MIRA INFORM REPORT

Report Date :

06.11.2008

IDENTIFICATION DETAILS

Name :	PIX TRANSMISSIONS LIMITED
Registered Office :	J-7, MIDC, Hingna Road, Nagpur Via Mumbai, Nagpur – 440 016, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	22.07.1981
Com. Reg. No.:	11-024837
CIN No.: [Company Identification No.]	L25192MH1981PLC024837
TAN No.: [Tax Deduction & Collection Account No.]	MUMP16300E
PAN No.: [Permanent Account No.]	AAACP6016C
Legal Form :	It is a public limited liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of “V” Belts, Raw Edge, Poly V-Belts, Variable Speed Belts, Fire Resistant Belts, Antistatic Belts, Oil and Heat Resistant Belts, Dry Cover Belts, etc.

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 1944765
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are fair. Financial position is satisfactory. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	J-7, MIDC, Hingna Road, Nagpur Via Mumbai, Nagpur – 440 016, Maharashtra, India.
Tel. No.:	91-7104-236501 (5 Lines)/ –236503/504/ 237051 / 237729
Fax No.:	91-7104-236505 / 236506 / 235753
E-Mail :	pixtrans@nagpur.dot.net.in spaul@pixtrans.com pixtran@bom2.vsnl.net.in accounts@bom.pixtrans.com
Website :	http://www.pixtrans.com
Mumbai Office :	Pals 1^st Road. TPS IV Off. Water Fie LD Road Bandra (W), Mumbai 400050, Maharashtra, India.
Tel. No.:	91-22-26404556 / 26402229
Fax No.:	91-22-26402225
Factory :	Ø (Unit no. 1) J-7, MIDC Hingna, Nagpur - 440 016 Ø (Unit no. 2) K-36, K-37, k-38, MIDC Hingna, Nagpur - 440 016 Ø (Unit no. 3) Bazargaon, Amravati Road, Nagpur-440 023

DIRECTORS

Name :	Mr. Pratipal Singh Sethi
Designation :	Chairman
Name :	Mr. Amarpal Sethi
Designation :	Managing Director
Name :	Mr. Sukhpal Singh Sethi
Designation :	Director
Name :	Mr. Sonepal Singh Sethi
Designation :	Director
Name :	Mr. Haresh Eidnani
Designation :	Director
Date of Birth/Age :	12.10.1964
Qualification :	B. Sc
Date of Appointment :	21.09.1999
Name :	Mr. Krishna K. Bhat
Designation :	Director
Name :	Mr. Jose Jacob
Designation :	Director
Name :	Mr. Joe Paul
Designation :	Director
Date of Birth/Age :	08.03.1962
Qualification :	B.Com., MIRPM
Date of Appointment :	01.05.2000
Name :	Mr. L. N. Gupta
Designation :	Director
Name :	Mr. Darshan Singh Chadha
Designation :	Director
Name :	Mr. Rishipal Sethi
Designation :	Director
Date of Birth/Age :	15.06.1973
Qualification :	B.Sc. (Elec. Engg, USA)
Date of Appointment :	29.12.2004
Name :	Mr. Narindar Kumar
Designation :	Director
Name :	Mr. Pradeep Havnur
Designation :	Director
Name :	Mr. Aqueel A Mulla
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Shybu Varghese
Designation :	Company secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters (Indian Promoters including directors and their relatives)	5518635	54.50
Mutual Funds, UTI
Banks, Financial Institutions, Insurance companies (Central/State Government Institutions/Non Government Institutions)	2700	0.03
Private/ Bodies corporate	590236	5.82
Indian Public	3990486	39.43
NRI / OCB’s	19693	0.19
Clearing Members	3450	0.03
Total	10125200	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of “V” Belts, Raw Edge, Poly V-Belts, Variable Speed Belts, Fire Resistant Belts, Antistatic Belts, Oil and Heat Resistant Belts, Dry Cover Belts, etc.
Products :	· Wrapped Construction Belts · Cut Edge Cogged/Plain Belts · Ribbed V-Belts · Synchronous Belts · Lawn and Garden Belts · Variable Speed Belts · Antistatic Belts · FRAS (Fire Resistant Antistatic) Belts · Oil and Heat Resistant V-Belts · Agriculture Belts · Entire range of Low-Medium-High pressure hoses and hose assemblies · Spiral Hoses · Industrial Hoses · Thermoplastic Hoses

PRODUCTION STATUS:

(As on 31.03.2008)

