MIRA INFORM REPORT

Report Date :

25.10.2008

IDENTIFICATION DETAILS

Name :	INOX INDIA LIMITED
Registered Office :	ABS Tower, 4^th Floor, Old Padra Road, Baroda – 390007, Gujarat
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	21.12.1986
Com. Reg. No.:	04-18945
CIN No.: [Company Identification No.]	U99999GJ1976PLC18945
TAN No.: [Tax Deduction & Collection Account No.]	BRDI00238A BRDI00194F
PAN No.: [Permanent Account No.]	AAACI4416P
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturers, Exporter and Importer of Cryogenic Tanks, Cold Converter Systems, Vacuum Insulated Tanks, Atmospheric Vaporisers, Cryo Containers, Disposable Gas Cylinder, etc.

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 2500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having satisfactory track. The company has shown steady progress over the years. General financial position is satisfactory. Payments are reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	ABS Towers, 4^th Floor, Old Padra Road, Vadodara-390007, Gujarat, India.
Tel. No.:	91-265-2343125/ 235912/ 2343226/ 3056100/ 2343123/ 2343124/ 2653056100
Fax No.:	91-265-2333398/ 2341449/ 2333398
E-Mail :	inox@inoxindia.com mktg@inoxindia.com comml@inoxindia.com plogar@inoxindia.com
Website :	http://www.inoxindia.com
Area :	500 sq. ft.
Location :	Owned
Factory :	Village Katol, Kalol, Near Baroda, District Panchmahals, Gujarat, India
Area :	48258 sq. mtrs.
Location :	Owned
Factory :	Boru Road, Near Narmada Colony, Kalol, Panchmahal – 389 330, Gujarat, India.

DIRECTORS

Name :	Mr. Devndrakumar Sidhhomal Jain
Designation :	Director
Address:	94, Benzer Terrace, Sea Face Worli, Mumbai – 400 018, Maharashtra, India
Date of Birth:	02.03.1929
Date of Appointment :	16.04.1979
Name :	Mr. Pavankumar Devendra Jain
Designation :	Director
Address:	31, Benzer Terrace, A G Khan Road, Worli Mumbai – 400 018, Maharashtra, India
Date of Birth:	17.05.1951
Date of Appointment :	16.04.1979
Name :	Mr. Subhodhkumar Lalitkumar Jain
Designation :	Director
Address:	36, Golf, Links, New Delhi
Date of Birth:	21.09.1978
Date of Appointment :	17.03.2004
Name :	Mr. Vivekkumar Devenkumar Jain
Designation :	Director
Address:	47, Golf, Links, New Delhi – 110 003, India
Date of Birth:	30.08.1955
Date of Appointment :	20.04.1992
Email :	vkjain@gfl.co.in
Name :	Mr. Siddharth Pavankumar Jain
Designation :	Director
Address:	Benzer Terrace, 94, Worli, Sea Face, Mumbai
Date of Birth:	21.09.1978
Date of Appointment :	17.03.2004
Name :	Mr. Parag Padmakar Kulkarni
Designation :	Director
Address:	C -404 Samrajya Flat opposite Sabri Vidyalaya, off Vasna Road, Vadodara – 390 007, Gujarat, India
Date of Birth:	07.09.1950
Date of Appointment :	25.09.1999
Name :	Mrs. Nandita Jain
Designation :	Company Secretary
Address:	47, Golf Links, New Delhi – 110003, India
Date of Birth:	22.10.1962
Date of Appointment :	24.04.2008

KEY EXECUTIVES

Name :	Mr. Pavankumar Logar
Designation :	Company Secretary
Address :	102, Samrajya Flat opposite Rajesh Tower, Subhnapura, Baroda – 390 023, Gujarat, India
Date of Birth/Age :	10.06.1967
Date of Appointment :	13.12.1993

SHAREHOLDING PATTERN

(As on 30.09.2005)

