MIRA INFORM REPORT

Report Date :

24.06.2008

IDENTIFICATION DETAILS

Name :	VALECHA ENGINEERING LIMITED
Registered Office :	Valecha Chambers Plot No B-6, 7^th Floor, Andheri New Link Road, Mumbai - 400053, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	05.03.1977
Com. Reg. No.:	019535
CIN No.: [Company Identification No.]	L74210MH1977PLC019535
TAN No.: [Tax Deduction & Collection Account No.]	MUMV09361C
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed of the Stock Exchange.
Line of Business :	Civil Contractors

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 760000
Status :	Very Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established company having fine track. Directors are reported as experienced, respectable and resourceful businessmen. The company is doing very well. Payments are correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Valecha Chambers Plot No B-6, 7^th Floor, Andheri New Link Road, Mumbai - 400053, Maharashtra, India
Tel. No.:	91-22-26733625-29/ 26733238/ 3587/ 26733627-28/ 26393335
Fax No.:	91-22-26733945/ 26338001
E-Mail :	valeng@bom3.vsnl.net.in
Website :	http://www.valechaeng.com
Location:	Owned

DIRECTORS

Name :	Mr. J K Valecha
Designation :	Managing Director
Date of Birth/Age :	47 years
Qualification :	B.Com
Experience :	24 years
Other Company :	· Valecha Infrastructure Limited, · F 2, Fun And Fitness (India) Private Limited First Fitness (India) Private Limited
Name :	Mr. R H Valecha
Designation :	Whole – Time Director
Date of Birth/Age :	68 years
Qualification :	BA
Experience :	49 years
Other Company :	Juhu Beach Real Estate Private Limited
Name :	Mr. Umesh H Valecha
Designation :	Director
Date of Birth/Age :	30 years
Qualification :	B E (Civil)
Experience :	14 years30
Other Company :	· Valecha Investment Private Limited , · Juhu Beach Real Estates Private Limited · F2 Fun N Fitness (India) Private Limited · First Fitness (India) Private Limited
Name :	Mr. A B Gogate
Designation :	Director
Date of Birth/Age :	54 years
Qualification :	B. Tech (Civil) from IIT, Mumbai
Experience :	29 years
Other Company :	Valecha Engineering Limited
Name :	Mr. Dinesh H Valecha
Designation :	Director
Date of Birth/Age :	37 years
Qualification :	BE
Experience :	14 years
Date of Appointment :	· Valecha Infrastructure Limited, · Valecha Investment Private Limited and · Gopaldas Vasudev Construction Private Limited
Name :	Mr. V P Valecha
Designation :	Chairman
Name :	Mr. G Ramachandran
Designation :	Director
Name :	Mr. Anil Harish
Designation :	Director
Name :	Mr. I Syam Prasad Reedy
Designation :	Director
Name :	Mr. Arvind Thakkar
Designation :	Director
Name :	Mr. Shailesh Harbhakti
Designation :	Alternate Director

KEY EXECUTIVES

Name :	Ms. Kavita Valecha Sharma
Designation :	Company Secretary
Name :	Mr. S B Wave
Designation :	Senior Vice President (Projects)
Name :	Mr. P H Valecha
Designation :	Senior Executive
Name :	Mr. K S Shetty
Designation :	Vice President (Accounts And Finance)
Name :	Mr. C K Chhatre
Designation :	General Manager (Tendering , Business Development And Contracts)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 31.03.2007)

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters (including persons acting in concert)	3126885	42.85%
NRI’s	145194	1.99%
Bodies corporate	1393214	19.09%
Financial Institutions / Mutual Funds / FII)	390295	5.35%
Others:
Share held by custodians issued against GDR	324000	4.44%
Indian public	1918312	26.28%
Total	7297900	100.00

BUSINESS DETAILS

Line of Business :	Civil Contractors
Products :	· Infrastructure Development · Real Estate Development · Wind Power Generation

GENERAL INFORMATION

Customers :

· Maharashtra State Road Development Corporation Limited, Mumbai                      

· Western Railway, Mumbai

· National Building Construction Corporation Limited, New Delhi

· Ashoka Buildcon Limited, Pune

· NTPC Limited, Rihand, Uttar Pradesh

· Adani Port, Gujarat

· Toyo Engineering Limited, Dahej, Gujarat

· Oberoi Construction Private Limited, Andheri

· Conwood Construction Private Limited, Juhu, Vile parle

· Vinita Estate Private Limited, Borivali

· K.Raheja Developers, Prabhadevi

· Wadhva Builders, Bandra

· Swastik Builders, JVPD, Vile Parle

· J.K.Shah, JVPD, Vile Parle

· Empire Audio Private Limited, Andheri

· Richa Relators, JVPD, Vile Parle

· Bhojvani Developers, Pali Hill, Bandra

· Warehousing Corporation Limited, Pune

No. of Employees :