PARTICULAR	Amount (Rs. In Millions.)
1. i) Licensed Capacity
A) J-7, Hingna
V-BELTS (In Nos)	16.000
B) Bazargaon
V-BELTS (In Nos)	15.000
C) High Pressure Braided Hoses (Hoses in Meter)	15.000
D) End Fitting (In Tons)	700 Tons
ii) Installed Capacity
A) J-7, Hingna
V-BELTS (In Nos)	87.000
B) Bazargaon
V-BELTS (In Nos)	51.000
C) High Pressure Braided Hoses (Hoses in Meter)	11.700
D) End Fitting (In Tons)	10.300
2. Production in quantity
V Belts in Nos (J-7)	7.271
V Belts in Nos (Bazargaon)	2.243
High Pressure Houses (Bazargaon)
In Meters	6.454
In Nos	0.406
Hoses Assembly (In Nos)	0.099
End Fitting	1.171

GENERAL INFORMATION

Suppliers :

· Exclusive Diamond Products

· Gujrat Polymers

· Ideal Enterprises

· John Steel Tech. Private Limited

· Kailash Timber Corp.

· Merchem Limited

· Noble Catalyst

· N. C. Corporation

· Om Tex Chem. Private Limited

· Plasto Pack (I) Private Limited

· Paper Combines

· Progressive Products

· Roshan Industries

· SOS Enterprises

· Shrjnath Packers

· Unipack

· Uttkarsh Packers Private Limited

No. of Employees :

1200

Bankers :

v State Bank of India

v Andhra Bank

v ING Vysya Bank Limited

v State Bank of Hyderabad

Facilities :

PARTICULARS	01.04.2007 To 31.03.2008 (Rs. In Millions)
SECURED LOANS
Form State Bank of India, Nagpur	215.974
From State Bank of Hydrabad, Mumbai	124.190
From a Bank Against Hypothecation of Stock (Packing Credit)	267.060
Cash Credit From Banks Secured By Hypothecation of Stock	294.244
From Parties Against Hypothecation of Cars and Moulds	5.999
From Parties Against Bill Discounting	9.430
Total	916.900
Note: 1.Term loan from state bank of india, nagpur and state bank of hyderabad, mumbai secured by way of Hypothe cation of all immoveable properties ( except book debts and stocks ) including Moveablemachineries, spares.tools and accessories present and future installed and kept in loose / in cases at bazargaon and k - 37, k - 38 and further by personal gaurantees of three promoters Directors. 2. Working capital loan includes short term loan availed for working capital.
UNSECURED LOANS
Long Term Loans	410.508
Short Term Loan	2.113
Total	412.622

Banking Relations :	Satisfactory
Auditors :
Name :	S. C. Bandi and Company Chartered Accountants
Address :	Mumbai, Maharashtra
Associates/Subsidiaries :	· Pix South America Importacao E Exportacao · De Correias E Mangueiras Limited · Pix Middle East FZC, UAE
Joint Venture Company	· Pix Europe Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
20500000	Equity Shares	Rs.10/- Each	Rs.205.000 Millions
450000	Non Convertible 6 % Cumulative Redeemable Preference Shares	Rs.100/- Each	Rs.45.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10125200	Equity Shares	Rs.10/- Each	Rs.101.252Millions
435000	Non Concertible 6% Cumulative Redeemable Preference Shares	Rs.100/- Each	Rs.43.500 Millions
	Less: Allotment Money in Arrears from Public Other than Directors		Rs.0.011 Millions
	Total Paid UP Capital		Rs.144.741Millions
	Note: Equity Share Warrants: 1674800 Warrants at Rs.56.00 each Application Money at Rs5.60 (10%) Received		Rs.9.378 Millions
	Total		Rs.154.119Millions

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		144.741	141.489	141.489
2] Equity Share Warrants		9.379	0.000	0.000
3] Reserves & Surplus		234.833	204.799	190.688
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		388.953	346.288	332.177
LOAN FUNDS
1] Secured Loans		916.901	678.150	401.905
2] Unsecured Loans		412.622	348.893	284.927
TOTAL BORROWING		1329.523	1027.043	686.832
DEFERRED TAX LIABILITIES		75.454	67.815	58.098
TOTAL		1793.930	1441.146	1077.107
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1068.742	881.651	673.772
Capital work-in-progress		72.308	90.336	34.717
INVESTMENT		14.375	11.295	11.295
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	366.422	279.937	191.838
	Sundry Debtors	265.389	219.773	219.550
	Cash & Bank Balances	77.747	49.755	41.260
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	161.623	120.221	75.084
Total Current Assets		871.181	669.686	527.741
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	233.523	212.111	142.506
1	Provisions	0.000	0.000	28.271
Total Current Liabilities		233.523	212.111	170.777
Net Current Assets		637.658	457.575	356.964
MISCELLANEOUS EXPENSES		0.000	0.000	0.359
PRELIMINARY EXPENSES		0.847	0.289
TOTAL		1793.930	1441.146	1077.107