Name of Shareholders	Equity Shares	Preference Shares
Devendra Kumar Jain	10000	0.000
Pravan Kumar Jian	30000	44000
Vivek Kumar Jain	30000	0.000
Siddarth Kumar Jain	40000	16000
Kamal Devi Jain	10000	0.000
Nayantara Jian	20000	0.000
Nandita Jian	20000	0.000
Devansh Jain	40000	0.000
Vivek Kumar Jain	0.000	80000
Total	200000	140000

(As on 31.03.2007) 

Category	Percentage
Directors or relatives of directors	98.00
Others	2.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers, Exporter and Importer of Cryogenic Tanks, Cold Converter Systems, Vacuum Insulated Tanks, Atmospheric Vaporisers, Cryo Containers, Disposable Gas Cylinder, etc

Products :

· Cold Convertor Systems

· Vacuum Insulated Tanks

· Atmospheric Vaporisers

· Cryo Containers

· Disposable Gas Cylinders

ITC Code	Product description
84198910	Cold Converter Systems
73110090	Cryogenic Tanks for liquefied gases
84195090	Atmospheric Vaporizers
96170012	Cryo Containers
73110020	Disposable gas cylinders

Exports :

Countries:

• Bahrain
• Dubai
• Indonesia
• Japan
• Jordan
• Malaysia
• Nepal
• Philippines

Imports :

Countries:

• Europe
• U.S.A.

Terms :

Purchasing :

L/C and D/A basis

PRODUCTION STATUS as on 31.03.2005:-

Particulars	Unit	Installed Capacity	Actual Production
Cryogenic Tanks for liquefied Gases	Nos	125	85
Cold convertor Systems	Nos	125	58
Atmospheric Vaporisers	Nos	159	219
Cryo Containers	Nos	10000	8856
Disposable gas cylinder	Nos	540000	224293
ISRO Project	Nos	---	---

GENERAL INFORMATION

No. of Employees :	200 persons in its set up comprising of 25 persons in office and 175 persons in factory
Bankers :	Ø Bank of Bahrain & Kuwait B. S. C. Jolly Maker Chamber – II, 225, Nariman Point, Mumbai – 400021, Maharashtra, India Ø Centurion Bank Limited Productivity House, Productivity Road, Alkapuri, Baroda – 390007, Gujarat, India Ø IDBI Bank Limited Concorde, R.C. Dutt Road, Alkapuri, Baroda – 390007, Gujarat, India Ø ABN Amro Bank N.V. Alkapuri, Baroda – 390007, Gujarat, India Ø ICICI Bank Limited Landmarkrace Cource Circle, Alkapuri, Baroda – 390 015, Gujarat, India Ø HDFC Bank Durga Niwasm G Road, Panaji, Goa – 403001, Goa, India
Banking Relations :	Satisfactory
Auditors :
Name :	S. C. Bandi & Company Chartered Accountants
Address :	812, Maker Chamber V, 221, Nariman Point, Mumbai - 400021, Maharashtra, India
Associates/Subsidiaries :	Ø Refron Valves Limited Ø Gujarat Flurochemicals Limited Ø Hydrogas India Private Limited Ø Inox Air Products Limited Ø Inox Lease & Finance Limited Ø Superior Air Products Limited
Membership :	Ø Confederation of Indian Industry

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
9076350	Equity shares	Rs.10/- each	Rs.90.764 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		90.764	43.382
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		412.256	300.385
4] (Accumulated Losses)		0.000	0.000
NETWORTH		503.020	343.767
LOAN FUNDS
1] Secured Loans		0.000	12.939
2] Unsecured Loans		80.544	0.000
TOTAL BORROWING		80.544	12.939
DEFERRED TAX LIABILITIES		39.844	17.565
TOTAL		623.408	374.271
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		304.000	112.075
Capital work-in-progress		12.433	0.000
INVESTMENT		0.880	0.697
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	475.679	296.193
	Sundry Debtors	120.288	81.727
	Cash & Bank Balances	15.011	30.491
	Other Current Assets	0.334	0.560
	Loans & Advances	47.024	37.096
Total Current Assets		658.336	446.067
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	345.809	179.164
	Provisions	6.432	5.404
Total Current Liabilities		352.241	184.568
Net Current Assets		306.095	261.499
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		623.408	374.271