45

Bankers :

· State Bank of India

· Canara Bank

· Axis Bank Limited

Facilities :

SECURED LOANS	31.03.2007 (Rs. in millions)
Banks
Cash Credit against Book debts	149.443
Contractees Secured by guarantee from banks	346.659
Financial Institutions / Banks
Against Plant and machineries , Vehicles and other current assets	571.079
Total	1067.181

UNSECURED LOANS	31.03.2007 (Rs. in millions)
Fixed Deposits	24.019
Advance – Preferential Warrants / Share application Money	42.766
Total	66.785

Banking Relations :	Good
Auditors :
Name :	Mr. D. M. Jain and Company Chartered Accountant
Associates/Subsidiaries :	· Valecha Infrastructure Limited  · Gopaldas Vasudev Construction Private Limited. · Valecha Investment Private Limited. · Construction Machinery Corporation · First Fitness (India) Private Limited. · F2 Fun-N-Fitness Private 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
7297900	Equity shares	Rs.10/- each	Rs.72.979 millions

NOTES:

(Of the above Shares 1000000 Shares (F.Y. 1993-1994) and 1500000 Shares (Financial years 2002-2003) are allotted as fully paid-up by way of Bonus Shares by capitalisation of General Reserve).

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		72.979	69.239	45.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1448.183	1110.244	285.600
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1521.162	1179.483	330.600
LOAN FUNDS
1] Secured Loans		1067.182	407.856	276.000
2] Unsecured Loans		66.785	52.882	33.000
TOTAL BORROWING		1133.967	460.738	309.000
DEFERRED TAX LIABILITIES		101.488	78.199	0.000
TOTAL		2756.617	1718.420	639.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1164.883	513.028	407.800
Capital work-in-progress		182.668	0.000	0.000
INVESTMENT		70.238	81.522	96.800
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	206.678	41.507	79.800
	Sundry Debtors	103.901	1.781	175.800
	Cash & Bank Balances	668.377	463.056	65.400
	Other Current Assets	255.347	499.917	0.000
	Loans & Advances	1074.543	557.889	224.200
Total Current Assets		2308.846	1564.150	545.200
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	961.480	416.596	354.400
	Provisions	8.538	23.684	55.800
Total Current Liabilities		970.018	440.28	410.200
Net Current Assets		1338.828	1123.870	135.000
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2756.617	1718.420	639.600

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		2478.095	1513.757	1505.600
Other Income		36.549	34.573	0.000
Total Income		2514.644	1548.330	1505.600
Profit/(Loss) Before Tax		330.056	295.415	91.800
Provision for Taxation		52.552	27.341	29.400
Profit/(Loss) After Tax		277.504	268.074	62.400
Expenditures :
	Manufacturing Expenses	0.000	0.000	1020.300
	Administrative Expenses	46.579	31.262	0.000
	Raw Material Consumed	0.000	0.000	185.400
	Salaries, Wages, Bonus, etc.	66.261	29.104	23.400
	Construction Expenses	2006.731	1143.669	0.000
	Wind Farm Expenses	0.270	0.348	0.000
	Financial Cost	14.926	19.762	0.000
	Interest	0.000	0.000	29.500
	Power & Fuel	0.000	0.000	69.200
	Depreciation & Amortization	49.821	28.770	24.000
	Other Expenditure	0.000	0.000	62.000
Total Expenditure		2184.588	1252.915	1413.800

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2007	30.09.2007	31.12.2007
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	933.900	928.100	1162.000
Other Income	7.100	50.600	9.700
Total Income	941.000	978.700	1171.700
Total Expenditure	859.900	850.700	1077.200
Operating Profit	81.100	128.000	94.500
Interest	10.400	12.500	20.600
Gross Profit	70.700	115.500	73.900
Depreciation	18.100	20.200	24.100
Tax	10.700	9.000	3.400
Reported PAT	35.700	79.000	34.600

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	0.59	0.51	1.03
Long Term Debt-Equity Ratio	0.51	0.41	0.78
Current Ratio	2.07	1.94	1.14
TURNOVER RATIOS
Fixed Assets	2.50	2.58	2.90
Inventory	14.00	24.59	17.22
Debtors	4.38	4.74	9.71
Interest Cover Ratio	4.92	4.26	3.59
Operating Profit Margin(%)	10.24	10.24	8.93
Profit Before Interest And Tax Margin(%)	8.23	8.34	7.28
Cash Profit Margin(%)	7.51	7.68	5.22
Adjusted Net Profit Margin(%)	5.50	5.77	3.57
Return On Capital Employed(%)	9.50	11.07	16.91
Return On Net Worth(%)	10.10	11.58	16.79

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject is promoted by Valecha Brothers under a partnership firm, was incorporated in 1977, as a private limited company in the name of Valecha Bros. (E.C.) Private Limited. The company changed its status from private to public limited under the name of Valecha Bros. (E.C) and further on 23^rd December 1993 changed its name to Valecha Engineering Limited. Within a short span of 20-25 years recognition came in the form of qualification of Highest Class of Contractors. The company provides engineering services to its customers. It is also engaged in power generation and real estate business.  