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		1654.516	1429.297	794.971
Other Income		2.314	1.790	0.000
Total Income		1656.830	1431.088	794.971
Profit/(Loss) Before Tax		15.111	14.138	17.942
Provision for Taxation		0.000	0.000	6.234
Profit/(Loss) After Tax		15.111	14.138	11.708
Export Value		907.347	793.557	465.699
Import Value		555.944	466.490	166.793
Expenditures :
	Manufacturing Expenses	582.962	564.118	0.000
	Raw Material Consumed	831.315	665.936	0.000
	Interest	100.881	71.774	0.000
	Depreciation & Amortization	113.918	85.404	0.000
	Other Expenditure	12.643	29.718	0.000
Total Expenditure		1641.719	1416.95	777.029

KEY RATIOS

PARTICULARS	31.03.2008	31.03.2007	31.03.2006
Debt Equity Ratio	3.25	2.53	2.21
Long Term Debt-Equity Ration	1.98	1.72	1.63
Current Ration	1.01	1.13	1.25
Turnover Ratios
Fixed Assets	1.11	1.19	1.20
Inventory	5.12	6.06	6.62
Debtors	6.82	6.75	5.87
Interest Cover Ration	1.25	1.52	1.29
Operating Profit Margin (%)	15.16	14.92	15.02
Profit Before Interest and Tax Margin (%)	8.27	8.95	8.69
Cash Profit Margin (%)	7080	6.96	7.83
Adjusted Net Profit Margin (%)	0.91	0.99	1.50
Return on Capital Employed (%)	8.89	10.70	10.84
Return On Net Worth (%)	4.73	4.77	6.47

LOCAL AGENCY FURTHER INFORMATION

Other Details:

Increase in Share Capital:

The Directors Promoters were allotted convertible warrants during the year under review.

Consequent to the above, the issued, subscribed and paid up share capital of the company increased from Rs.98.000 Millions(9800000 Shares) To Rs. 101.252 Millions (10125200 Shares) as on March 31, 2008.

Contingent liability not provided in respect of :-

i) Letter of Credit opened by Bank Rs.133.886 Millions

(Previous year Rs. 164.744 Millions)

ii) Foreign bills discounted by banks Rs.147.300 Millions

(Previous year Rs. 188.827 Millions)

iii) Dividend on non convertible cumulative redeemable

Preference shares of Rs.4,35,00,000 @ 6%, accumulated

for two year Rs.52,20,000.00 (previous year Rs.26,10,000

for one year) as on 31.03.2008 not provided.

Fixed Assets:

· Plot

· Plant and Machinery

· Electrical Instrument

· Furniture and Fixture

· Office Equipments

· Vehicles

MANAGEMENT DISCUSSIONS AND ANALYSIS REPORT:

The Indian economy after achieving a high growth rate of 9.6% of in the year 2006-07 and an estimated growth rate of 8.7% in the year 2007-08 has shown moderation during the current year, which is reflected in the index of Industrial Production. The manufacturing sector has been affected by high inflation, global slowdown and an appreciation of the rupee While interest rate have impacted consumer demand in many industries, leading to a slowdown in corporate investment, the appreciating rupee and the financial crisis in other developed countries have had an impact on the service sector. With no compensating growth in agriculture, the economy overall has to put up with a lower growth rate for the time being. With the Government's concern over the risk of high inflation, the balance between inflation and growth seems to be shifting in favour of the former.

Industry Structure and Developments :

Changing economic and business conditions, rapid technological innovation, proliferation of the internet, and globalization are creating an increasingly competitive market environment that is driving corporation to transform the manner in which they operate.

Customers are increasingly demanding improved products and services with accelerated delivery times and at lower prices. To adequately address these needs, corporations are focusing on their core competencies and using outsourced technology service providers to help improve productivity develop new products conduct research and development activities, reduce business risk, and manage operations more effectively.

The positive aspect of India's growth story is the extent to which it has been driven by widespread domestic consumer demand, which accounts for over 65% of GDP This is very different from China's growth where the impetus is from export and huge annual increases in both public and private investments. Economists believe that the anchor of domestic demand in India creates greater stability for the growth process and tends to immunize the country from global cycles relative to an export and investment-intensive China.

Awards, Certification and Recognition:

The Company has continuously received Export Award for highest Export in our products from CAPEXIL. Also Maharashtra Government has given us Export Award for highest exports.

Website details attached

Company profile

Subject is the fastest upcoming Global Leader in Power Transmissions Business. Established in 1982 at Nagpur in India. It is engaged into the manufacturing of a wide range of world-class quality V-Belts and Hoses to suit various Power Drive needs, such as Wrap Construction V-Belts, Cut Edge Belts, Ribbed Belts, Synchronous Belts, Hoses and Hose Assemblies.

The company offers most advanced and complete range of high quality products not only at competitive price but also provides an in-depth technical advice on various Power Transmission needs.

CERTIFICATIONS AND ACHIEVEMENTS

The company has distinguished itself in the industry by having number of approvals from various Global Certifying Authorities.