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		1885.366	1274.642	818.689
Other Income		33.018	7.900	2.863
Total Income		1918.384	1282.542	821.552
Profit/(Loss) Before Tax		371.034	304.593	166.897
Provision for Taxation		123.015	101.644	58.710
Profit/(Loss) After Tax		248.019	202.949	108.187
Export Value		942.689	702.672	395.695
Expenditures :
	Raw Material Consumed	1034.681	688.821	441.089
	Consumption of stores and spares parts	111.545	79.428	0.000
	Increase/(Decrease) in Finished Goods	[127.742]	[120.685]	0.000
	Salaries, Wages, Bonus, etc.	78.857	52.000	43.643
	Managerial Remuneration	3.305	2.971	0.000
	Payment to Auditors	0.201	0.133	0.085
	Interest	18.143	2.187	0.724
	Insurance Expenses	4.387	2.932	1.688
	Power & Fuel	22.322	16.015	9.736
	Depreciation & Amortization	25.606	14.546	0.000
	Other Expenditure	376.046	239.601	157.690
Total Expenditure		1547.350	977.949	654.655

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	12.93	15.82	13.16
Net Profit Margin (PBT/Sales)	(%)	19.68	23.89	20.38
Return on Total Assets (PBT/Total Assets}	(%)	NA	31.24	29.90
Return on Investment (ROI) (PBT/Networth)		NA	0.60	0.48
Debt Equity Ratio (Total Liability/Networth)		NA	0.86	0.57
Current Ratio (Current Asset/Current Liability)		NA	1.86	2.41

HISTORY:

Subject was incorporated on 21^st December, 1976 at New Delhi in India under the Name and Style ‘Baroda Oxygen Company Limited’ having Old Registration Number 55-2958. It changed its name to the present and transferred its registered office at Vadodara in Gujarat on 08.02.1993 obtaining New Company Registration Number 18945.

It is an ISO 9001 Cryogenic Engineering Company focused on Cryogenic insulation technology equipment and systems.

Largest Manufacturer of Cryogenic Liquid Storage and transport tanks in India and reputed supplier to leading international Gas companies worldwide like Air Liquid, Air Products, BOC, Linde, Messer, Nippon Sanso, Praxair.

The company with a penchant to perfection, commitment to excellence and meeting world class standards having full range of Cryogenic Liquid Storage Tanks and Distribution Tanks.

Standard Col Converters or Vacuum Insulated Evaporators and mobile transport tanks for Liquid Gases like Nitrogen, Oxygen, Argon and Carbon Dioxide. Range includes Vaporises, Insulated Piping, LN2 containers and other related accessories

DIRECTOR REPORTS

DEVELOPMENTS

The Company has started regular manufacture of cryogenic vessels to advance European Codes. This has helped in improving export market. 

During the year The Company has also brought out new range of vertical standard tanks with improved performance. The company has also developed new suspension system with improved performance for transport tanks. 