The company has commissioned two wind turbines of 220 MW for Bharat Heavy Electric (BHEL). It has also obtained the letter of intent for construction of a second bridge over the Narmada river. Subject has entered into a joint venture with Costain, UK, for the above project.  

The company has been a consistent performer over the years and made a good beginning in 1998-99 by bagging the projects like the construction of flyover at National Park Junction on Western Expressway in Bombay (Project Cost Rs.172.000 Millions) and Four lanning and strengthening of NH1 from Km. 74/200 to 92/200 from Smallkha to Panipat Contract II (Project Cost Rs.168.800 Millions). 

The company came out with an offer for sale on 9^th March 1994, of 787500 equity shares of Rs.10/- each at an offer price of Rs.38/- per share aggregating to Rs.29.925 Millions. The main object of this issue was to part finance the execution of existing contracts and an expansion in its operations. 

The company has been pre-qualified in Joint Venture with MTD Malaysia for Port Connectivity Road Projects totaling to Rs.4500 Millions. In 2001-02 the company bagged a prestigious Satara- Kolhapur Road project amounting to Rs.855.000 Millions under MSRDC in JV with M Venkata Rao. The project is expected to be completed as per schedule. The total order position of the company as on March, 2003 is Rs.2000.000 Millions.

Operations:

The turnover has increased to Rs.1513.757 millions from Rs.1454.880 millions in 2004-2005 representing an increase of 4.05%. The Profit before Tax (PBT) has increased by 221.95% from Rs.91.757 millions in the previous year to Rs.295.416 millions for the year 2005-2006 which includes a sizeable component of other income. The Profit after Tax (PAT) is Rs.268.075 millions for the year 2005-2006 as compared to PAT of Rs.62.391 millions for the previous year representing an increase of 329.67%. 

The turnover has increased to Rs.2478.096 millions from Rs.1513.757 millions in 2005-2006 representing an increase of 63.70%. The Profit before Tax (PBT) with exceptional income has increased by 11.73% from Rs. 295.416 millions in the previous year to Rs.330.057 millions for the year 2006-2007. The PBT without exceptional income has increased by 55.89% from Rs.95.564 millions in the previous year to Rs.148.976 millions for the year 2006-2007. The Profit after Tax (PAT) with exceptional income is Rs.277.505 millions for the year 2006-2007 as compared to PAT of Rs.268.075 millions for the previous year representing an increase of 3.52%. The PAT without exceptional income was is Rs.96.424 millions for the year 2006-2007 as compared to PAT of Rs.68.223 millions for the previous year representing an increase by 41.34%.

Outlook and Review: 

With the present boom in the infrastructure industry, immense opportunities have emerged in the road and highway construction sector. In order to tap the potential of this sector huge investments are needed. The spectrum of activities in the sector is so large that there is room for many players.

This is attracting a large number of national and international companies to focus on this sector. Hence, the government is laying thrust on public-private partnership.

The Company has a good order book position of above Rs.8000.000 Millions which includes Jammu and Kashmir Road Project, MPRDC Road Project, Jaipur Air-Port Project and Piling Projects bagged during the year. 

Water management and water projects hold the key to future of many urban development projects. The Company's availability in doing Tunnels or Water management projects will see work flowing in the coming months ahead where margin are relatively better. 

The Company's competence in ground engineering has made it qualify in Joint Venture for Bangalore Metro Rail projects. They would be building Metros in both Budgeted and BOT basis in the coming years. 

The Company from being pan India presence in major infrastructure projects has embarked in the Middle East in the name of 'Valecha-Gulf '. The Company has just started its operation of ground engineering for building structures and Villa Projects. 

The Company is also focusing on Real Estates by acquiring 22 acres of land Bank in Pune. The Development of which is envisaged in 2008-2009. They are also looking at Joint Venture route to do Real Estates Development. The Company is proposing to invest around 1000.000 millions in Real Estates area building IT Park/Township. 