It is an ISO/TS 16949:2002 registered company

It is the recipient of ATEX certification from Germany for its Fire Resistant Antistatic Belts (FRAS), the  belts being guaranteed for explosion protection, ATEX certificate is a mandatory requirement in Europe for the belts  involved in applications using explosive material

It has achieved prestigious approval for Hoses from U. S. Dept. of Labor i.e. MSHA (Mines Safety and Health Administration), it is a governing body for any mechanical products which is to be used in Mining application, which certifies the Flame Resistant properties of the Hose outer cover by carrying out stringent tests at their laboratories.

Its product conforms to all major international standards such as DIN, SAE, BCS and EN.

MARKETING AND DISTRIBUTION NETWORK

Its extensive Marketing and Distribution network is spread over more than 45 countries globally, ensures that it can respond rapidly to the changing customer needs. The company has established overseas offices in UK, Brasil and Germany, in order to serve its customers better. Its products are exported to over 65 countries across the world

CUSTOMER SATISFACTION

Subject stress on consistency in quality has qualified it as a trusted and reliable manufacturer of V-Belts and Hoses and it also counts some of the largest OEM's to its account. The company is committed to the up-gradation and continuous improvement of technology and processes to maximize customer satisfaction.

PRODUCT RANGE

At present the company produces an extensive range of products in terms of V-Belts and Hoses. It manufactures entire range of Belts and Hoses used in Industrial and Automotive application, which includes

· Wrapped Construction Belts

· Cut Edge Cogged/Plain Belts

· Ribbed V-Belts

· Synchronous Belts

· Lawn and Garden Belts

· Variable Speed Belts

· Antistatic Belts

· FRAS (Fire Resistant  Antistatic) Belts

· Oil and Heat Resistant V-Belts

· Agriculture Belts

· Hoses and Hose Assemblies

Logical development and adoption of new techniques in material and production handling gives its product a qualitative edge over its competitors. With such a wide range of products SUBJECT caters to all the Power Transmission Needs of a customer. Thus, thinking globally under the present fast changing scenario, subject acceptance is based on the firm belief which says -

Subject is a manufacturer, exporter of Belts and Hoses with plants situated at Nagpur in Maharashtra is proud to announce the acquisition of Flexequip Hydaulics of U.K. by its European subsidiary SUBJECT Europe Limited.

This acquisition establishes SUBJECT, who is already one of the most dynamic forces in the European Power Transmission industry, as a major participant in the global Fluid Power industry. Thus, SUBJECT Transmissions Limited India, which was established in 1982, is emerging fast as the global contender in the Power and Fluid transmissions business, supplying its products to customers in over 45 countries.

Flexequip needs no introduction to those in the Hydraulics industry. An innovator for many years as an End- Fittings manufacturer; it remains a leading supplier of quality End-fittings, Adapters, Hose-Assemblies, Accessories, and other industry-related products.

Established in 1971, Flexequip provides its services to domestic and export market through an established distribution network, and caters to the OEMs directly. Prior to the acquisition, Flexequip was the exclusive distributor of PIX hose products, for UK and Ireland. Now, as a manufacturer, PIX-Flexequip will have a competitive edge, and can offer better flexibility to cater to the markets and customer’s requirement.

There is a strong synergy between the two companies, and their joining together will open up new opportunities for growth; with vertical market integration, and product range expansion, driving the alliance forward. More importantly, this new venture, christened PIX-Flexequip Hydraulics LImited, can now offer their customers total satisfaction by providing a completely qualified, fully-compatible Hose-Assembly solutions.

The combined distribution network, established in 45 countries, has a significant opportunity to sell the complete range of subject hydraulic hose and fittings, providing end-to-end solution for all hydraulic needs.

Speaking to the CMD Mr. Amarpal Sethi, SUBJECT Transmissions Limited, India, he commented “They are indeed proud of this acquisition, this is their first international acquisition. This acquisition gives them an edge over several other manufacturers by opening new avenues. Their customers would now have a higher level of technical support for all their hydraulic solutions related to Hose and Assemblies".

Commenting on the acquisition, Rishipal Sethi, Joint Managing Director of PIX Europe said, “They are very excited about the opportunities this acquisition brings, in terms of operational synergies, expansion of their product range, and increasing their customer base; as well as providing expertise in end-fittings, and fluid power in general. It is a defining moment in the history of Subject and heralds their emergence as a global power in the field of hydraulics”.

Flexequip’s second location, a sales office and warehouse in Barry, South Wales, will continue to effectively service the UK. Of Flexequip’s total turnover, 30% of their products were exported to over 30 countries, and now they effectively double their additional network of distributors around 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.47.18
UK Pound	1	Rs.75.05
Euro	1	Rs.60.89

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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	YES
--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