The company is in trade terms with the following:

· Baldota Valves and Fittings Company Private Limited

· Devchand Engineers Private Limited

· Mech Well Fittings Private Limited

· Penal Fab

· Shakti Industries

FORM 8:

Corporation identity number or foreign company registrations number of the company	U99999GJ1976PLC18945
Name of the company	INOX INDIA LIMITED
Address	ABS Tower , 4^th Floor, Old Padra Road, Baroda – 390 007, Gujarat, India
This Form is for	Modification of charge
Type of Charges	Book Debts Movable Property Floating Charge All pResent and Future Current, Movable Fixed Assets
Particular of the charge holder	ABN Amro Bank N.V. Alkapuri, Baroda – 390007, Gujarat, India Shetal/Mehta@abnamro.com
Nature or description of the instrument creating charge	Hypothecation of stock and Book Debts on Pari Passu basis with other lenders (limit will be restricted to the extent of ABN Amro Bank N.V. Shares in the Consortium/multiple Banking arrangement) Second pari passu charge by the way of hypothecation on owned plant and machinery in live with other banks security.
Date of the instrument creating charge	15.05.2008
Amount Secure by the charge	Rs.311.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest OD/STPLR/FCNR Loan/ Export Finance/ Bill Discounting / Buyers Credit ( Presently 15.25% p.a.) less 3.75% p.a. i.e. 11.5% p.a. Letter or Credit Bank Guarantee: At negotiated Rates General Guarantee: At negotiated Rates Terms of Repayment: OD/CC: Repayable on Demand FCNR: Maximum Month EPC/PSC/BD/BC: Maximum 180 days LC: Maximum 6 month BG: Maximum 3 years General Guarantee: Maximum 3 years Margin: The Borrower will Maintain a sufficient quality and market value of the goods and assets to provide the margin of the security required by the bank. Extent and operation of the charge: First Pari Passu charge on current assets (inventory and receivable) (both present and future) of the borrower. Second Pari Passu charge on movable fixed assets (both present and future) of the borrower.
Short particulars of the Property charged	First Pari Passu charge on current assets (inventory and receivable) (both present and future) of the borrower. Second Pari Passu charge on movable fixed assets (both present and future) of the borrower.
Particular of the present modification:	By virtue of this modification, Hypothecation charge created in favour of bank has increased to Rs.311.000 Millions

Name of the company

INOX INDIA LIMITED

Presented By

Mr. P K Jain , Director

1) Date and description of instrument creating the change

Agreement of hypothecation dated 08.12.1997

2) Amount secured by the charge/amount owing on the securities of charge

Rs.58.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

All present and future goods , book debts and all other movable assets of the borrower including documents of title to the goods, outstanding moneys, receivable \by way of cash assistance and or cash incentives under the cash incentive scheme or any other scheme claims including claims by way of refund of custom / excise duties under the duty drawback credit scheme or any other scheme, bills, invoices, documents , contracts, insurance policies , guarantee , engagement, securities , investment and right and the present and future machinery belonging to or in the possession or under the control of the borrower wherever lying stored and kept and whether in possession of the borrower or of the bank or any third party whether in India or elsewhere through out the world (including all such goods, other movable assets as may be in course of shipment transit or delivery) .

4) Gist of the terms and conditions and extent and operation of the charge.

· · The bank is entitled to charge interest at such rate as may be determined by the bank

· · The borrower will at all time maintain a sufficient quantity and market value of the said goods and assets to provide the margins of security required by the bank from time to time.

· · This agreement shall operate as a continuing security for all moneys indebtedness and liabilities aforesaid notwithstanding the existence of a credit balance in the account of accounts at any time or any partial payments.

5) Name and Address and description of the person entitled to the charge.

Centurion Bank Limited

Address: Ground Floor, Productivity House, productivity Road, Alkapuri , Vadodara – 390 007, Gujarat, India

6) Date and brief description of instrument modifying the charge

The present modification is by way of execution of supplemental agreement of hypothecation of goods and assets for increase in the overall limit executed on 08.06.2005