Subsidiary:

Valecha Infrastructure Limited: 

The Central Government in exercise of the power conferred by Section 212 (8) of the Companies Act, 1956 has accorded its approval for exemption from attaching the accounts of subsidiaries to the Balance sheet of the company. 

The Company shall provide copies of the Annual report and other documents of its subsidiary companies as required under Section 212 of the Act to the members on their request, free of cost. 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT 

(a) Industry Structure and Developments : 

The Government's decision to focus on infrastructure as a priority sector and the policy initiatives announced has permitted entry of Private and Foreign investments in the core areas of construction. It is therefore necessary to explore the scope for building infrastructures through Public-Private partnerships. It has been estimated that about 51% of the total investment under the NHDP will come in from the private sector. Further, about a third of the total investment expected in the state roads will come in from the private sector. This will create immense opportunities in the infrastructure sector. 

(b) Opportunities and Threats/Risks and concerns : 

The quality of their infrastructure at present simply will not allow the economy to reach the level of competitiveness needed to achieve 8% growth in an open economy. For growth to be maintained at this level, it is necessary that requisite infrastructure is put in place as there is a fear that infrastructural constraints will hold back this level of economic growth. However, the investment requirement for meeting the infrastructure deficit is such that it cannot possibly be met by relying on public sector alone. It is therefore necessary to explore the scope for building infrastructures through Public Private Partnerships. The prime Minister has established a committee on infrastructure, under his chairmanship, to systematically review policy issues in each of the infrastructure sectors, and to determine an agenda for policy change and also to monitor implementation. Among the decisions taken by this Committee was the endorsement of an ambitious National Highway Development Programme, involving a total investment of Rs.2200000.000 millions upto 2012. Most of these investments are expected to be realized through partnerships with private sector. 

Stiff competition leading to price-cuts and low operating margins, sustained increase in prices of certain materials used in constructions such as steel, cement, building materials and petroleum products, adapting to technological changes and having suitable manpower, disparities and any changes in indirect tax structure in respect of VAT/Service tax etc. are the key issues/ concerns to post major threats in the growth of Construction Industry. 

(c) Segment wise performance and outcome : 

The Company is in the business of construction and infrastructure development of roads, dams, bridges, highways etc. and hence operates in a single Business segment.

(d) Outlook: 

The government's focus on implementing infrastructure projects on BOT basis has created great opportunities for private sector. However, it needs to take pre-emptive measures to ensure that the interest of private players and momentum in the growth is sustained. 

The overall outlook of Construction Industry seems positive in view of the present economic environment. However, the sustained growth will mainly depend upon future policy measures and commitment of financial outlays by the Government, the inflow of foreign investment as well as private capital investment. 

Contingent Liability:

Contingent Liabilities are not provided for and are disclosed by way of notes:

• Bank Guarantee outstanding amounting to Rs.1428.432 millions (Previous Year Rs.913.884 millions)

• The Company has preferred an Appeal to the Income Tax Appellate Tribunal for an addition of Income of Rs.5.859 millions (Net of Tax Rs.2.827 millions) Previous Year Rs.5.859 millions (Net of Tax Rs.2.827 millions) confirmed by the Commissioner of Income Tax (Appeal).

FIXED ASSTES:

· Land

· Buildings

· Plant And Machinery

· Furnitures , Fixtures And Office Equipments

· Vehicles

Company profile:

A nation is incomplete without infrastructure. It's part of growth and a sign of progress. Subject s into constructing infrastructure for the nation. It all began in 1957 and today they have carved out a niche as specialist in construction of infrastructure, civil engineering works such as Highways, Airports, Flyovers, Bridges, Tunnels, Canals, Water supply schemes, Sewerage projects, Irrigation Dams, Storage reservoirs, Buildings, and foundation engineering with sophisticated pile drilling Hydraulic Rigs. 

The company has made a humble beginning in 1957 as a Partnership in the name and style of Gopaldas Vasudev and Company. Slowly the operations built up and expanded. What started initially with a small road works from Bombay Municipal Corporation has today grown to a company with a dedicated, experienced and expert team of workforce achieving remarkable feats in the field of construction of civil engineering.

Directors having years of exposure and experience in business with Mr. Jagdish K. Valecha as their dynamic Managing Director and Shri. Vasudev P. Valecha as their Chairman, both at the helm of business affairs governing the VEL's Corporate Management comprises of professionally qualified business very successfully. The company has as staff strength of over 500 people including over 100 people with technical and engineering skills and experience. 

Subject has entered into a number of technical collaborations as well as joint ventures with overseas companies, bringing the latest technical know-how into the execution of its projects.

Subject is financially strong with profit making company and sound performance for the last 5 decades. 

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.42.97
UK Pound	1	Rs.84.72
Euro	1	Rs.66.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

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