a profit before tax of Rs. 9.6 millions. (previous year Rs. 11 millions.) for business upto the date, are attached. A dividend of Rs. 5 millions has been received during the year from the subsidiary company. 

The Associate Company, MIL Controls Limited (MIL) has made a profit before tax of Rs. 201.1 millions for the year ended 31st December, 2007 (previous year - Rs. 112.5 millions). A dividend of Rs 27.5 millions has been received during the year from the Associate Company.

INDUSTRY STRUCTURE AND DEVELOPMENT 

General 

Indian economy moved decisively to a higher growth phase. The economic growth was over 8% for the year. Macro economic fundamentals continued to inspire confidence. The investment climate remained full of optimism. 

There has been deceleration of growth in the agricultural sector. The secular decline in the share of agriculture sector in GDP continued with a decline from 24% in 2001- 2002 to 17.55% in the current fiscal year. There has been a loss of dynamism in the agriculture and allied sectors in recent years. Public investment in this sector has declined and it does not attract private investment in view of low returns.

 The industrial sector witnessed a slow down in the current year. When viewed against the back drop of the robust growth witnessed in the preceding four years, present trend suggests that there has been a certain degree of moderation in the momentum of industrial sector. At the product group level, the moderation in growth had been selective. Basic metals, machining equipments and petroleum products recorded lower growth. Some segments of the infrastructure sector have shown a subdued performance.

 Inflation continued to play a role of villain in the economic growth. The increase in prices of oil, steel and basic metals has been the major cause.

Inflation in India is a structural as well as monetary phenomenon. Large inflow of capital coupled with mismatch of demand and supply exerted pressure on prices. In spite of governmental anti-inflationary measures such as strict fiscal and monetary discipline, rationalization of excise and custom duties, liberal tariff and trade policies have failed to contain inflation. 

Overall inflation is likely to remain. Global prices are having more pronounced impact on domestic prices. 

With increased capital inflows and appreciating rupee, concerns about possible overvaluation of the currency and consequential loss of long-term competitiveness of exports in traditional and goods sectors - popularly known as the "Dutch disease", have arisen. The appreciation of rupee vis-a-vis the dollar, the main invoicing currency of exports compared to slow growth of imports by trading partners affected exports of some sectors with low import intensity. 

The real challenge lies in strengthening the foundations for sustained industrial growth. Removing the infrastructural impediments in road, transport and power, containing inflation on account of international rise in oil prices and basic metals, improving growth in agriculture, managing continued increase in capital inflows and consequential changes in the appreciation of rupee remain major challenges for the Indian Economy especially in a period of moderation of industrial growth and deceleration of global demand for Indian exports. 

PUMPS AND VALVES INDUSTRIES

The growth witnessed by the Pumps and Valves industries was in line with the performance in the Indian economy. The growth in these sectors mainly came from energy sector. Boiler and Turbine manufacturers continued to invest heavily in this sector. International competition especially from Chinese contractors in industrial power plant sector continues to exert pressure. Demand in the oil industry sector is growing. Demand for the submersible pumps is dependent on weather cycle. In view of extremely unusual disturbances the growth has been fluctuating. Trend in waste water, sewage management market in India is encouraging. 

OPPORTUNITIES AND THREATS

11th Five year Plan has started. With the target capacity of additions in the 11th Plan there is likely to be continued upward shift in the growth in energy sector. Activities in the industrial sector will be encouraging. In the oil sector major quality upgradation projects are expected to continue. Further increased activities of Chinese contractors, lowering of duties and ever increasing international competition under globalisation are expected to be more severe in the years to come. The market dynamics in the domestic sector remains unchanged with close competition from domestic as well as international players. 

OUTLOOK

Improved investment in the industrial sector and continuous impetus being given by the Government to infrastructure are likely to contribute to the overall growth in the economy. It is expected, barring unforeseen circumstances they are likely to have favourable effect on the Company's business. Programme of production harmonization at the various manufacturing locations to cater to the increased demand from the market and to bring down delivery times to market expectations, is progressing satisfactorily. The Company continues its efforts of innovation to meet ever-changing requirements of the market. 

RISKS AND CONCERNS THE MANAGEMENT PERCEIVE

Cost push inflation, mainly on account of rising prices of steel and oil in international market is likely to have impact on the Company's input cost.

The industrial sector may not grow as expected unless infrastructure bottlenecks and shortages, labour market rigidities, enter and exit barriers and multiple stages and level of approvals/clearances are removed. 

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

Internal Control Systems are implemented 

 - To safeguard the Company's assets from loss or damage 

- To keep constant check on cost structure

- To provide adequate financial and accounting controls and implement accounting standards.

The system is improved and modified continuously to meet with changes in business condition, statutory and accounting requirements. 

Internal controls are adequately supported by Internal Audit Department and periodic review by the management. 

The Audit Committee meets periodically to review – 

- With the management, and statutory auditors, financial statements 

- With the internal auditors, adequacy / scope of internal audit function, significant findings and follow up thereon and findings of any abnormal nature. 

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL EFFICIENCY 

There is a consistent and continuing effort to improve through technology and quality management. A substantial investment has been made in a SAP system to achieve greater production efficiency and increase profitability. 

 The following statements cover financial Performance Review, which are attached to this report.

a) Distribution of Income 

b) Financial Position at a glance 

c) Financial Summary 

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES, INDUSTRIAL RELATIONS

The Company believes that the success of any organisation depends mainly on effectiveness of people. The challenge today is to attract and retain human resources, develop them continuously and motivate them to give their best to the organisation. Therefore the Company has launched various HR initiatives to attract and retain the competent employees. 

Learning and development programmes are organised on a continuous basis at all locations to develop the competence of employees at all levels for meeting present and future challenges of the organisation. 

Industrial relations at all the plants were cordial. Company signed two productivity linked wage agreements at its Sinnar and Coimbatore plants. 

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.42.54
UK Pound	1	Rs.84.86
Euro	1	Rs.66.95

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		64

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