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

By way of aforesaid supplemental agreement of hypothecation of goods and assets for increase in the overall limit executed on 08.06.2005 with centurion Bank Limited, Productivity House, productivity Road, Alkapuri , Vadodara – 390 007, Gujarat, India the bank has agreed to grant / revise to the company (the borrower) existing working capital finance from Rs. 38.500 millions (fund Based : Rs. 13.500 millions And Non –Fund Based RS. 25.000 millions ) to Rs. 133.500 millions (Fund Based Rs. 26.00 millions and non – Fund Based Rs. 107.500 millions ) secured by hypothecation of such goods , book debts movable and other assets interalia referred to in clause 2 and 3 of the agreement of the hypothecation of goods and assets for increase in overall limit executed on dated 08.12.97. the other term and condition shall remain unchanged subject to following terms and conditions:

Fund Based

Cash credit @8.50% p.a

Margins:
Raw Materials	25%
Consumables, store and spares	25%
Work in process	25%
Finished goods	50%
Book debts (upto 90 Days)	40%
Creditors	25%

Tenor on demand

Non –Fund Based

Letter of credit

Commitments @ 0.40% p.a

Usance @ 0.40 p.a

Bill Handling @ 0.10%

Bank guarantee - performance @0.80% p.a

Bank guarantee – financial @1.00% p.a

Tenor

ILC 180 days maximum FLC 180 days maximum

BG Maximum 30 month (including claim period)

FIXED ASSETS:

· Land

· Buildings

· Plant and Machinery

· Technical Know – how

· Electrical Installations

· Office equipments

· Air conditioners

· Furniture and Fixtures

· Vehicles

OTHER INFORMATION:

The provisions relating to licensed capacity are not applicable to the business of the company except for disposable Gas cylinder being 100% EOU Unit in which registered Capacity is same as of the Installed capacity.

WEBSITE DETAILS:

Subject is an ISO 9001 and OHSAS-18001 Cryogenic Engineering Company focused on Cryogenic insulation technology equipment and systems.

Largest manufacturer of Cryogenic liquid storage and transport tanks in India and reputed supplier to leading international Gas Companies worldwide like Air Liquide, Air Products, BOC, Linde, Messer, Nippon Sanso, Praxair. Impressive list of satisfied customers all over the world.

The Company with a penchant to perfection, commitment to excellence and meeting world class standards having full range of cryogenic liquid storage tanks, distribution tanks. 

Standard Cold Converters or Vacuum Insulated Evaporators and mobile transport tanks for Liquid Gases like Nitrogen, Oxygen, Argon and Carbon Dioxide. Range includes Vaporisers, Insulated piping, LN2 containers and other related accessories.

Specialized in cryogenic turnkey systems for advanced applications like Space Satellite Launch Pads and low temperature research.

Welcome to a Company that in a few short years since its inception in 1992, has grown to become a market leader in the highly challenging field of vacuum insulated cryogenic equipment in India. Sustaining regular production of standard and custom made Cryogenic tanks in a modern Workshop with 19000 sq.mtr area and 200 strong employees. 

Subject has clearly emerged as a technology leader due to collaborations with world-reputed manufacturers who have long standing experience in delivering quality products.

Technology for Cryogenic Tanks has been obtained from Nippon Sanso Corporation which is the largest industrial gas company in Japan having the largest market share for cryogenic equipments produced there. Experts from Nippon Sanso have worked very closely with Subject to set up the cryogenic tanks manufacturing facilities, to train its employees besides ensuring regular updating of the capabilities of the company India. Nippon Sanso has provided the backbone of engineering and quality systems for Subject to grow from strength to strength.

For Super-Insulated Cryogenic Containers, Subject has chosen Dia Reiki Kogyo Co. of Japan which is globally known for excellent quality products. Superior technology provided by Dia Reiki has enabled Subject to manufacture the latest generation portable super insulated cryogenic containers which match the most recent international standards.

Policy:

Simply, to meet customer expectations of high quality products, in the stipulated time frame, and to their satisfaction.

Their factory is located at Kalol, Dist Panchmahal, Gujarat, about 55kms from Vadodara.

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 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.49.95
UK Pound	1	Rs.79.56
Euro	1	Rs.63.65

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
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	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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		68

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